These stocks are expected to perform well in earnings, according to top Wall Street analysts.

These stocks are expected to perform well in earnings, according to top Wall Street analysts.
These stocks are expected to perform well in earnings, according to top Wall Street analysts.

Investors may face more challenges in the stock market as it has not been performing well so far in 2022.

Recent memory has seen the macro environment as one of the most volatile. Investors are concerned about inflationary fears, labor shortages, and the Federal Reserve's decision to aggressively withdraw its bond buying.

TipRanks, a financial data aggregation website, offers investors the tools they need to navigate the market. Despite the challenging macroeconomic conditions, Wall Street's top analysts are highlighting their most optimistic investment ideas.

Verint

As a result of the pandemic, the trend towards cloud-based solutions has accelerated, and Verint Systems (VRNT), a software and intelligence provider, is expected to benefit.

In a recent report, Samad Samana of Jefferies highlighted the underappreciated progress of Verint in modernizing and improving its technology stack and product portfolio. He emphasized the flexibility of Verint's infrastructure, which can be deployed across multiple cloud providers, including AWS, Azure, and Google Cloud, as well as private/hybrid data centers.

Samana gave a Buy rating to the stock with a target price of $62.

The analyst observed that the company's ability to serve both legacy and cloud-native customers, as well as its easily adaptable cloud solutions software, would likely result in strong retention levels and discourage churn. (See Verint Systems Hedge Fund Activity)

Verint enables its vendors to collect data on their customer interactions, particularly with "Agent Assist," an AI tool that enhances productivity. By acquiring and merging companies, Verint has improved its omnichannel capabilities, making it more attractive to potential vendors.

Samana is ranked No. 363 on TipRanks among more than 7,000 analysts. His stock picks have been successful 57% of the time and have yielded an average return of 34.8% per pick.

Amazon

Despite a decline in consumer spending and challenging earnings comparisons, Amazon's (AMZN) shares have been impacted. However, with supply constraints projected to ease and Amazon's investments in logistics and fulfillment infrastructure expected to yield returns, analysts are optimistic about the company's prospects. (See Amazon Risk Factors on TipRanks)

JPMorgan's Doug Anmuth recently published a bullish report, citing reaccelerating e-commerce trends and a successful holiday shopping season. Additionally, Amazon Web Services remains the dominant player in the cloud-computing market.

Anmuth gave the stock a Buy rating and set a price target of $4,350.

The analyst has modestly reduced his estimates for Amazon, but he believes that doing so will help re-risk shares and make AMZN a cleaner story to own through 2022. He anticipates that the company's e-commerce segment will benefit from yearlong expansions in transport and delivery mediums.

Amazon has never been so close to so many of its customers.

Amazon, as the market leader in e-commerce and public cloud, may increase Prime membership prices and fulfillment fees, thereby raising revenue. Additionally, Anmuth considers Amazon's AWS growth to be sustainable.

Anmuth is ranked 155th out of over 7,000 analysts. He has a correct rating for stocks 62% of the time, and his ratings have resulted in an average return of 32.4% each.

Tesla

While TSLA is currently the leading electric vehicle manufacturer, the company is now targeting market share from more established original equipment manufacturers. As a result, it will be crucial to monitor TSLA's performance relative to legacy automakers over the next two years, rather than comparing it to smaller EV companies, according to Philippe Houchois of Jefferies.

The analyst is more focused on Tesla's future success and believes that increasing production will be a key factor. The company is expected to add significant supply in February and April with its new gigafactories in Austin and Berlin. (Check out Tesla Stock Charts on TipRanks)

Tesla was given a Buy rating by Houchois and a bullish price target of $1,400 per share.

TSLA's long list of unfilled orders indicates confidence in long-term demand and revenues, despite the EV producer's backlog of orders soaring to considerable levels.

The analyst stated that Tesla's business model may enable it to generate cash more quickly than its ability to develop new products and expand capacity.

Tesla's quarterly earnings results on Jan. 26 may be of interest to Houchois, as the firm may validate its strong profits and provide updates on the Cybertruck or a more affordable sedan model.

Out of over 7,000 professional analysts, the analyst ranks No. 244. He has a success rate of 70% and an average return of 41.9% on his picks.

VMware

There are indications that shares of cloud-computing company VMware (VMW) may experience a breakout. (See VMware Earnings Date and Reports on TipRanks)

Brian White of Monness discussed several reasons why the stock may experience growth, including the company's distinctive cloud value proposition and appealing valuation.

He changed the stock rating from neutral to Buy and set a price target of $153.

White anticipates that these strategic moves, including investments in organic innovations, acquisitions, and cloud partnerships, will serve as the foundation for the company's next phase of growth in business performance.

Despite not being able to take advantage of the digital transformation that helped other software companies, the analyst believes that VMW's long-term prospects have been strengthened by the overall trend. He is currently optimistic about its market position.

The analyst described VMware as a flexible third-party player in the cloud industry, capable of working with multiple established cloud providers and positioning itself as a neutral Switzerland-like option.

Currently, White is ranked No. 111 among more than 7,000 financial analysts. His stock picks have been successful 74% of the time and have resulted in an average return of 37.1%.

Walmart

Since the start of the Covid-19 pandemic, Walmart (WMT) has expanded its customer base and may be able to maintain its performance despite rising gasoline and inflationary costs. (Check out Walmart's website traffic on TipRanks)

According to Robert Drbul of Guggenheim, despite challenging consumer spending environments, is well positioned to continue benefiting. He was not concerned about inflationary pressures, gas prices, and other difficulties brought on by persisting Covid variants. However, he highlighted "lapping stimulus benefits and the expiration of child tax credits" as possible negative catalysts.

Drbul rated the stock a Buy and set a price target of $185, considering it one of his top ideas.

As gasoline prices increase, shoppers may consolidate their trips to Walmart into larger purchases or shop online. Walmart's physical footprint and online presence are seen as a "winning combination" by him. When costs rise, shoppers may look to save even more by buying a broader range of products from the retailer.

The analyst is confident in Walmart's strong business model, which can withstand potential drops in consumer spending. He believes the company is immune to disruptive macro forces and trends and sees the share price as having a favorable risk-reward ratio.

TipRanks has ranked Drbul 89th out of over 7,000 analysts. He has a success rate of 70% and his stock picks have yielded an average return of 29.8%.

by Brock Ladenheim, Tipranks.com

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