A sign on the office premises of chip maker Broadcom Ltd is displayed in Irvine, California.
Mike Blake | Reuters
As the first half of 2022 comes to an end, investors can be sure of at least one thing: This year is likely to continue to be difficult.
Economic risks are at the forefront of investors’ minds, as investment banks – including UBS, Citigroup and Goldman Sachs – raise expectations for the possibility of a recession.
Analysts are looking at short-term movements, picking out stocks that they believe can be solid bets over the long term. Here are five stocks picked by some of Wall Street’s top experts, according to TipRanks, which ranks the best performing analysts.
KLA Corporation (KLAC) is a semiconductor company specializing in the production of wafer fab devices. Global supply chain issues are limiting the company’s potential, and its stock has lost about 21% so far.
However, By KLA The leader in the process control niche can act as a buffer during downturns. Analyst Needham Quinn Boltonwho recently reiterated the company’s $395 price target buy rating, remains optimistic about KLA’s improved balance of exposure to foundry/logic and memory processes.
Bolton emphasized KLA’s consistent dividend policy. “The company is expected to continue to increase its dividend at a teen-age growth rate,” he said. (See KLA dividend history and date on TipRanks)
The analyst believes KLA will continue to outperform the wafer fab industry and continue to gain more share in the process control market.
Bolton holds the #2 spot out of nearly 8,000 analysts followed on TipRanks. Furthermore, 65% of his stock ratings were successful, returning an average of 41.7% per rating.
Broadcom (AVGO) designs, develops, manufactures and supplies various infrastructure and semiconductor software products. Like most major semiconductor companies, Broadcom has also faced supply chain inconveniences and loss of value that has accompanied the broader sell-off of the tech sector. AVGO stock is down about 23% so far this year. (See Broadcom stock chart on TipRanks).
However, Deutsche Bank analyst Ross Seymore not too worried about the company’s prospects. During a recent investor meeting, the analyst interviewed Broadcom C-suite members. In the interview, when asked about how the company plans to deal with a recession if it happens, management said the company only prioritizes shipping on real demand over booking aggregate. This is being done to ensure “a relatively gentle landing if/when cycle concerns materialize.”
Furthermore, Broadcom is well known for its growth strategy by acquisition, which has helped the company reduce competition and enter untapped markets sooner. This time, Broadcom will take over VMWare network security player (VMW). Broadcom acknowledged that it faced a short-term impact on accounting revenue due to the transition of its VMWare business to a subscription-based model. However, sales are expected to increase after the initial sale.
“We continue to see AVGO’s infrastructure-critical product and semiconductor combination offering desirable stability in a volatile macro/semi-industry environment,” said Seymore. increase”.
Ross Seymore is ranked 19th out of nearly 8,000 analysts on TipRanks. His ratings have produced an average return of 23.6% and have been successful 73% of the time.
One of the most famous software companies, Adobe (ADBE) has built a brand backed by a strong product line that includes Photoshop, Illustrator, and InDesign. However, lately, the company has not been kind to the company, this is recent provides weak guidance for fiscal year 22its shares plummeted.
Adobe stop all sales of new software to Russia and Belarus, which could result in a loss of revenue of $75 million. Furthermore, FX turbulence is also expected to recover $175 million in its third and fourth fiscal quarters. (See Adobe’s Risk Factors on TipRanks)
However, Deutsche Bank analyst Brad Zelnick not as interested as other investors. Instead, he was impressed by how reasonably the company factored in the effects of headwinds. He also believes that this weak expectation will help Adobe negotiate large enterprise deals more effectively. Furthermore, the brief guide will also help the company benefit from “F4Q innovation seasonality with an increase in Related Ads pricing”. That means more customers are likely to renew their subscriptions under the new pricing plans.
Furthermore, with the total addressable market for Adobe products at a whopping $205 billion, the analyst doesn’t see the company struggling much to recover from the current bear market.
Bolton reinforced his upbeat stance on Adobe with a buy rating on the stock. However, he updated his estimate of the company’s results for the current quarter and fiscal year, and accordingly, lowered his price target to $500 from $575.
According to TipRanks, Zelnick has a 68% success rate and an average return of 16.5% per rating. With Adobe in particular, he had 78% success and 19.1% average return per rating.
Suncor Integrated Energy Co.SU) produces synthetic crude oil from oil sands. Needless to say, activity in the energy sector has been a huge boon for the stock this year: It’s up nearly 38%.
Analyst at RBC Capital Greg Pardy are optimistic about the sustainability of the stock’s rally. He notes that Suncor has made a number of leadership changes to improve its operational reliability and safety in the aftermath of close scrutiny from activist investors like Elliott Management.
Pardy speculates that Suncor will maintain a steady oil sands production rate and optimize its resource base to assist in reducing the carbon footprint of the oil extraction process over time. (See Suncor Energy’s insider trading activities on TipRanks)
The analyst reiterated his buy rating on SU stock and he raised his price target to $53 from $47. “Our recent series of meetings in London with Suncor have encouraged us that the company must take a closer look at the steps required to regain its position as a good oil sands operator,” he said. best in the segment.
Pardy holds 64th place out of about 8,000 analysts followed on TipRanks. Furthermore, 60% of his ratings have so far been successful, yielding an average return of 27.1% per rating.
Remarkable, of internal is working tirelessly on a blueprint that will guide the company towards a zero-emissions future. With the support of advanced technologies, the company is rapidly moving towards its goal. Imperial expects these technologies to reduce carbon emissions intensity by 25% to 90% in its upcoming oil sands production projects. (See Trading activity of the oil hedge fund Imperial on TipRanks)
Pardy said that Imperial “has a competent leadership team, a favorable long-term operating outlook, a strong balance sheet and a commitment to shareholder returns.” Furthermore, the analyst also points out that strong production rates at Imperial’s property in Kearl, northern Alberta are enhancing the company’s overall operating dynamics, driven by a cost structure being improve.
Pardy reiterated his buy rating on the stock and raised his price target to $78 from $66. “Our recent discussion with Imperial CEO Brad Corson at RBC’s Global Energy, Electricity and Infrastructure Conference underscored the strength of the company’s downstream segment in against the backdrop of a significant drop in commodity prices and Imperial’s commitment to continued shareholder returns,” the analyst wrote.