People wear protective masks in front of Uber Technologies Inc.’s headquarters in San Francisco, California, USA, on Wednesday, June 9, 2021.
David Paul Morris | Bloomberg | Getty Images
The recent onslaught of market volatility has been nothing short of stomach-churning for short-term investors.
In fact, a sale led by technological names and growth has spread to a malaise that has left the three major averages in negative terrain for January.
Analysts make long-term projections of the companies they cover, enabling them to overlook the short-term fluctuations of equities. In fact, some of Wall Street’s top analysts have pointed out the names they like best for long-term games, according to TipRanks, which tracks the top-performing stock voters.
E-commerce trends have been cooling, and some players’ shares in the space have suffered a bit. Shopify (STORE) is no divergent, and has seen its valuation fall around 50% from its most recent peak in November. To many analysts, the reduced stock price looks attractive on the trading platform. (See Shopify stock charts on TipRanks)
One of these bullish voices is Darren Aftahi of Roth Capital Partners, who expects a 30% year-on-year growth in the gross value of SHOP’s upcoming earnings. He called the company a leader in e-commerce and noted stabilizing trends in consumer consumption and the strong position Shopify has in its field.
Aftahi rated the stock as a buyout and set a price target of $ 1,400.
Most importantly, the analyst discussed Shopify’s recent strategic partnership with Chinese e-commerce giant JD.com. The agreement will allow SHOP retailers to “sell directly to Chinese customers through the JD Marketplace,” and is expected to open them up to “a new TAM of JD’s ~ 500M + active customers in China.”
By streamlining the trade barrier for access to the Chinese market from 12 months to 3 to 4 weeks, Aftahi is confident that the agreement will add to Shopify’s top line for the second half of 2022.
Financial aggregator TipRanks currently maintains Aftahi at a ranking of # 222 out of more than 7,000 analysts in its database. His success rate is 39% and his ratings have given him an average of 40.7% per.
For meta-platforms (FB), the last few months of 2021 were tumultuous: Countless amounts of negative headlines and insights from whistleblower Frances Haugen and subsequent testimony before lawmakers on Meta’s algorithms scared some investors.
Brian White of Monness predicts a no less turbulent year for Meta, which is expected to announce quarterly results on February 2nd. The technology conglomerate is also expected to “continue to benefit from the digital advertising trend, participate in accelerated digital transformation and innovate in the metaverse.” (See Meta Platforms website traffic on TipRanks)
White rated the stock as a buyout and allotted a price target of $ 460.
The analyst noted that ad growth had slowed but still maintained a “respectable” consumption pace. Moreover, he does not expect FB to be out of the woods yet in terms of its ongoing negative publicity. Its upcoming earnings calls are also likely to include hot topics like Apple’s privacy policies, user engagement with Instagram Reels and general e-commerce trends.
Despite these issues, White FB looks at an attractive discounted valuation and generally remains positive with its earnings.
Out of over 7,000 analysts, White stands as No. 141. His stock choices have been correct 66% of the time and have given him an average of 31.1%.
The pandemic certainly caused a roller coaster of emotions for investors with Uber Technologies (UBER), but analysts have returned to their bullish expectations for the stock. Initially, the omicron variant caused more panic and increased restrictions on mobility, although it now appears that levels are returning to pre-pandemic numbers.
This situation was put best by Scott Devitt of Stifel, who argued that the global recovery in mobility looks healthy and that the company expects to perform close to the higher end of its guiding range. Uber is expected to announce earnings on February 9 after the market closes and will hold an investor conference the following day. (See Uber Hedge Fund activity on TipRanks)
Devitt assigned a Buy rating to the stock, declaring a price target of $ 50.
He went on to write that Uber has recently renewed its loyalty program after introducing its Uber One membership service. The new iteration of its former Uber Eats Pass will connect users with benefits found across the corporate firms, including its delivery, grocery and rideshare apps. This move is expected to increase engagement in Uber’s loyal base and is considered by Devitt to be “step by step positive as it strengthens the value proposition relative to the previous offering.”
Furthermore, Uber has been busy integrating its freight capabilities with the newly acquired Transplace, a logistics management software company.
Of more than 7,000 financial analysts, Devitt is rated No. 335. The analyst’s stock choice has turned successful 52% of the time, averaging 23.9% per share.
Until the last quarter, the Covid-19 pandemic had been good for HubSpot (HUBS). As soon as the news of the omicron variant hit the headlines, the stock began to plunge. Nevertheless, analysts appreciate the direction that the marketing, sales and business management software company is taking. (See HubSpot Insider Trading activity on TipRanks)
Samad Samana of Jefferies is one of those in the crowd who claims the stock “remains one of our favorite mid-cap names.” He noted that the end of 2021 and the first few weeks of 2022 provide promising projections for the year.
Samana rated the stock as a buyout and issued a price target of $ 800 per share.
The analyst wrote about a sustained and strong growth outlook for HubSpot in 2022, in part because of its “business strength and higher adhesion rates.” The company has seen several larger companies take their software into use and stick to it, even after they themselves have scaled up. In this sense, it struggles with established players like Salesforce.
Samana said that “some large customers who previously migrated away from HUBS are expressing interest in moving back to HUBS because of the significant advances in the product package and the ability to handle larger, more complex customers.”
TipRanks holds Samana No. 386 out of over 7,000 analysts. His stock choice has returned correctly 53% of the time and has an average return of 29.9%.
The pandemic-induced digital transformation captured another cloud-based business and enterprise with workflow solutions and skyrocketed its valuation. Like its peers, ServiceNow (NOW) also fell significantly from the peaks in early November, but still managed to release first-quarter earnings for the fourth quarter. According to Brian Schwartz of Oppenheimer & Co. the stock has a possible recovery in the cards.
The analyst noted a robust momentum in ServiceNow’s business, driven by demand for IT services. In terms of this demand, he was encouraged by NOW’s earnings, writing that “these results should alleviate the concern that the company’s IT demand is somehow falling apart.” (See ServiceNow earnings data on TipRanks)
Schwartz rated the stock as a buyout and calculated a price target of $ 660.
Investors should always pay attention when companies put guidance over Wall Street consensus estimates. ServiceNow did this despite its continued headwinds from the slower macro environment over the past two months.
In addition, Schwartz noted its bullishness despite stock price fluctuations, writing that “NOW offers a good balance between strong top-line growth, margin expansion and high cash flow margins, so that even if valuation multiples were to be further compressed across space, its unique economic profile and anchoring on across the company’s IT stacks, ServiceNow is positioning to outperform its growth partners. ”
He went on to say that ServiceNow “provides investors with a unique offering among software stocks with large companies.”
Out of over 7,000 professional analysts in TipRanks’ database, Schwartz is ranked No. 14. He has been successful in valuing stocks 72% of the time, and his choice has given him an average of 51.4%.