In this article, we will take a look at the 10 stocks recently upgraded by analysts. If you want to see some more stocks on the list, go directly to Analysts are Upgrading These 5 Stocks.
U.S. stocks turned red on Wednesday morning after staying in positive territory during the last two trading sessions. Meanwhile, a rebound in Treasury yield also dragged down the stock market this morning. As of 11:36 AM ET, S&P 500 was down 1.43 percent, Dow Jones Industrial Average was negative 1.11 percent and Nasdaq Composite slid 1.79 percent.
In addition, oil continued its upward journey as OPEC+ decided to trim production by two million barrels a day. Many believe the decision could spark another rally in oil prices. On the other hand, World Trade Organization cautioned that elevated energy costs and higher interest rates could significantly hurt global trade in the coming quarters.
Meanwhile, several notable stocks, including Walmart Inc. (NYSE:WMT), Ford Motor Company (NYSE:F) and The Charles Schwab Corporation (NYSE:SCHW), received upgrades from Wall Street analysts this morning.
In addition, Box, Inc. (NYSE:BOX) and Illumina, Inc. (NASDAQ:ILMN) are also on the list of 10 stocks recently upgraded by analysts. Check out the full article to see the reasons behind the updated ratings for these companies.
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10. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 14
Odeon Capital improved its ratings for Bed Bath & Beyond Inc. (NASDAQ:BBBY) from "Sell" to "Hold" on Friday, September 30, 2022. While analyst Alexander Arnold acknowledged the company's existing issues, he believes things have started moving in the right direction.
Arnold also pointed towards recently secured financing, saying it should help the New Jersey-based retailer get back on track. The upgrade came a day after Bed Bath & Beyond Inc. (NASDAQ:BBBY) released its fiscal second-quarter results.
Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported an adjusted loss of $3.22 per share, wider than analysts' average forecast for a loss of $1.79 per share. Revenue for the quarter plummeted 28 percent versus last year to $1.44 billion, nearly in line with expectations.
Moving forward, Bed Bath & Beyond Inc. (NASDAQ:BBBY) plans to save $250 million during the second half of the year. Moreover, it intends to shut more than 100 stores by the end of fiscal 2022.
9. Credicorp Ltd. (NYSE:BAP)
Number of Hedge Fund Holders: 17
Shares of Credicorp Ltd. (NYSE:BAP) rose nearly six percent on Tuesday, October 4, 2022, after Citi analyst Rafael Frade turned bullish on the financial services company, citing Peru's recovering economy.
Frade believes Credicorp Ltd. (NYSE:BAP) is well set to capitalize on the elevated interest rates. He lifted his ratings for the Peru-based company from "Neutral" to "Buy" and increased his price target from $128.05 per share to $161 per share.
Earlier this year, investment management firm Diamond Hill Capital also talked about Credicorp Ltd. (NYSE:BAP) in its first-quarter 2022 investor letter, stating:
"Credicorp shares outperformed on continued fundamental improvements, better-than-expected FY2022 guidance, positive sentiments on rising rates and higher commodities prices globally, of which Peru is a beneficiary."
8. Box, Inc. (NYSE:BOX)
Number of Hedge Fund Holders: 25
Shares of Box, Inc. (NYSE:BOX) rose for two straight days, gaining more than 12 percent, after receiving an upgrade from Morgan Stanley on Monday, October 3, 2022. The research firm improved its ratings for the content sharing platform from "Equal Weight" to "Overweight."
Morgan Stanley analyst Josh Baer was primarily moved by the company's higher net retention and lower churn rate. Baer thinks the company's increasing mix of suites would lead to higher pricing, stronger retention, and bigger deals. He also lifted his price target for Box, Inc. (NYSE:BOX) from $32 per share to $34 per share.
Like Box, Inc. (NYSE:BOX), analysts also lifted their ratings for Walmart Inc. (NYSE:WMT), Ford Motor Company (NYSE:F) and The Charles Schwab Corporation (NYSE:SCHW).
7. CommScope Holding Company, Inc. (NASDAQ:COMM)
Number of Hedge Fund Holders: 28
Shares of CommScope Holding Company, Inc. (NASDAQ:COMM) jumped more than 17 percent on Tuesday, October 4, 2022, after Credit Suisse analyst Sami Badri raised his ratings for the network infrastructure provider from "Neutral" to "Outperform."
Badri thinks the company's core product segments will continue to benefit from government funding for building broadband and connectivity infrastructure in the coming years. Badri added that the company's resilient sales growth in the current macro environment would also help in debt reduction. He lifted his price target for CommScope Holding Company, Inc. (NASDAQ:COMM) from $11 per share to $17 per share.
CommScope Holding Company, Inc. (NASDAQ:COMM) shares are currently trading around $11.7, very close to their 52-week high of $12.88. Meanwhile, the company's market value is hovering around $2.4 billion.
6. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 44
Shares of Illumina, Inc. (NASDAQ:ILMN) rose to a nearly one-month high on Tuesday, October 4, 2022. The surge came after SVB Securities upgraded the DNA sequencing company from "Market Perform" to "Outperform," citing the launch of its NovaSeq X+ series.
Illumina, Inc. (NASDAQ:ILMN) recently lifted the curtains from its latest sequencing machines that are two-fold faster and accurate than their predecessors. The company said the launch would significantly reduce the cost of genome sequencing.
Discussing the development, CEO of Illumina, Inc. (NASDAQ:ILMN), Francis deSouza, said in a statement:
"Innovations like NovaSeq X are at the heart of how we will transform patient lives, and this groundbreaking technology will empower researchers, scientists, and clinicians in the fight to diagnose, treat - and eventually cure - disease while making genomics more sustainable and accessible to millions more people around the world."
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Disclosure: None. Analysts are Upgrading These 10 Stocks is originally published on Insider Monkey.