Business

Buy stocks like McDonald’s and Marvell, say top analysts


The logo of the McDonald’s restaurant is seen on a window with a reflection of the Kremlin tower in central Moscow, Russia on March 9, 2022.

Maxim Shemetov | Reuters

Another month has passed and the market outlook shows no signs of improving.

August started on an upbeat note, but ultimately ended in declines for all three major indexes. After the employment report just below estimateInvestors are shifting their focus to the upcoming Federal Reserve meeting in September.

Now that the short-term economic outlook is once again dimmed, it is a good idea to choose investment ideas with a long-term perspective. Finally, here are five stocks picked by Wall Street’s top experts, according to TipRanks, a service that ranks analysts based on their performance.

Hub group

Transport management company Hub group (HUBG) has navigated supply chain disruptions, high freight costs, and other difficulties.

A healthy balance sheet is a strength that helps Hub group innovate even in the face of difficulties. In its quarterly earnings commentary, management asserts that the company has about $300 million in cash and no net debt. (See Hub Group Stock Investors affection on TipRanks)

Recently, Hub group buying TAGG Logistics to expand its offering of complete solutions. Analyst Cowen Jason Seidl believes the acquisition will bring in an additional $200 million in full-year revenue this year.

Furthermore, Seidl found that acquisitions or cost increases did not prevent the company from fulfilling its share buyback commitments. “In line with commitments made in their Q2 earnings call, HUBG repurchased $35 million of stock in early August and an additional $15 million after the re-authorization, bringing the total repurchases to $50 million for the quarter to date,” the analyst said. raised its price target to $121 from $119 and maintained a buy rating on the stock.

Ranked 8th out of 8,000 analysts tracked on TipRanks, Seidl succeeded in 70% of its ratings, generating an average return of 25.4%.

McDonald’s

The world’s leading fast food chain McDonald’s (MCD) is next on analysts’ favorite stock picks this year. The company has learned to keep itself resilient to the downturn by continuing to collaborate and upgrading its pilot menu to cater to younger customers.

Analyst at Tigress Financial Partners Ivan Feinseth stands above his buy rating on McDonald’s and even recently raised his price target to $320 from $314. Feinseth believes continued growth initiatives will lead to McDonald’s to compensate for the cessation of its business in Russia.

The analyst also emphasized that MCD “reinvest its cash flow in new growth initiatives and enhance shareholder returns through ongoing dividend increases and share buybacks.” This increases customer retention, adds new customers, and enhances brand loyalty and recognition. (See McDonald’s dividend history and date on TipRanks)

Feinseth holds the number 189order position among 8,000 analysts in the TipRanks database. The analyst has seen 61% of his ratings generate a profit, yielding 12.4% on average.

Working day

Working day (TODAY) provides enterprise cloud applications for the finance and HR departments of companies worldwide. The software company recently released its quarterly results. Furthermore, the company has maintained its full-year guidance despite current difficulties. This increases the confidence of investors as well as analysts.

After printing, Deutsche Bank analyst Brad Zelnick maintains a buy rating on the stock and raises its price target to $230 from $225. “Leadership continues to acknowledge the uncertain backdrop and is seeing some closer scrutiny of larger deals while the competitive business still performs well for what Workday is all about,” said Zelnick. provided,” Zelnick said. (See Internal trading activities during the working day on TipRanks)

Zelnick is ranked 77th out of 8,000 analysts tracked on TipRanks. Notably, 69% of analyst ratings were profitable, generating an average return of 17.3% per rating.

Intuit

Another one of Zelnick’s favorite stocks is a tax preparation software provider Intuit (INTU). A consistent focus on expanding software capabilities and a solid business model has helped the company navigate the current macro constraints.

Intuit also boosted investor confidence as the company raised its long-term growth outlook for its Small Business segment. In Zelnick’s words, this improved outlook underscores the “impressive expansion of the business’s scale and potential for algorithmic growth in the eyes of many investors.” (See Intuit . hedge fund trading activity on TipRanks)

However, Zelnick also pointed to a number of obstacles that could affect the stock’s upside in the short term. First, aggressive investments in growth initiatives are preventing Intuit from improving its profitable growth potential. Even in fiscal year 23, Intuit has no reliable margin growth expectations. In addition, the guidance provided by the company does not effectively account for a major recession as expected soon. However, along the lines of history, Intuit resilient to the recession.

“While Intuit Inevitably, the macro environment is getting weaker, the guidance ahead reaffirms our belief that product leadership, engagement, and network effects on the AI ​​expert platform, Zelnick said. Its top edge are durable differentiators,” said Zelnick, maintaining his buy rating and raising his price target from $525 to $560.

Marvell Technology

The last stock on our list is semiconductors Marvell Technology (MRVL). Shortages of semiconductors, which have roiled the market for a long time, have made things difficult for Marvell.

However, Marvell has benefited from the need for chips to support advanced and emerging technologies. The company’s products support the automotive/network markets, data centers, enterprise networks, consumers, and transportation infrastructure. (See Marvell Stock Charts, Price History & Graphs on TipRanks)

Analyst Needham Quinn Bolton one of Marvell Bulls. “With a solid track record and through an expansion of a product portfolio targeting high-growth automotive/cloud computing/5G infrastructure markets, Marvell is now targeting one of the fastest-growing highest long-term revenue growth among large-cap companies in the semiconductor industry,” Bolton said.

Analysts expect that Marvell will achieve more than 30% organic revenue growth in CY22 and around 20% in CY23, thanks to the victory of the new design for its 5nm platform. This growth is also expected to be supported by increased chip supply from the main wafer foundry, substrate, and assembly and test partners. Bolton emphasized that this growth expectation is the highest among Marvell’s large-cap peers.

The analyst also expects a non-GAAP gross margin to hit 40% by the end of fiscal 24. Needless to say, Bolton has reiterated his buy rating on the stock, with a price target of 66 dollars.

This analyst is ranked 3rd out of 8,000 analysts on TipRanks database and he has a 67% success rate in his rating. Furthermore, each of his ratings has generated an average return of 41.4%.



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