Wall Street analysts wrote this week that there are a number of stocks on the verge of a boom. Analysts say these companies are still undervalued and should be bought now. CNBC Pro conducted top Wall Street research to find stocks with huge upside potential. These include: AECOM, Lululemon, Workday, Transocean and Intercontinental Exchange. Lululemon “Striking is an understatement,” Morgan Stanley analyst Alexandra Straton said of the sports retailer’s strong earnings report last week. The company says the broad-based defeat further strengthens it’s confidence that Lululemon knows how to do better in a difficult macroeconomic environment. Straton also raised her price target to $343 per share from $313 and said she sees a “revalue opportunity.” “Following bearish trading with the broader retail space since mid-August as peer-to-peer reports confirm profit risk/return and guidance for Q222, LULU has bucked the trend. in the space with its Q2 22 report and fiscal year guidance gains,” she emphasized. Straton was particularly intrigued by management’s comments suggesting that consumer behavior had not changed. The analyst concludes her analysis by writing that Lululemon’s valuation is simply too tempting to ignore at current levels. “And we think there’s only space left to run from here,” she wrote. Shares of Lululemon are up 16.2% over the past month. Business Day “Despite the volatile environment, WDAY shines in Q2 with stellar performance,” said Monness Crespi Hardt analyst Brian White in late August following the company’s latest earnings report. company. The on-demand human capital, financial management service provider has had a solid pace at the top and bottom margins. Monness Crespi said investors should be impressed by the company’s performance amid economic uncertainty. During the Workday conference call, which White described as positive, management said the trends looked healthy, with Workday outlining the steps it was taking to address the uncertainty. White says the recession will be a step backwards but the company can get through it. “The business day is braced for a more uncertain environment in H2: FY23, acknowledging that some deals are receiving closer scrutiny and this could lead to longer sales cycles” , White’s August report said. Whatever happens, however, the company expects Workday to emerge in a stronger position. “With the long-term shift to the cloud and broader digital transformation trends, we believe Workday has even more ability to operate in the HCM (human capital mgmt) market… ” he wrote. Shares have gained 3.2% this month. Intercontinental Exchange Rosenblatt analyst Andrew Bond is betting that this will be a “happy ending” for investors in the company’s global financial markets and exchanges. The company recently started covering the Intercontinental Exchange with a buy rating. The stock is down 24% this year, but Bond says he sees minimal downside at the stock’s current valuation, plus some positive catalysts. “We believe Street is looking at the strength of its higher-margin futures and data business, while not giving credit to a defensive equity business,” he said. with some appropriate market structures and regulations”. In addition, Bond wrote that ICE is at the forefront of increasing the value of data as well as the digitization of markets. He added: “While the stock market is far away from the growth curve with cash, options and exchange-traded derivatives largely electronic, fixed income on the other side. later with more room to operate.” Add in an undervalued energy business and Bond says investors should start accumulating shares immediately. “Given past results, we like the setup and believe that as usual, ICE investors will be rewarded,” the company said. AECOM- KeyBanc, Overrated “After the F3Q22 print, we are increasingly confident that through NTM ACM can continue to deliver: 1) steady pre-orders > 1.0x; 2) speed-up revenue growth; and 3) expanding good margins, while maintaining FCF Conversion and reducing outstanding shares. … .ACM has set a nearly three-year record of performance solid quarterly yield (not omitted), its margin profile currently leads the peer group, and management is messaging that there’s more room to run.” Transocean-BTIG, Buy Rating “Train Price” top drill over $400K with more room to run We upgrade RIG to buy (from Neutral) with $8 PT. …. We upgrade RIG to buy and start with $8 PT, thanks improving the intraday rate in the floating market will allow the company to recharge its rigs at a higher rate We note that the Norwegian selling rate is also starting to increase. offshore rig reinforcement period, which will provide strong cash flow and the opportunity to refinance RIG to improve its balance sheet. ” Workday- Monness Crespi Hardt, Buy Review “Despite the volatile environment, WDAY shined in Q2 with stellar execution. …. The business day is prepared for a more uncertain environment in H2: FY23, acknowledging that some transactions are receiving closer scrutiny and this could lead to sales cycles. longer. …. With the long-term transition to the cloud and broader digital transformation trends, we believe Workday has more room to operate in the HCM market (mgmt of human capital)… “Lululemon- Morgan Stanley, Overweight Rating” Featured is an understatement. …. This facilitates ongoing aggressive EPS adjustments and we continue to see a competitor re-rank. -As well as peer-to-peer reports that confirmed profit/return risk and guidance for Q2 22, LULU bucked trends in the space with its Q2 report and bullish fiscal year guidance. Intercontinental Exchange- Rosenblatt, Buy Review “ICE is once again in transition mode making this an execution story… luckily for investors we’ve seen this story before and we are betting on another happy ending. …. We believe that Street is underplaying the power of its higher margin futures & data business, in when no credit is given to a hedged stock trading enterprise with certain market structures and appropriate regulations. …. , options & derivatives are traded on an exchange translation is mostly electronic, fixed income follows with more room to run. … Given the past results, we like the setup and believe that as usual, ICE investors will rewarded. “