Stock Groups

Wall Street analysts are bullish stocks like Costco & General Motors

[ad_1]

Analysts and investors continue to look at 2021 as the end of the year, and third quarter earnings are rolling out.

Many companies had a great start to this year. They are now in difficult situations to grow at such rapid rates.  

CostcoThe pandemic’s economic storm has been a challenge, but will it be able to continue driving exponential growth in sales and memberships? Companies that offer cloud-computing services like ZscalerThe shift in work trends has seen a significant increase. How will it impact the outlook of economies as they reopen? 

Analysts believe the shortage of semiconductors has caused havoc for both smart electronics and auto manufacturers. General MotorsAnd SonosBoth will see long-term success. The chip maker itself MarvellProjection to experience continued high demand, as well as an accelerated rate of business performance.  

TipRanks tracks top-performing stock analysts and predicts that these stocks will be a hit with them. 

Costco 

You can’t resist free samples! Not many people apparently, as membership renewal rates are at all-time-highs at Costco (COSTThe following is the. The big-box retailer released another impressive round of monthly earnings, with positive metrics on sales, market share, and international expansion. (See Costco Risk FactorsTipRanks 

Peter Benedict of Robert W. Baird delivered his bullish hypothesis on the company, mentioning that “when combined with their loyal member base, accelerating MFI growth profile and defensive sales mix, COST remains a rare mega-cap ‘growth staple’ idea.”  

Benedict reiterated the Buy rating and gave a target price of $520.  

According to the analyst, Costco still beats Wall Street’s estimates despite having difficult reporting. Its gasoline and its food court options, as well as Costco Pharmacy, are the firm’s most important departments.  

Costco has made investments to become a more convenient retailer. This includes improved digital platform features and a vertically integrated logistics delivery system. Costco is still relevant to consumers as e-commerce trends rise.  

Costco clubs located internationally generate higher profits than those in the country. It is expanding its overseas presence and will generate a broader revenue stream. 

Benedict remains at the No. 1 spot on TipRanks. Benedict is ranked No.235 among more than 7,000 analysts. Stock picks by him have had an 82% success rate and an average return of 56.6% per rating.  

Marvell  

Spurred on by increased demand and supply chain challenges, the semiconductor shortage has affected the smartphone and automotive industries for longer than what was initially expected. Companies that produce actual chips, like(*) (Marvell Technology GroupThey are currently seeing strong demand for their silicon and are moving to Cloud-optimized adoption. (See MRVLTipRanks Marvell Blogger SentimentReporting on its advantageous positioning is Quinn Bolton of Needham & Co., who asserted that Marvell has “one of the highest growth rates in large cap semis.” Long-term revenues expansion is expected to surpass its serviceable market. Bolton also expects that it will grow by approximately 50% in the next four year.  

This five-star analyst gave the stock a Buy rating and raised his price target by $75, from $69.  

Accelerating the gains in market share are Marvell’s 5G, data center, carrier, and automotive semiconductor segments. Meanwhile, Bolton believes in the chip manufacturer’s ability to capitalize on the transition to cloud-optimized silicon. Bolton describes the technology as “compute and networking, storage and security elements in die or packaged to offer optimal performance and cost-effectiveness for certain cloud and infrastructure applications.” 

Bolton says Marvell is an ideal partner for enterprises that outsource their chip production. Marvell’s wide range of opportunities makes it a good choice to be a part of any semiconductor investor’s portfolio.  

TipRanks, a financial aggregator, maintains Bolton at No. Bolton is 1 of more than 7,000 expert analysts. His success rate in rating stock stocks has been 83%. The average return on every rating is 82%.  

General Motors  

There are both car companies and companies that make disruptive electric vehicles (EVs) technology. The green tidal wave transformation from traditional combustion engines will either carry automotive firms with it to the shores of profits, or wash them away. General Motors senior management

However, the former is impossible. This company has recently presented its ambitious roadmap to shift its product mix towards EVs and increase its speculative valuation.  GMWedbush Securities Daniel Ives stated that he believes that Detroit’s stalwart, Daniel Ives, is in the midst a major turnaround that will transform the GM story moving forward. He sees a bright decade ahead for the large-cap auto producer, and anticipates it to largely dominate the nascent $5 trillion addressable EV market. (See

TipRanks General Motors Stock AnalysisIves assigned an $85.50 price target to the stock and rated it a bullish Buy.  

