Latest news with #BradZelnick
CNBC
3 days ago
- Business
- CNBC
These stocks reporting earnings next week have a history of topping analysts' estimates
Just a handful of companies reporting earnings next week have a track record of beating Wall Street's expectations. Palo Alto Networks and Intuit are on that list. Second-quarter earnings have assuaged investors' fears about slowing economic growth. More than 80% of S & P 500 companies that have reported so far have posted a positive earnings surprise for the second quarter, which is above the five-year average, according to FactSet data. More often than not, stocks can get a boost from strong earnings results. With this in mind, CNBC Pro screened data from Bespoke Investment Group for companies due to report next week that have a history of beating earnings expectations and then rising on the back of those results. The stocks below have beaten earnings expectations, on average, 75% of the time and posted a move of at least 1% on the reporting day. Take a look: One company that topped the list was Palo Alto Networks, which has a 94% average earnings beat rate and boasts an average postearnings move of 1.1%. Shares of the cybersecurity company are down more than 3% this year, but jumped more than 5% this week. Palo Alto Networks has seen a series of upgrades and price target increases in recent days as Wall Street assesses the company's announcement to acquire Israeli identity security platform CyberArk in a deal valued at roughly $25 billion. Deutsche Bank analyst Brad Zelnick on Tuesday upgraded Palo Alto Networks to buy from hold and lifted his price target by $20 to $220, which implies about 25% potential upside. "Despite recent share underperformance and some investor questions following the announced CYBR deal, the core business appears to be humming along nicely," Zelnick said. PANW 1Y mountain Palo Alto Networks stock over the past year. Intuit also has a history of exceeding analysts' earnings expectations, with an average beat rate of 87%. Shares of the financial planning company are up more than 14% this year. Intuit is one of the leading software adopters of artificial intelligence , with its chief financial officer having said during the company's earnings call in May that internally deployed AI tools have increased the productivity of its developers. Bank of America is one Wall Street firm that is bullish on Intuit's position in the AI race. Analyst Brad Sills said in a June 12 note that he views "Intuit as a key AI beneficiary in software, with a multi-year adoption and monetization cycle in the [small- and medium-sized business] and consumer segments" as the company capitalizes on AI adoption across products including Turbo Tax, Credit Karma, QuickBooks and Mailchimp. Other stocks that made the cut are Analog Devices and Keysight Technologies , which have generally beaten earnings 90% and 77% of the time, respectively.
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Analysts Offer Insights on Technology Companies: Broadcom (AVGO) and Oracle (ORCL)
There's a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Broadcom (AVGO – Research Report) and Oracle (ORCL – Research Report) with bullish sentiments. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Broadcom (AVGO) DBS analyst Fang Boon Foo maintained a Buy rating on Broadcom today. The company's shares closed last Friday at $246.93, close to its 52-week high of $251.88. According to Foo is a 5-star analyst with an average return of 32.7% and a 67.4% success rate. Foo covers the Technology sector, focusing on stocks such as Qualcomm, Marvell, and Nvidia. ;'> Currently, the analyst consensus on Broadcom is a Strong Buy with an average price target of $289.24, representing a 15.2% upside. In a report issued on May 28, Redburn Atlantic also initiated coverage with a Buy rating on the stock with a $301.00 price target. Oracle (ORCL) In a report released today, Brad Zelnick from Deutsche Bank maintained a Buy rating on Oracle, with a price target of $200.00. The company's shares closed last Friday at $174.02. According to Zelnick is a 5-star analyst with an average return of 10.9% and a 68.0% success rate. Zelnick covers the Technology sector, focusing on stocks such as CoreWeave, Inc. Class A, Palantir Technologies, and Palo Alto Networks. ;'> Oracle has an analyst consensus of Moderate Buy, with a price target consensus of $177.48, which is a 2.0% upside from current levels. In a report issued on June 4, Guggenheim also maintained a Buy rating on the stock with a $220.00 price target.
