Latest news with #StrongBuy
Entrepreneur
a day ago
- Business
- Entrepreneur
3 New Strong Buy Ratings from Top-Rated Analysts: 06/05/2025
Tax season has cooled down, but Intuit (INTU) is heating up — plus, 2 more recent Strong Buy recommendations from top-rated analysts This story originally appeared on WallStreetZen Here's a peek at the latest picks from our most-visited stock screener: Tax season has cooled down, but Intuit ( INTU ) is heating up is heating up Why Flex ( FLEX ) has unanimous Strong Buy ratings has unanimous Strong Buy ratings Is Semtech (SMTC) a fantastic "buy the dip" opportunity? P.S. Get more alerts like this daily … Try WallStreetZen Premium. Investors often come across the phrase "buy the dip" — but with Semtech Corp, it'd be more apt to say "buy the plunge." After an unexpected setback when it comes to revenue from a crucial segment, SMTC stock has lost significant value since the beginning of the year. However, there's an odd dissonance at play — while analysts have cut their price targets accordingly, they're still bullish, and see plenty of upside — particularly at the current, reduced valuation. Zen Rating: B (Buy) — see full analysis > Recent Price: $37.10 — get current quote > Max 1-year forecast: $68.00 Why we're watching: At present, 8 Wall Street researchers issue ratings for SMTC stock — 4 have deemed it a Strong Buy, 3 have given it a Buy rating, and 1 analyst rates the stock a Hold. There are currently no Sell or Strong Sell ratings. See the ratings The average price forecast of $55.75 implies a 55.9% upside from the current price of Semtech shares. Stifel Nicolaus researcher Tore Svanberg (a top 4% rated analyst) maintained a Strong Buy rating after the company's Q1 2026 earnings, and upped his price target from $42 to $45. Svanberg summarized the quarter with "in-line results and in-line Q2 guidance." Looking ahead, the analyst said that in spite of the near-term ACC business "air pocket," Semtech's next-gen CopperEdge ACC products continue to generate significant interest, infrastructure momentum continues, and the company's profitability is improving. Benchmark's Cody Acree (a top 9% rated analyst) also doubled down on a Strong Buy rating following the quarterly report — and reiterated a Street-high price target of $68. Once SMTC's performance across our 7 Component Grade ratings are squared, the stock ranks in the top 9% of equities on the whole — placing it firmly in the upper end of stocks with a Zen Rating of B, equivalent to a Buy. Semtech does exceptionally well in two areas — Financials, where it ranks in the top 5% of stocks, and Growth, where it ranks in the top 2%. (See all 7 Zen Component Grades here >) Flex is a company that wears many hats — as it helps design, build, and deliver products and entire supply chains across a wide variety of industries, including automotive, healthcare, and even cloud computing. At present, the business is reorienting itself toward high-growth and high-margin areas — chiefly data centers, and it seems to be paying off. Zen Rating: A (Strong Buy) — see full analysis > Recent Price: $42.33 — get current quote > Max 1-year forecast: $52.00 Why we're watching: In a clear cut case of overwhelmingly positive coverage, 7 analysts issue ratings for FLEX — all 7 rate the stock a Strong Buy. See the ratings Following the company's Q4 and FY 2025 earnings call, two top-rated analysts doubled down on their bullish coverage. Justin Patterson of KeyBanc (a top 7% rated analyst) maintained a Strong Buy rating and increased his price target on FLEX shares from $35 to $44. According to Patterson, the stock was up post-print because the quarter beat consensus and management's FY 2026 guidance was higher on EPS, although lower on revenue. Overall, the analyst argued that Q4 "generally surpassed lowered expectations, even though datacenter/AI headlines and narratives have changed recently." Barclays researcher George Wang (a top 11% rated analyst) also reiterated a Strong Buy rating, and increased his price forecast from $49 to $50. "The company delivered a solid quarter, and its positive mix shift is bearing fruit," Wang told investors. Flex ranks in the top 4% of equities on the whole , giving it an overall Zen Rating of A. , giving it an overall Zen Rating of A. For a better idea as to why FLEX ranks so highly, we have to take a closer look at its Component Grade ratings. When it comes to Safety, the stock ranks in the top 17%. In terms of Sentiment, it ranks in the top 12%. However, the Artificial Intelligence rating steals the show — in this regard, FLEX ranks in the top 10% of the more than 4,600 equities that we track. (See all 7 Zen Component Grades here >) Ever used TurboTax? You're one of Intuit's customers. For decades, this business has dominated the financial and compliance software market. Despite declining share prices, the company maintains a strong checkbook and enjoys confidence from Wall Street — which means it also merits a closer look. Zen Rating: B (Buy) — see full analysis > Recent Price: $752.04 — get current quote > Max 1-year forecast: $875.00 Why we're watching: INTU has received a lot of attention from Wall Street — the stock currently has 18 ratings, divided between 11 Strong Buys, 6 Buys, and 1 Hold. See the ratings Following the company's Q3 2025 earnings, Michael Turrin of