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Top Wall Street Analysts Say Buy Costco & Cigna


Friday’s rally has offered investors some respite from the latest stock market turmoil, but more volatility is likely ahead.

A continued drop in inflation didn’t help either, and the Federal Reserve’s move to raise interest rates has created additional uncertainty.

Top Wall Street experts are reminding investors to look through the chaos and set long-term investment goals. Analysts are picking out their favorite stocks to weather the storm, according to TipRanks, which ranks Wall Street’s best performing professionals.

Here are five stocks that analysts appreciate this week.

Coursera

Coursera (COURT) offers online courses covering a wide range of fields and qualifications, including degree programs. It targets individuals and businesses, including companies looking to upskill their workforce.

Coursera partners with industry experts and universities to deliver course content. Customers can purchase course certificates individually or purchase a subscription. Coursera’s revenue grew 36% year-over-year to $120.4 million in the first quarter of 2022, beating consensus estimates of $116.7 million. (See Coursera’s Blogger Love on TipRanks)

Coursera couldn’t avoid the sell-off that hit stocks across the board. However, those who buy at a discount can get a lot. Needham’s Ryan MacDonald attended Coursera’s recent annual conference and was convinced that stocks offer excellent long-term investment opportunities. In a recent report, the analyst pointed out that the discussions at the conference provided an implied outlook for growing opportunities across Coursera’s segments.

MacDonald rates the stock as a buy with a target price of $32.

In the consumer segment, Coursera is expanding its offering of professional certifications with high gross margins. The strategy will support revenue growth and margin expansion, the analyst said. According to MacDonald, in the enterprise segment, Coursera is introducing innovative services and free add-ons that will help them win new customers while expanding their wallet market share.

Out of the nearly 8,000 analysts in the TipRanks database, MacDonald is ranked at number 545. His success rate is 47%, with an average return of 12.5% ​​per review.

Technology ZoomInfo

ZoomInfo (ZI) sells access to valuable database information that companies rely on to market and recruit talent. For example, its TalentOS platform allows companies to recruit more efficiently.

In the first quarter, ZoomInfo beat consensus estimates on its top and bottom lines. The company continues to offer an upbeat outlook for the second quarter and the full year. (See Earning data from ZoomInfo on TipRanks)

Despite strong quarterly results and upbeat guidance, ZoomInfo’s stock has fallen. According to analyst Raymond James Brian Petersonsell off in ZoomInfo is a lucky draw for investors with a long-term perspective because they can buy stocks cheaply. In a recent report, the analyst said that ZoomInfo has plenty of room for profit growth, as the company introduces new products, makes acquisitions and drives international expansion.

Peterson rates the stock as a buy with a target price of $65.

Amid strong demand, ZoomInfo is accelerating its international expansion. The company is increasing its headcount in London, and it also recently opened its first physical office in India.

At the same time, ZoomInfo is continuing with strategic acquisitions. It recently acquired Comparably and Dogpatch Advisors to support its recruiting and sales solutions. As it expands abroad and enhances its solutions with acquisitions, ZoomInfo is winning more business from existing customers. For example, it recently had an expanded deal with Alphabet, Google’s parent company (GOOGL), the analyst said.

Peterson is ranked at number 100 out of nearly 8,000 analysts in the TipRanks database. His stock ratings were correct 59% of the time, with an average return of 19.2% per rating.

Costco

Big box retailer Costco (PRICE) currently operates a network of about 830 stores and plans to open 30 more stores by 2022. The move could boost its sales. (See Costco stock chart on TipRanks).

In its latest quarterly report, Costco announced revenue and profit that beat consensus estimates. However, Costco The stock has continued to trade below the start of the year. Analyst Oppenheimer Rupesh Parikh believes Costco is still a great investment and that the stock drop is a great opportunity to buy it at a lower price. In a recent report, the analyst highlighted Costco’s strong management team and strong track record in shareholder returns.

Parikh rates the stock as a buy with a target price of $645.

Regarding shareholder returns, Costco has a long history of dividend payments. It recently increased the payout to $3.60 per share on an annual basis. Parikh sees the prospect of an exceptional dividend. The analyst also noted that Costco’s strong April sales despite the many difficulties that broad-based retailers are grappling with. The analyst also finds Costco has a strong competitive position, which will allow it to continue to gain market share.

Parikh is ranked at number 352 out of about 8,000 analysts in the TipRanks database. The analyst was correct 62% of the time in rating his stocks, with an average return of 10.5% per rating.

Green dot

Fintech Green Dot Company (GDOT) offers prepaid debit cards, checking accounts, and consumer cash handling services. It also helps with payroll disbursement and processing tax refunds.

The company delivered strong first-quarter results, as both revenue and profit improved year-over-year and beat consensus estimates. Green Dot continues to offer upbeat guidance for the second quarter and full year. The company also launched a $100 million stock buyback program. (See Blue dot risk analysis on TipRanks)

However, Green dot Stocks remain under pressure amid a widespread market sell-off. According to analyst Needham Mayank Tandon, GDOT The outlook is bright and the current drop represents a bargain opportunity.

Tandon rates GDOT as a buy with a target price of $35.

The analyst noted that the pandemic has spurred the adoption of digital banking and payments, adding that the trend is affecting GDOT’s core focus areas. Tandon also noted that GDOT’s management continues to invest in driving long-term growth into the future. Investments, along with share buybacks, could drive double-digit earnings-per-share growth into 2023 and beyond.

Out of the nearly 8,000 analysts in the TipRanks database, Tandon was ranked at number 573. Analyst calls were accurate 48% of the time, with an average return of 10% per rating. .

Cigar

Cigna Health Insurance Company (CI) is hindering the broader market sell-off. Investors have continued to flock to Cigna stock after the company reported Strong quarterly results and issued positive guidance for the whole year. Analyst at Mizuho Securities Ann Hynes believe it is the right thing to do now.

In a recent report, the analyst noted that Cigar ‘The outlook is still bright. The company recently launched a supplier consulting service it says it is designed to provide better outcomes for cancer patients. This service is provided by Evernorth Health Services. In a community trial, Cigna said results showed that 40 percent of patients benefited from updated therapy guidelines, thanks to a provider’s counseling service. According to Hynes, Evernorth’s business performed well in the first quarter and it remains well-positioned for growth in 2023. (See See Cigna . dividend data on TipRanks)

Hynes rates the stock as a buy with a target price of $291.

According to Hynes, Cigna’s Evernorth unit is benefiting from new business wins and strong renewal rates. The analyst also noted that there is a large cross-selling opportunity for Cigna between the healthcare segment and the Evernorth unit.

Of the nearly 8,000 analysts in the TipRanks database, Hynes ranked 568. Analyst calls were correct 57% of the time, with an average return of 8.9% per rating.



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