Top Wall Street Analysts Like Stocks Like Uber and Shopify

The latest round of market volatility is nothing new to short-term investors.

Indeed, a sell-off led by tech names and growth has spread into predicament leaving the three major averages in negative territory in January.

Analysts make long-term forecasts about the companies they manage, which allows them to look at the stock’s short-term movements in the past. Indeed, some of Wall Street’s top analysts have singled out the names they like best for the long-term, according to TipRanks, which tracks the best-performing stock pickers.

The trend of e-commerce is cooling down and the market share of some players in the field has suffered. Shopify (SHOP) is no exception, and its value has fallen about 50% from its most recent peak in November. To many analysts, a discounted stock price looks appealing on a person’s point of sale platform. sell. (See Shopify stock chart on TipRanks)

One of these upbeat voices is Darren Aftahi of Roth Capital Partners, who is predicting a 30% year-over-year growth in total merchandise value for SHOP’s upcoming earnings. Calling the company a leader in e-commerce, he noted that consumer spending trends are stabilizing and the strong position Shopify holds in its space.

Aftahi rates the stock as Buy and has a price target of $1,400.

Most notably, the analyst discussed Shopify’s recent strategic partnership with Chinese e-commerce giant JD.com. The deal will allow SHOP merchants to “sell directly to Chinese customers through the JD Marketplace” and is expected to open them up to “a new TAM of ~500 million or more JD active customers.” in China.”

By streamlining the merchant barrier to entry into China from 12 months to 3 to 4 weeks, Aftahi is confident that the deal will add to Shopify’s top performance in the second half of 2022.

Financial aggregator TipRanks currently maintains Aftahi at number 222 out of more than 7,000 analysts in its database. His success rate is 39%, and his ratings have returned him an average of 40.7% each.

For Meta Platform (Facebook), the final few months of 2021 are turbulent: Not to mention the number of negative headlines and insights from whistleblower Frances Haugen And after that testimony before legislators about By Meta Algorithms wow some investors.

Monness’s Brian White predicts a turbulent year for Meta, which is expected to post quarterly earnings on February 2. The tech group is also expected to “continue to benefit from the digital advertising trends, join the accelerated digital transformation and innovate in the metaverse.” (See Meta . Platform Website Traffic on TipRanks)

White rates the stock as Buy and assigns a target price of $460.

The analyst noted that ad growth has slowed but maintained a “remarkable” spend rate. Furthermore, he doesn’t predict that FB will come out of the woods just because of its ongoing negative publicity. Its upcoming earnings call will likely also cover hot topics like Apple’s privacy policy, user interaction with Instagram Reels, and e-commerce trends in general.

Despite these issues, White finds FB at an attractive discounted valuation and overall remains bullish on its earnings call.

Out of more than 7,000 analysts, White comes in at 141st. His stock picks have been accurate 66% of the time and have given him an average of 31.1%.

The pandemic is sure to cause a whirlwind of emotions for holding investors Uber Technologies (UBER), but analysts have reverted to their bullish expectations for the stock. At first, the omicron variation caused more panic and enhanced restrictions on mobility, although it now appears that levels are returning to pre-pandemic numbers.

This situation is best put forward by Scott Devitt of Stifel, who has argued that the global recovery in the move sector is looking good and the company expects to perform nearer the upper end of the range. his guide. Uber is expected to announce earnings on February 9 after the market closes and will hold an investor conference the following day. (See Operation of the Uber hedge fund on TipRanks)

Devitt assigned a Buy rating to the stock and stated a price target of $50.

He went on to write that Uber recently revamped its loyalty program, introducing the Uber One membership service. The new iteration of the previous Uber Eats Pass will connect users with benefits found across different businesses, including delivery, grocery, and ride-sharing apps. The move is anticipated to drive increased participation in Uber’s loyalty base and is seen by Devitt as “gradually positive because it strengthens the value proposition over previous products.” .

Furthermore, Uber has been busy integrating its freight capabilities with Transplace, a newly acquired logistics management software company.

Out of more than 7,000 financial analysts, Devitt is rated 335th. The analyst’s stock picks were successful 52% of the time and gave him an average of 23.9% each time.

Until last quarter, the Covid-19 pandemic had been good to HubSpot (HUBS). As soon as news of the omicron variant hit the headlines, stocks began to plummet. However, analysts appreciate the direction of the software company’s marketing, sales and business management. (See HubSpot Insider Trading on TipRanks)

Jefferies’ Samad Samana is one of them, asserting that 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 forecasts for the year.

Samana rates the stock as Buy and has a price target of $800 per share.

The analyst wrote about HubSpot’s strong and sustained growth prospects in 2022, in part due to “business traction and higher engagement rates”. The company has seen many larger enterprises adopt its software and stick with it even as it has scaled itself. In this sense, it is competing with established players like Salesforce.

“Several large customers who previously left HUBS have expressed a desire to return to HUBS,” said Samana, “as a result of its significantly improved product suite and its ability to handle larger, more complex customers.”

TipRanks holds Samana at 386 out of more than 7,000 analysts. His stock options have returned exactly 53% of the time and have an average return of 29.9%.

The pandemic-induced digital transformation has caught up with another cloud-based business and workflow solutions company and sent its value skyrocketing. Like its peers, ServiceNow (CURRENTLY) also dropped significantly from its peak in early November, but still managed to release highest earnings in the fourth quarter. According to Brian Schwartz of Oppenheimer & Co., the stock is resilient in its tags.

The analyst noted strong momentum in ServiceNow’s business, driven by demand for IT services. On this demand, he was encouraged by NOW earnings, writing that “these results should allay concerns that business IT needs are somehow dwindling.” (See ServiceNow . earnings data on TipRanks)

Schwartz rates the stock as Buy and calculates a target price of $660.

Investors should always pay attention when companies provide guidance on Wall Street consensus estimates. ServiceNow has managed to do this despite the continued difficulties of the slowing macro environment over the past two months.

Additionally, Schwartz noted his optimism despite stock price swings, writing that “NOW offers a nice balance of strong revenue growth, expanding margins, and strong margins. high cash flow margins, so that even as the valuation multiplier increases the space, its unique financial profile and appeal across the enterprise’s IT divisions have positioned ServiceNow to outperform other competitors. companies in the same industry.”

He went on to say that ServiceNow “provides investors with a unique proposition among large-cap software stocks.”

Out of more than 7,000 professional analysts in the TipRanks database, Schwartz is ranked 14th. He has successfully ranked the stock 72% of the time, and his options have carried. giving him an average of 51.4%.