Wells Fargo (a top 24% rated analyst) reissued a Strong Buy rating, and hiked his price target from $775 to $825. Turrin told readers that the inflection in Live was the catalyst behind the tax outperformance that dominated the print. Live's sustainability into next year was reaffirmed by management, the analyst said, "and QuickBooks' mission criticality continues to shine through." In addition, Bank of America researcher Brad Sills (a top 5% rated analyst) also doubled down on a prior Strong Buy rating, and upped his price target from $730 to a Street-high $875. A successful tax season spearheaded the company's "strong Q3," supported by strength across the company's other lines of business, Sills told readers. The analyst added that the results from this tax season show that TurboTax has effectively shifted its focus to the assisted category, where it is expected to sustainably drive growth. Further, Sills noted that Intuit's Business Solutions unit, which includes QuickBooks, recorded a 19.4% growth rate, which "nicely exceeded" their forecast of 18%, indicating that demand for the product is resilient. Intuit shares rank in the top 8% of equities based on a big-picture overview of 115 proprietary factors that correlate with outsized returns, earning it an overall B (Buy) Zen Rating. of equities based on a big-picture overview of 115 proprietary factors that correlate with outsized returns, earning it an overall B (Buy) Zen Rating. Overwhelmingly positive analyst coverage, a significant degree of insider buying, and a string of positive earnings surprises have come together to give INTU a Sentiment Component Grade rating in the top 6% of stocks. However, INTU ranks even more highly in terms of Financials and Artificial Intelligence — in the top 4% and top 1%, respectively. (See all 7 Zen Component Grades here >) What to Do Next?
Entrepreneur
27-05-2025
- Business
- Entrepreneur
Korn Ferry (KFY): Strong Buy Stock with NO Tariff Risk
There is a lot to like about Korn Ferry (KFY) as a prime investment in the year ahead. Best of which may be how it completely avoids all the current... This story originally appeared on WallStreetZen Korn Ferry (KFY) concentrates in two business areas that carry no tariff risk. Gladly there are 115 other reasons to like this stock (spoiler: I am talking about the 115 factor analysis of the Zen Ratings that points to this stock as being an A rated Stong Buy). Beyond their core consulting business, the real strength of the firm is their focus on executive recruiting. The best part of that story is that executive recruiting is a great counter cyclical industry. Meaning that there is often heavier executive turnover during the rough times than during the good times. This helps alleviate some concerns for owning KFY if indeed we are devolving into a recession as many worry about given recent economic weakness. On the other hand, they are having no problem at all finding growth during the good times like the expected 15% earnings growth this year which is about twice the pace of the average US company. Plus, as mentioned above, this is a business model that pretty well escapes tariffs which gives greater clarity into their future earnings prospects. Our Zen Ratings quant model has placed KFY in the top 5% of all stocks earning the coveted A rating which equates to a Strong Buy. Historically that has pointed to stocks that have more than tripled the return of the overall market. In particular what jumps off the page is the top 2% reading for Safety which is a great quality to have during these volatile times. Also good to note that it's in the top 8% for Value and top 14% for Financials. Strong Financials is one of the best predictors of future earnings beats as shared in this recent article: Boring Financials Point Way to Excited Stock Gains! This top 14% Financial reading means KFY is a very well run company which shows up in a string of 10 straight earnings beats…and increases the odds of more beats on the way. Indeed the Wall Street analyst community also smiles on shares with an average target price of $80 and a street high of $83. That upside value squares up well with that top 8% reading for Zen Rating Value score. This feels like exactly the kind of stock to buy given the mixed economic outlook thanks to the uncertainty of tariffs. Plus the unique focus of the company (executive recruiting) that should help shares outperform in the good days or the bad. What To Do Next? Korn Ferry (KFY) is just one of the stellar 18 stocks found in my Zen Investor portfolio. I pick these stocks based upon their attractiveness in our proven Zen Ratings model. Plus keying in on lessons learned over my 45 year investing career. Over that time I have seen 7 bear markets, 8 bull markets, and just about everything between. This has helped me pick some stellar stocks in 2025 even in the face of this volatile market. Plus I will soon be adding 2 new stocks on Wednesday June 4th. The only way to see these top picks is to become a Zen Investor member. Gladly that is a very simple process. And right now comes with the ability to save up to 50% on your membership. Discover the Zen Investor & My Top Stocks Now > Wishing you a world of investment success! Steve Reitmeister…but everyone calls me Reity (pronounced 'Righty') Editor of the Zen Investor What to Do Next?
