Wall Street analysts say buy stocks like Ambarella & Lululemon
A Lululemon shop is passed by pedestrians.
Scott Mlyn | CNBC
Market tensions have only gotten worse with May’s inflation report.
The last month’s consumer price index rose 8.6%This is the largest increase in a single year since December 1981. This reading prompted further worries about a recessionAnd bond yields jumpedOn Friday.
Investors face a difficult situation, but they need to be able to see the long-term and not get distracted by the current volatility. TipRanks ranks Wall Street’s top-performing professionals and has selected stocks that have attractive prospects for the purpose.
Five stocks caught analysts’ eye.
Credo, Fabless chip firm CredoCRDOThe tech sector stock, () has seen gains in the past 2022. It went public in January. (See Credo’s Stock InvestorTipRanks (thoughts and feelings)
Credo is still facing challenges. Covid-19’s resurgence in China caused lockdowns in major cities, including Kunshan. This forced key suppliers to close their doors and further damaged the supply chain for the semiconductor industry. Credo’s Active Electrical Cable Unit sources materials from Kunshan suppliers.
Despite this, the company was able to post better than expected quarterly results due to strong sales of non-Kunshan product. Needham analyst Quinn BoltonAccording to him, investors will consider this a sign that they are resilient. CRDOAbsorbs the shutdown-related effects of strength in non AEC product revenue
Bolton highlighted key assets in the business. Credo’s extensive expertise in analog, DSP and digital design allows them to choose the right technology combination for “high-performance designs at a lower price and with less power.”
Analyst believes this advantage can allow the company to significantly expand its total market for data center over the next three-years, making it one the most rapidly growing semiconductor companies.
Bolton ranks No. 3. Out of over 8,000 financial analysts listed on TipRanks, Bolton ranks No. His stock ratings have been successful 72% of all the time. The average return on his stocks has been 45%.
Semiconductor company Ambarella’s (AMBAThe system-on chips (SOCs), which combine various technologies, deliver high quality images and videos with very low power consumption. The chips are quickly gaining popularity in markets such as autonomous vehicles and the Internet of Things.
It is no surprise that semiconductor companies suffered in this year’s economic downturn. In addition to existing supply-chain problems, Covid’s lockdowns of China in early this year caused further disruptions. AMBA stock shares dropped more than 60% during the year. (See Ambarella Stock ChartTipRanks
Quinn Bolton of Needham examined the earnings performance of the company and noted that the headwinds the company faced during the fiscal first quarter 2023 were likely to continue. The analyst says that the short-term issues are not out of the company’s hands.
Ambarella is facing shipping problems all around the world that are causing inventory buildups. This makes it more difficult for customers to purchase their goods. The lockdowns in China have made this worse, causing delays that can be very costly. Ambarella’sPerformance in the fiscal first quarter 2023. In the guidance for fiscal quarter 2, revenue growth was also slowing down.
Ambarella believes that supply chain problems will cool down in the second half. Bolton chose not to lose sight of the long-term challenges and instead focused on the company’s fundamentals. Bolton reiterated his buy opinion on AMBA, even though he reduced the price target from $175 to $120.
Analyst Ambarella is positive about Ambarella’s CV suite of processors and feels that it holds the key for significant revenue growth as well as share price growth. “We forecast Ambarella’s CVflow products will generate more than 50% of annual revenues by CY23. Bolton said that Ambarella will see a 45% increase in CV-based product sales over the 10-year period.
American TowerAMTThe largest infrastructure REIT,, is an independent operator for wireless and broadcast communication infrastructure. The company’s operations are spread in 22 different countries. American Tower is seeing a rise in the use of 5G technology and other technologies, which supports the need for infrastructure and places to run communication services.
Recent RBC Capital Markets Analyst Jonathan AtkinA few meetings were held with AMT’s management. I compiled some key insights for investors.
Atkin indicated that Atkin believes management will be optimistic. AMTThe company is a leader in Europe, with a strong foundation of partnerships and support from the government, particularly in France, Spain and Germany.
Atkin predicts that AMT will grow in the medium-term when U.S. mobile operators roll out 5G spectrum mid-band. (See American Tower Dividend Date & HistoryTipRanks
The analyst points out that India is experiencing slow growth due to Covid-19, as well as low revenue per unit. Brazil, however, faces similar challenges. These challenges will be addressed by AMT once these markets have stabilized following a successful economic recovery under Covid-19.
Atkin is the number one Wall Street analyst. TipRanks has covered almost 8,000 Wall Street analysts. From a total of 437 ratings, 337 have been successful. He also delivered an average return on stock ratings of 45%
Retailer Lululemon (LULUThe ), has delivered impressive first-quarter 2022 numbersRecent low outlooks for other companies have prompted the release of guidance.
Guggenheim analyst Robert DrbulAfter the publication of its quarterly report, he had interesting insight into Lululemon’s development. Lululemon’s ability to navigate the global supply chain challenges by using air freight for orders, despite the expensive freight rates, was noted by Mr.
Drbul notes that Drbul is very happy with the fact that Drbul has emphasized that Drbul’s company products have limited seasonality. Its strong e-commerce and low exposure to wholesale markets are also a benefit in this current inventory situation. (See Lululemon Risk FactorsTipRanks
Analyst reiterated her support of the LULUEncouraged by its long-term, medium-term business outlook, stock. “We are confident that LULU can continue on its path to quadruple the size of its international operations by the end FY22. This should support continued robust top-line growth and structurally higher operating margins in coming years (digital operating margins in the 40%-plus range), which in our view justifies the shares’ premium multiple,” said Drbul.
Drbul is No. Out of nearly 8,000 analysts that TipRanks tracks, Drbul ranks No. 582. Note that 59% of his ratings were successful, with an average 8.2% return per rating.
Veeva shares (VEEVIn 2022 (due to the wider tech market sell-off),, have plummeted. Yet, it is not experiencing any major impact to its business. Because it is a cloud-computing firm that focuses on two major industries: pharmaceuticals and the life sciences, this company has a low impact.
Hedge funds increased their stakes in shares of the company in March quarter, it was interesting to note. (See Veeva’s Hedge Fund Trading ActivityTipRanks
The quarterly results of the company were published earlier in this month. This beats Street estimates for earnings and revenue per share.
Needham analyst Ryan MacDonald was encouraged by Veeva’s largest deal — a 12-product win with a top pharmaceutical firm during the first quarter. MacDonald stated that while VEEV considers this win to be a temporary event, the deal has the potential for transforming the way customers talk about strategic roadmaps over the long-term.
An analyst also believes that investors should overlook the immediate concerns about Veeva’s cloud-based customer relations management platform. This will allow them to focus on the future, when products like Link and Compass start to gain momentum.
MacDonald did not lose his bullishness. VEEVThe stock has a “buy” rating and a target price of $205 (from $270). MacDonald said that the low price target is based on an “industrywide multiple compression”. Long-term investors should not be concerned.
Veeva’s FY23 outlook could be increased despite currency headwinds. This “highlights Veeva’s durable nature in uncertain macros.”
MacDonald is the No. MacDonald is ranked No. 482 of almost 8,000 TipRanks analysts. His stocks rated by TipRanks have an average return of 14%, with a success rate 49%.