Top Wall Street analysts predict these stocks will experience sustained growth in the long term.
The past week has been marked by chaos, not only for the stock market but also for the world. The Russian invasion of Ukraine has caused turmoil, and there is a possibility of a return to a Cold-War era world order. Additionally, markets have been volatile due to rising energy prices resulting from sanctions on Russia and uncertainty about inflation.
It is not always profitable to trade in the short term, especially now. Therefore, we have examined the opinions of Wall Street's most accurate analysts on these five stocks. Let's examine them more closely.
Petco
Despite the decline in Petco's stock following the emergence of the omicron variant of Covid-19 in late November, the number of new pet owners has continued to rise since the start of the pandemic. Petco is set to release its quarterly earnings on March 8, and Zachary Fadem of Wells Fargo predicts an upside.
The analyst predicts that Petco will surpass Wall Street consensus estimates and has identified numerous opportunities for long-term monetization. He emphasized the strong demand within the industry and highlighted the overlooked potential of Petco's stock by investors. (Check out Petco News Sentiment on TipRanks)
WOOF was given a Buy rating by Fadem, with a predicted price target of $30.
Petco's veterinary services segment has been performing well, with strong business results from its loyalty program and fresh food offerings. In comparison to an online competitor, Chewy (CHWY), Petco's web traffic has improved while Chewy's has weakened over the first four weeks of the first quarter.
Petco's financial setbacks due to supply chain challenges may be mitigated by passing on costs to consumers and premiumizing products.
The analyst views a promising opportunity to enter the LT market due to steady category growth, strong underlying share gains, and projected upward movement.
Fadem ranks 77th among more than 7,000 analysts on TipRanks, with a 62% success rate and an average return of 41.3%.
Apple
Apple, a company frequently praised for its expansion and market share, may receive similar acclaim for withdrawing its offerings from Russia. The West has imposed sanctions on Moscow due to its invasion of Ukraine. Now, tech firms are joining in, and investors can easily comprehend and evaluate Apple's potential losses from this decision.
According to Dan Ives of Wedbush, the development may result in revenue losses of up to 2% for AAPL. The company does not have any physical storefronts in Russia and sells its products through third-party retailers. (Check out Apple Stock Charts on TipRanks)
Ives gave the stock a Buy rating and set a price target of $200.
If more large tech companies follow suit, the analyst wouldn't be surprised. Apple has already removed Russian state-owned and propaganda-based apps from its mobile store and stopped providing traffic intelligence on its Maps platform.
Ives explained the importance of cybersecurity due to the escalating threat level from Russia, which is expected to result in an increasing number of attacks as retaliation against the West.
Ives is ranked 222 out of over 7,000 analysts on TipRanks. He has been correct in his stock picks 60% of the time and has returned an average of 29% from his ratings.
Airbnb
Airbnb reported impressive quarterly results last month, solidifying its position as an industry leader. Despite repeated restrictions on mobility and leisure travel, the company has successfully executed its business model since going public in late 2020. (See Airbnb Estimated Monthly Visits on TipRanks)
With the decline of Covid-19 cases worldwide, Airbnb is poised to benefit as travel resumes. Ivan Feinseth of Tigress Financial Partners predicts that the company can easily expand and add supply at a low cost, and it has been investing in innovations to simplify the onboarding process for new hosts. Additionally, the company has demonstrated its ability to adapt to sudden changes in consumer preferences and trends, whether it's long-term stays in rural areas or short weekend urban getaways.
Feinseth upgraded the stock to a Buy and increased his price target from $206 to $214.
Despite the year of lockdowns and increased stay-at-home trends, Airbnb still managed to generate 78% in revenue year-over-year. Although the pandemic may be waning, the positive consumer trends it created for ABNB are some of the company’s most popular. For example, Feinseth wrote that half of total bookings in the fourth quarter were for seven or more days.
The analyst stated that ABNB's growth potential is driven by its ability to increase capacity through new hosts, invest in new technologies, collaborate with travel service providers, and expand internationally.
Feinseth's stock ratings have resulted in success 65% of the time and an average return of 29.4%.
Salesforce
Despite a recent decline in share prices, the fundamental business of the cloud software giant (CRM) remains sound.
According to Brian White of Monness, Crespi, Hardt & Co., Salesforce is well-positioned to take advantage of the accelerated digital transformation due to its stronger and more relevant platform, the integration of Slack, and the economic recovery.
White kept his price target of $328 for the stock he rated as a Buy.
The recent earnings report of CRM software firm demonstrated its reputation with a 26% increase in revenues year over year, according to analyst White, who noted strength across various industries, regions, and product lines.
Salesforce's acquisition of Slack has generated a combined growth of 23.5% with its high-profile acquisitions of Tableau and MuleSoft, and the company continues to impress investors with its performance.
Although the current tech sell-off may continue for an unforeseeable amount of time, White acknowledged that near-term volatility is to be expected.
Out of over 7,000 analysts on the TipRanks database, White ranks 190th. He has been correct in his stock ratings 64% of the time and has earned an average return of 29.1% per stock.
Splunk
SPLK recently released its latest earnings report, showing a 69% increase in cloud revenue year-over-year and providing strong guidance. Additionally, the company announced the appointment of a new CEO.
Gary Steele, the new CEO of Splunk, is expected to enhance the company's vision execution, as per Jonathan Ruykhaver of Baird. Additionally, Ruykhaver highlighted Splunk's competitive edge over its competitors due to its unique platform differentiation. (Check out Splunk Risk Factor Analysis on TipRanks)
Ruykhaver gave a Buy rating to the stock with a price target of $135.
Splunk's diverse offering is a significant competitive advantage, as it includes an extensive data platform, full-stack observability, and security and coverage across hybrid cloud to edge.
The data analysis organization software firm reported higher-than-expected free cash flow and highlighted metrics that suggest strong bookings in its earnings report.
Ruykhaver is ranked No. 16 among over 7,000 expert analysts in TipRanks’ database. He has a 78% accuracy rate when selecting stocks and has an average return of 56.3% on each pick.
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