Yahoo
26-05-2025
- Business
- Yahoo
Wall Street Analysts Think PulteGroup (PHM) Is a Good Investment: Is It?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about PulteGroup (PHM). PulteGroup currently has an average brokerage recommendation (ABR) of 1.81, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 1.81 approximates between Strong Buy and Buy. Of the 16 recommendations that derive the current ABR, nine are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 56.3% and 6.3% of all recommendations. Check price target & stock forecast for PulteGroup here>>>While the ABR calls for buying PulteGroup, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Looking at the earnings estimate revisions for PulteGroup, the Zacks Consensus Estimate for the current year has declined 2.8% over the past month to $11.48. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for PulteGroup. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for PulteGroup with a grain of salt. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PulteGroup, Inc. (PHM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Wall Street Bulls Look Optimistic About Celestica (CLS): Should You Buy?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Let's take a look at what these Wall Street heavyweights have to say about Celestica (CLS) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Celestica currently has an average brokerage recommendation (ABR) of 1.40, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.40 approximates between Strong Buy and Buy. Of the 10 recommendations that derive the current ABR, seven are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 70% and 20% of all recommendations. Check price target & stock forecast for Celestica here>>>While the ABR calls for buying Celestica, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for Celestica, the Zacks Consensus Estimate for the current year has increased 1.3% over the past month to $5.05. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Celestica. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Celestica may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
14-05-2025
- Business
- Globe and Mail
Analysts rate Datadog Inc. a 'Top Pick' with 35% Upside Forecasted
Datadog Inc. (DDOG) Datadog has been identified as a leading investment opportunity, primarily due to its significant advancements within the AI-driven cloud monitoring sector. The company has shown impressive financial performance, reporting a revenue increase of 25% year-over-year, reaching $762 million. This figure not only highlights Datadog's robust growth but also exceeds analyst expectations, reinforcing its position as a market leader. A key factor driving Datadog's positive outlook is its strategic focus on artificial intelligence. As more organizations embrace comprehensive observability solutions to monitor and optimize their IT environments, Datadog's AI-driven capabilities are becoming increasingly relevant and valuable. This positions the company well to capitalize on the ongoing digital transformation trends across various industries. Analysts are notably optimistic about Datadog's future, with an average recommendation rating of 1.49, which leans towards a 'Strong Buy.' Out of 39 brokerage firms covering the stock, 28 have given it a 'Strong Buy' rating, reflecting widespread confidence in the company's growth prospects. Furthermore, Datadog's customer engagement remains strong, evidenced by a dollar-based net retention rate of 110%. This metric indicates that existing customers are not only staying with the platform but are also expanding their spending, a promising indicator of sustained revenue growth. The average target price for Datadog's stock is $153.18, based on projections from 24 analysts. This aligns with Stock Target Advisor's comprehensive analysis, which highlights a strong foundation of positive signals, leading to a 'Very Bullish' overall rating. Despite some recent revisions to earnings estimates suggesting short-term caution, the long-term growth potential of Datadog remains compelling. The company's strategic positioning within the rapidly growing AI and cloud monitoring space, combined with strong customer loyalty and favorable analyst sentiment, underpins the positive investment outlook.