Globe and Mail
29-03-2025
- Business
- Globe and Mail
2 Ultra-Popular AI Stocks to Sell Before They Drop 52% and 61%, According to Certain Wall Street Analysts
Palantir Technologies (NASDAQ: PLTR) and Tesla (NASDAQ: TSLA) are two of the most popular stocks among individual investors, but some Wall Street analysts think shareholders will see potentially catastrophic losses in the next year: Brad Zelnick at Deutsche Bank has a sell rating on Palantir stock. His target price of $35 per share implies 61% downside from its current share price of $90. Ryan Brinkman at JPMorgan Chase has a sell rating on Tesla stock. His target price of $130 per share implies 52% downside from its current share price of $273. Here's what investors should know about Palantir and Tesla. Palantir Technologies: 61% implied downside Palantir develops data analytics software for commercial and government customers. The company in 2023 released an artificial intelligence (AI) platform called AIP, adding support for natural language processing to its core products, Gotham and Foundry. AIP has been a huge success because it lets clients inject generative AI into decision-making workflows, helping them understand complex information and identify the next best action. Several analysts have praised Palantir's technological prowess since AIP went live. International Data Corp. (IDC) recognized its leadership in decision intelligence software, and Forrester Research recognized the company as a leader in artificial intelligence and machine learning platforms, awarding AIP higher scores than similar products from Alphabet 's Google and Microsoft. Palantir reported strong fourth-quarter financial results, beating expectations on the top and bottom lines. Its customer count increased 43%, and the average existing customer increased spending by 20%. In turn, revenue rose 36% to $828 million, the sixth straight acceleration, and non-GAAP (generally accepted accounting principles) earnings soared 75% to $0.14 per diluted share Palantir is chasing a massive market opportunity. IDC expects AI platform sales to increase at 41% annually to reach $153 billion by 2028. But even the tremendous addressable market does not justify the current valuation. Shares trade at 220 times adjusted earnings, which is very expensive for a company whose earnings are forecast to grow 37% in 2025. Personally, I doubt Palantir shares will decline 61% in the next year, but I do think the stock is overvalued. Investors should look elsewhere for buying opportunities right now, while keeping Palantir on their watch lists. I would feel more comfortable adding to my position if the stock fell to about $70 per share. Tesla: 52% implied downside Tesla reported disappointing fourth-quarter financial results. Revenue increased 2% to $26 billion, operating margin contracted 2 percentage points, and non-GAAP earnings rose only 3% to $0.73 per diluted share. But the company has a key catalyst on the horizon in the launch of autonomous ride-sharing (robotaxis) in Austin, Texas, in June. My feelings on Tesla are mixed. In the positive column, the company has an important data advantage due to its unmatched fleet of camera-equipped vehicles, which hints at superior AI powering its autonomous driving software. And its decision to rely solely on computer vision (rather than integrating lidar and radar like Alphabet's Waymo) makes its robotaxis much cheaper and far more scalable. In the negative column, CEO Elon Musk has become a central figure in the Trump administration, and politics is divisive. Musk has alienated prospective buyers and possibly tarnished the Tesla brand. Its sales in Europe fell 50% in January and 47% in February, despite strong growth in the broader electric car market, according to The Wall Street Journal. Tesla has always been difficult to value due to its aspirations in autonomous driving and robotics, but the addition of political risk has made the situation even more challenging. Nevertheless, Wall Street estimates earnings will increase 10% in 2025, making the current valuation of 112 times adjusted earnings look outrageous. In that sense, the stock could fall sharply in the coming months, especially if the political backlash escalates or the robotaxi launch does not go as planned. But if Musk disentangles himself from politics and makes good on long-standing promises concerning autonomous driving and robotics, Tesla could be worth much more in the future. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $288,966!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,440!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $526,737!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. Continue » *Stock Advisor returns as of March 24, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Trevor Jennewine has positions in Palantir Technologies and Tesla. The Motley Fool has positions in and recommends Alphabet, JPMorgan Chase, Microsoft, Palantir Technologies, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
