As we near the end of earnings season, investors are looking for the stocks that came out on top. One way to tell who the winners are is to look at analyst rating activity. As analysts often just reiterate previous ratings, we know they mean business when they upgrade a stock. In fact, share prices often soar after receiving positive ratings from trusted analysts. For example, Snap Inc.’s (SNAP) share price jumped over 18% after it got an upgrade from Summit Redstone Partners analyst, Jonathan Kees, on July 24.
Here are 10 hot stocks that just got upgraded by analysts.
Bank of America Corporation (BAC)
On July 26, KBW analyst Brian Kleinhanzl, upgraded BAC to a Buy while raising his price target from $32 to $36, suggesting 17% upside potential. The upgrade comes after the bank posted strong second quarter earnings results that surpassed the Street’s expectations on July 17. “We expect the bank to benefit from an improved economic outlook after expected interest rate target cuts by the Federal Reserve,” he said.
The Street is bullish on BAC. It has a ‘Strong Buy’ analyst consensus, with it receiving 4 Buy ratings vs 1 Hold over the last three months. Its average price target is $36, indicating 16% upside.
Hasbro Inc. (HAS)
The toy maker just got a vote of confidence from Argus Research on July 26. Top analyst, John Staszak, upgraded the stock from a Hold to a Buy and set a $145 price target after it demonstrated consistently strong outcomes over the last two quarters. He believes share prices could jump 20% over the next twelve months. “Hasbro remains a leader in the U.S. toy industry. The company has a range of strong global brands that include Transformers, Nerf, and My Little Pony, and also dominates in the big-screen business, generating revenue from its Disney Princess, Marvel and Star Wars licensed products. In addition, we expect the company to post strong international growth, particularly in the Asia Pacific region and other emerging markets,” Staszak said.
HAS has a ‘Moderate Buy’ analyst consensus and a $125 average price target, suggesting 3% upside potential.
Sprint Corporation (S)
After U.S. Department of Justice antitrust regulators approved its merger with T-Mobile US, Inc. (TMUS) on July 29, the telecommunications company got an upgrade from analyst, John Hodulik. The UBS analyst upgraded the stock to a Buy and set a $10 price target. He believes the merger could send shares soaring by as much as 36% over the next twelve months. Hodulik boasts an 83% success rate and gets a 15% average return per rating.
Sprint is one of the riskier stocks on our list. It has a ‘Hold’ analyst consensus and a $7 average price target, indicating 6% downside potential.
Crown Castle International Corporation (CCI)
CCI is one of the leading providers of shared communications infrastructure.
On August 1, the company got a nod of approval from J.P. Morgan. Analyst, Philip Cusick, believes the telecom stock is well positioned to soar as connectivity continues to grow. He upgraded CCI to a Buy and raised his price target from $125 to $150, suggesting 13% upside. Cusick has a 69% success rate and gets an average return of 12% per rating.
CCI has a ‘Moderate Buy’ analyst consensus and an average price target of $150, indicating 13% upside potential.
United Therapeutics Corporation (UTHR)
UTHR is a biotech company that develops treatments for pulmonary arterial hypertension (PAH). After it posted an earnings beat on July 31, analyst Matthew Kaplan gave the stock a ratings boost. He upgraded his rating to a Buy and raised his price target from $103 to $106, suggesting 38% upside. “We expect United Therapeutics to continue to maintain a significant market share in pulmonary hypertension with Remodulin due to practitioner preference. The company will be able to maintain a relatively steady revenue base and potentially continue to grow revenues as its pipeline advances to replace their genericized products,” he said on August 1.
The biotech has a ‘Moderate Buy’ analyst consensus and a $123 average price target. It boasts substantial upside potential of 55%.
World Wresting Entertainment, Inc. (WWE)
The wrestling-based media and entertainment company reported that its Q2 earnings came in ahead of consensus estimates and that it had entered into a distribution agreement with Fox (FOXA) on July 25. Following the release, Benchmark Co. announced that it believes WWE will emerge as a winner. On July 26, top analyst, Mike Hickey, upgraded his rating from a Hold to a Buy and set a $90 price target. The price target suggests 24% upside potential. “We are now optimistic the Firm’s engagement metrics should continue to recover, potentially benefiting from the new distribution agreement with Fox, WWE Network re-launch, return of talent/reset of storylines, and new executive leadership at both Raw and Smackdown,” he said.
WWE boasts a ‘Strong Buy’ analyst consensus and a $96 average price target. The Street sees upside potential being 32% on average.
United Parcel Service, Inc. (UPS)
Following a better than expected July 24 earnings release that sent shares soaring by 9% in after-hours trading, UPS got more good news. On July 25, Merrill Lynch analyst, Ken Hoexter, upgraded his rating to a Buy while raising his price target by $15 to $130. He believes share prices could surge by 9% over the next twelve months. “We are impressed that UPS was able to end an 11-quarter decline in its overall operating margin, even with costs related to its automation projects and a big jump in next-day e-commerce business, which has historically dragged on margins. The company’s network transformation and secular gains equal a powerful story,” the analyst said.
The shipping company has a ‘Moderate Buy’ analyst consensus and $124 average price target, suggesting 4% upside potential.
Clean Harbors, Inc. (CLH)
Clean Harbors provides on-site environmental, energy and industrial services such as hazardous waste disposal. After it reported on July 31 that its Q2 earnings had beaten the Street’s consensus estimates, Oppenheimer gave CLH its stamp of approval. Top analyst, Noah Kaye, upgraded the stock to a Buy and set an $88 price target, suggesting 13% upside potential. “We believe Q2 results and commentary provide evidence that Clean Harbors can still generate healthy margin expansion in a low-growth environment, and that consistent execution along with potential catalysts can support another leg up for the shares,” he said on August 1.
CLH has a ‘Moderate Buy’ analyst consensus and an $84 average price target, indicating 8% upside potential.
Five9 Inc. (FIVN)
The cloud-based call center software provider managed to top the Street’s EPS estimate for Q2 by 8 cents, and analysts took notice. After the company’s earnings release on July 31, two analysts gave FIVN upgrades. On August 1, J.P. Morgan analyst, Sterling Auty, upgraded his rating to a Buy and raised his price target from $59 to $70, suggesting 42% upside potential. On the same day, Catharine Trebnick of Dougherty upgraded her rating to a Buy and set a $63 price target. She thinks share prices could rise by 6% over the next twelve months. Both analysts say that FIVN’s Q2 earnings and full year 2019 guidance raise leads them to believe that more growth is on the way.
Five9 has a ‘Moderate Buy’ analyst consensus and a $64 average price target, suggesting 8% upside.
Taylor Morrison Home Corporation (TMHC)
The home building company got a ratings boost from B.Riley FBR after it reported on July 31 that it had exceeded earnings expectations. Top analyst, Alex Rygiel, upgraded his rating to a Buy while raising his price target from $22 to $26, indicating 15% upside potential. “Consistent demand is carrying into the second half of 2019 following the company's strong Q2 results,” he said on August 1.
TMHC has a ‘Moderate Buy’ analyst consensus and a $24 average price target, suggesting 6% upside potential.