Despite investor uncertainty, top Wall Street analysts predict long-term growth potential for these stocks.
The three major indexes recorded gains during another volatile week for investors.
Despite markets appearing to recover from initial fears, underlying concerns persist. The ongoing conflict in Ukraine, high inflation, and rising fuel costs continue to impact consumers' financial stability.
Investors should concentrate on companies with strong fundamentals during turbulent periods, as advised by Wall Street experts who have identified those with long-term potential, according to Tipranks.
Here are five names to follow this week.
Riot Blockchain
Bitcoin and its publicly traded mining company counterparts, such as Riot Blockchain (RIOT), have maintained their value over the past month.
Despite the miner's recent struggles due to bitcoin's declining value, the company has continued to expand its infrastructure and improve its vertically integrated capabilities.
Darren Aftahi of Roth Capital Partners has pointed out the accelerating machine-deployment rate and recent land purchases as indicators of future growth.
Aftahi gave the stock a buy rating and set a price target of $46.
Despite Riot Blockchain's underperformance in the last quarter, the analyst believes that the company's lower revenues were due to the lack of deployment in December. However, he considers this a "speed bump" and advises that the company should increase its deployment and mining operations as its infrastructure projects come online.
ESS Metron, the recently acquired infrastructure hardware provider, is expected to boost RIOT's vertical integration, according to Aftahi. He stated that it could "add materially to total revenue given its trialing nine-month revenue." Aftahi added that ESS Metron will provide "priority access to infrastructure components at cheaper prices" to Riot Blockchain.
Aftahi is ranked No. 378 on TipRanks, with a success rate of 38% when rating stocks and an average return of 32.1% per stock.
Cloudflare
In response to Russia's conflict with Ukraine, Western organizations are strengthening their cybersecurity in preparation for an increase in hacking attempts.
Several high-growth names are poised for success in the highly competitive cybersecurity space, including web infrastructure company (NET). The company has been steadily gaining new customers.
Shaul Eyal of Cowen stated that "NET's end-to-end scalable cloud native platform is set to disrupt the networking, security, and telco markets, which represent a total addressable market of approximately $100 billion. With its potential to capture a significant portion of the market, NET is positioned for success." (Source: Cloudflare Estimated Monthly Visits on TipRanks)
Eyal rated the stock a buy and declared a price target of $250, stating that this was the highest valuation in regard to a company's expected FY23 revenues among all his cybersecurity coverage.
Eyal, the CEO of Cloudflare, stated that the company has been generating about half of its revenues from large enterprise customers and is prepared to compete with major players like AWS.
The analyst praised NET for offering pro bono services to critical infrastructure, despite having a marginal exposure to losses in Russian markets due to sanctions.
Eyal, with a 76% accuracy rate and an average return of 56.3%, ranks 14th among nearly 8,000 professionals in the TipRanks database.
Nike
Despite the challenges faced by the retail industry due to lockdowns, supply-side and logistical constraints, and inflationary pressures, Nike (NKE) has recently surpassed Wall Street expectations for revenue and earnings per share. Additionally, the company is adapting to changing consumer trends by shifting its wholesale business.
The shoe and athletic equipment manufacturer is facing supply and inventory issues due to high demand this year. Additionally, Nike has been expanding its partnerships in Chinese markets, as reported by Robert Drbul of Guggenheim in his recent report. (Check out Nike Stock Charts on TipRanks)
Drbul gave the stock a buy rating and set a price target of $195.
Despite declining year-over-year revenues in China, Drbul believes that the analyst's statement that "China's progress will lead it into a new era of marketplace transformation" is true. Furthermore, Drbul believes that " has the most innovative brand, platforms, and product line to succeed in that market."
Nike's industry-leading position should enable it to outperform and outperform its competitors in the retail industry.
Despite temporary difficulties, Drbul believes that Nike will overcome them and become even more valuable in the future.
Out of nearly 8,000 analysts on TipRanks, Drbul ranks 111th. He has a 68% accuracy rate when selecting stocks and an average return per rating of 27.9%.
Adobe
Despite a mixed reception to its quarterly earnings results, the company, which is an industry behemoth, remains strong despite slowing business trends and soft guidance.
Brian Schwartz of Oppenheimer predicts that the software firm's decent performance could improve as the year progresses, thanks to digital media price increases and healthy demand. Additionally, the company's annual recurring revenue metrics are promising.
Schwartz gave a buy rating to the stock with a target price of $560.
The analyst highlighted Adobe as a leader in digital creative and marketing tools and services, with a proven track record of success as a cloud platform. He also noted the company's diverse product portfolio, which has contributed to its substantial scale, profits, and growth trajectory.
Schwartz, with a success rate of 71% and an average return of 50.8% on each rating, ranks No. 20 among the almost 8,000 analysts on TipRanks.
Nvidia
Nvidia (NVDA) is expected to benefit significantly from the metaverse and cloud transformation, and its valuation reflects this.
Although the stock's shares recently rebounded, the company now appears more attractive since its prices have decreased from their November highs.
Nvidia recently showcased its $1 trillion total addressable market at its investor day conference, while highlighting its innovative products from its pipeline.
Vijay Rakesh of Mizuho Securities pointed out in his recent report that the company's new networking portfolio supports its focus on providing a comprehensive end-to-end Data Center stack. This stack includes software, GPU, Grace GPU, Bluefield DPU (via Mellanox), and Switch, according to Rakesh.
The analyst gave a buy rating to the stock and set a price target of $345.
Nvidia has been gaining considerable market share in the advanced driver-assistance systems market, with its penetration expected to increase from 10% to 50% in the next eight years. Rakesh estimates that this total addressable market could be worth up to $300 billion, making it a significant growth driver for the future. (See Nvidia Hedge Fund Activity on TipRanks)
Rakesh ranks No. 33 out of almost 8,000 expert analysts. He has been accurate in picking stocks 71% of the time and has returned an average of 47.9% when doing so.
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