Wall Street analysts say buy stocks like Tesla & Intel
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Netflix can be seen in their Hollywood headquarters.
Lucy Nicholson | Reuters
The new year began on a rough note for stocks as investors faced rising Omicron case numbers, increased bond yields, and tightening monetary policies by the Federal Reserve.
This can create confusion even for seasoned investors as they plan for the future. TipRanks provides a wealth of financial tools that allow investors to see past short-term volatility.
Wall Street analysts love these five stocks that have strong long term potential.
Intel
It has been a time of great demand for specialized semiconductors, due to the rapid increase in e-commerce sales and high-tech application growth across almost all sectors. Although the majority of 5nm wafers that are used to manufacture the chips were developed in East Asia foundries, Intel (INTCThe company (() is trying to fill that domestic void. Chief Executive Officer Pat Gelsinger led the pledge of $25 billion-$28 billion for investments in new foundries and several other initiatives. Analysts are taking notice.
One of those analysts is Ivan FeinsethRecent statements by Jeremy outlined a number of reasons why he is more bullish. Intel announced that it would take Mobileye, its advanced driver-assistance system subsidiary, public. This will allow for INTC to gain momentum. (See Intel Stock AnalysisTipRanks
Feinseth gave the stock a Buy rating and increased his price target from $68 to $72
Analysts believe that the Mobileye IPO will unlock potential shareholder value and provide additional capital to continue investing in growth projects. It also strengthens the partnership between the two companies in AV technology innovation. According to him, the IPO is expected to take place in summer 2022.
Intel is also collaborating with other companies to create more innovative semiconductors. The recently launched Intel Foundry Services, (IFS), will offer cutting-edge manufacturing expertise to other companies.
Feinseth stated that Intel is expected to regain its former dominant position within the cloud infrastructure and data center markets.
TipRanks has Feinseth ranked #50 of over 7,000 total analysts. He has a 74% accuracy rate with stock selections and an average return of 37.3% per stock.
Coursera
Educational tech was another sector that saw its valuations soar due to the growth of their users. Investor interest shifted away from more closely linked investments as the vaccine rollouts advanced. One such stock is Coursera (COURSince going public in the early 2021, a valuation of ) has fallen by 45%. A top analyst now sees an opportunity for a significant discount.
Coursera being named one of his top choices in Ed Tech by the firm for the New Year Ryan MacDonald of Needham & Co. published a bullish report on the stock. He argues in it that the stock’s key businesses are poised to deliver high levels of performance for this year. (See Coursera Insider Trading ActivityTipRanks
MacDonald assigned the stock a buy rating, with a target price of $45.
According to the analyst, the increased budgets of the company for talent retention will enable the company’s enterprise segment to keep growing. Coursera also invested in expanding its product range. MacDonald expects that Coursera’s customers will be more loyal to the firm by adding programs such as LevelSets or SkillSets.
COUR also plans to add more content to the Degrees platform. It will be offering 35 live courses in addition to 24.
According to the analyst, the stock has been “compressed substantially since March 2021’s IPO. Education technology companies warranted premium valuations.” The analyst now sees the share price as an attractive entry point.
MacDonald ranks #439 among over 7,000 analysts. He has a success rate of 52%. His ratings average return 30.6%.
Apple
Recently, the world’s largest company in terms of market capital reached a new milestone: a valuation of $3 trillion. Its massive product cycle led the iPhone 13 has just finished. Apple (AAPLThe company () has seen a huge demand and is achieving record-breaking sales. All of this is in face of an international semiconductor shortage that mainly affects smartphone makers.
He reiterated his confidence in the stock’s future. Dan IvesWedbush Securities, who suggested that Apple’s upward momentum will be aided by a more efficient supply chain, as shortages of components and chip chips ease in 2022. The company’s Services sector is growing and the pipeline products innovations are all reasons for optimism. (See Apple Website TrafficTipRanks
Ives gave the stock a Buy rating and set a $200 price target.
According to the analyst, consumer demand will outpace supply by 12,000,000 units and Apple has sold more than 40 million units in this holiday season.
Ives projects a market of approximately $1.5 trillion for its Services business. There are many opportunities to make money through the “Apple golden installed base,” which is already poised to reach $100 billion in 2024.
Apple announced an automotive product for 2025 in addition to its iPhone. It could be a way for Apple to gain market share against other emerging electric car players. Ives revealed that Apple’s highly anticipated AR headset Apple Glasses will be available in the second half of 2018, giving Apple exposure to new revenue streams.
Ives ranks #60 among more than 7,000 financial data analysts. He has had success with his ratings 74% of time and have averaged 51.8% in returns.
GoDaddy
Everybody needs a site in this digitally-transformed world. Publicly traded domain registrars are however available. GoDaddy (GDDY() has been in relative stagnation for the past year and a quarter, up until recent. Starboard Value, activist investor acquired a 6.5% stakeIt noted that the shares had been discounted and represented an “attractive investment opportunity”, according to its filing.
His hypothesis is disclosed Brent ThillJefferies shared Starboard’s bullish sentiment and said that GoDaddy is a top value play for web site builders. GDDY outperformed the other tech play, unlike many others. S&P 500 (SPX Nasdaq Composite (NDXThis analyst however sees it as an additional reason to purchase in. (See GoDaddy Risk AnalysisTipRanks
Thill assigned $110 as the price target and rated this stock Buy.
Thill stated that GDDY’s “consistent execution”, double-digit organic revenues growth, strong uFCF generation, and attractive valuation are what make it appealing. Thill is optimistic even though shares rose more than 8% after the news about the acquisition.
Additionally, GoDaddy’s investment in innovation through 2021 is expected to be a tailwind as 2022 advances.
Two years ago, the relatively young CEO has focused on product innovation, especially in Hosting and Presence and payment.
Thill has been rated #314 of more than 7,000 analyst experts. His success rate is 60% and his average returns are 28.2%.
Netflix
The streaming wars heat up Netflix (NFLXThe stock has cooled. Both the production company and streaming service have had a difficult two-months. Investors are worried about its international profitability and poor engagement data. However, most analysts are still bullish.
StifelNicolaus is one of them. Scott DevittAccording to, despite investor concerns, the company had done well in releasing popular content and has an impressive pipeline that will allow the company to move away from only offering video products. (See Netflix Hedge Fund Trading ActivityTipRanks
Devitt gave the stock a Buy rating and set a $660 price target.
According to the analyst, Netflix is now looking at video games and other visual effects possibilities beyond video content streaming. It is looking for new revenue streams to increase its competitiveness and differentiation from the other streaming services.
He remains optimistic about NFLX’s long-term prospects. Devitt calculated that it will grow its subscribers by 50% in 2025, and to 100% in 2030.
Devitt attributes recent share price declines to an investor’s shift away from tech stocks and growth, and to “heatening investor focus upon new streaming competition/utility alternatives.” He isn’t concerned about the fundamentals of Netflix.
Devitt, for his hard work, currently ranks #177 of over 7,000 analysts who are vying to be the best. Devitt’s ratings have been a success 62% times and his returns have averaged 35.3%
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