The five-star analyst admitted that negative sentiment lingers amongst investors from the Chevy Bolt saga. There are also persistent headwinds from the worldwide shortage of chip technology.

However, he sees these as no more than short-term obstacles that will inevitably be smoothed over by the inevitable EV revolution.  GM.Beyond manufacturing vehicles, Ives expects GM to offer software and services subscriptions for autonomous and assisted driving plans, providing for recurring revenues. The “potential gold mine” of monetization opportunities was calculated by the analyst to eventually result in about $2,000 in extra revenue per car sold.  

General Motors is poised to convert at least 50% of its customers into electric vehicles before the end of this decade. All the company has left to do is execute on its multi-year plan.  

TipRanks rates Ives at No. TipRanks ranks Ives as No. 9 out of more than 7,000 expert analysts. His ratings have been correct 77% of the time, and generate average returns of 54.7%.  

Zscaler  

A highly-rated analyst may not often write, “Investors will get rewarded for holding on to these shares.” But 

(ZscalerThis feat has been achieved by (). The company has been scaling up by aggressively investing on its sales department and is focusing on improving productivity in that area. (See ZSTipRanks Zscaler Insider Trading ActivityAlex Henderson of Needham & Co. wrote highly of the firm, mentioning that its platform and strategy are poised for long-term wins against competition. Many large companies and firms have switched to cloud-based operations during Covid-19. Zscaler has seen rapid growth. It must now continue its performance.  

Henderson gave the stock a Buy rating and set a $345 price target.  

As its earnings comparisons remain difficult to beat, Henderson did note that the stock may experience some short-term consolidation. In order to make sales deals, Henderson noted that the company has been increasing its expenditure on business travel.  

Despite these acute factors, he sees huge long-term market outperformance from Zscaler’s security offerings, that is, once the operating leverage and growth from investments equalize.  

Henderson is No. From over 7,000 professionals, Henderson ranks No.87. TipRanks calculates that his ratings are successful 68% out of over 7,000 professional analysts, which has led to average returns 41.6%.  

Sonos  

A lucrative settlement can be reached in court when intellectual property disputes are being fought, particularly when the challenger is a small company. Sonos (in early 2020)

Alphabet was (accused)SONO() for infringing upon a number of patents. A judge in mid-August sided with the smart speaker company, but after a counter suit a near-term settlement seems unlikely. A subsequent sell-off in Sonos shares has resulted in a discounted yet fundamentally sound stock.  GOOGLBrent Thill of Jefferies Group identified this attractive buying opportunity in his recent report on the stock, writing that he sees the valuation now as too low, and that Wall Street consensus estimates for its guidance as conservative. (See

TipRanks Sonos Hedge Fund Trading ActivityThill assigned the stock as a Buy and gave a target price of $50.  

At press time, the speaker company has seen shares fall about 20% from their late-August peaks. Thill doesn’t see a quick solution in the litigation but a favorable outcome could help the long-term.  

The five-star analyst believes in the company’s financial momentum, adding that “We believe SONO will continue to achieve OPEX leverage from a higher sales volume, and believe their order backlog will allow them to realize further sales & marketing efficiencies.” It is expected that the company’s recent price rises will result in an increase in its revenues.  

Conservative guidance may provide an opportunity for a simple beat and increase in earnings. The company’s ability and willingness to complete its orders on time, as well as its capacity to meet heavy demand, would play a major role in this. 

SonosThill’s only caveat on the decline in valuation was the difficulty of catching a falling knife. He would anticipate upside from an overreactionary sale if shares stabilized around support levels.  

TipRanks ranked Thill No. Thill ranked 129 among more than 7,000 financial analysts. Thill’s ratings have been a huge success, with 69% of his clients being successful and an average of 36% returning their money.