The Analysts Are Driving These Stocks Higher
While loath to blindly follow any analyst into an investment we like keeping track of the analyst community. Not only are they a fountain of ideas, but following the trend in analyst sentiment can provide deep insight into major market turning points. It doesn't matter to us if the analyst’s consensus is bullish or bearish if there is a clear trend of bullishness or bearishness within the community. That said today's news includes upgrades on 3 stocks that we think have big gains ahead of them.
Getting Bullish On FedEx Ahead Of Earnings
Shares of United Parcel Service (NYSE:UPS) and FedEx Corporation (NYSE:FDX) have been under a little pressure the last week or so following some weak guidance from UPS. UPS updated the market on its 2023 revenue projections, projections that were basically in line with the market's expectations, and caused shares to fall. In our view, the guidance was fine but largely irrelevant because 2023 is still so far away. Fast forward to today and the analysts at Stephens are reiterating their overweight rating on FedEx ahead of the company's scheduled earnings release. UPS, if you'll remember, reported exceptionally strong numbers six weeks ago driven by eCommerce and global economic reopening compounded by rising prices for freight. FedEx is expected to do the same.
The analyst at Stevens reiterated an overweight rating on FedEx then boosted the price target to $360 from $350. That’s an upside of 20% and compares to the consensus target of $330. Over the past month, there have been five notable analyst calls on FedEx, all bullish, with a consensus in the range of $350 to $360. Price weakness may continue in the near term for shares of the stock but we expect to see it begin moving higher following the release of the fiscal Q4 earnings report.
Coinbase Is Bottoming
Coinbase (NASDAQ:COIN) is among the most heavily hyped IPOs in recent history. The company's market, its exposure to cryptocurrency, and the phenomenal growth had the market in a frenzy. That’s why it shouldn't be a surprise share price has performed so badly in the time since. Now, however price action appears to be bottoming and the analysts are starting to get bullish again. Canaccord just initiated the stock with a buy rating and a price target of $285. They point to the company's long-term positioning as a cryptocurrency gateway and the emergence of defi. Those, along with the company's ability to grow its user base, add up to significant opportunities for monetization beyond cryptocurrencies.
Canaccord’s price target implies about 25% upside from recent price action and we think this is low. The consensus estimate among 15 analysts, 11 of whom are bullish, is closer to $380. That implies about 65% upside from recent price action. In our view, it looks like a move above the 30-day moving average could spark a technical buy and an inrush of capital to this market.
Sofi Technologies Is Disrupting Finance
SoFi Technologies (NASDAQ:SOFI) are notable for many reasons including it is a disrupter fintech, it came to the public market as a SPAC, and it just got a very important nod from the analyst community. Rosenblatt initiated the stock at a buy with analysts Sean Horgan expecting the company to capture a significant amount of value over the next 5 to 10 years. In his view, traditional banking and lending are being disrupted by the very fintech’s poised to gain share. Sofi Technologies went public earlier this month and already has two bullish analysts on its side, their consensus expectation is worth about 25% upside from current prices. With products ranging from student loans to personal loans, mortgages, investment products, and insurance we see this company capturing market share on a sequential basis for many years into the future.
FedEx is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.