Top Wall Street analysts like these stocks as inflation eases

Alphabet Inc.’s Google logo in front of the company’s headquarters in Beijing, China, 8 August 2018.

Thomas Peter | Reuters

Last week, the December consumer price index showed prices cooling.

The index fell 0.1% on a monthly basis, but the metric gained 6.5% year over year. Investors appeared to appreciate the news as the three major indices closed higher on Friday.

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According to Morgan Stanley, these attractive stocks have the best risk-to-reward ratios for 2023

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Still, it can be difficult to invest in this uncertain environment.

To aid in the process, here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their track records.

alphabet

Google parents alphabet (Google) is at the forefront of all major technology trends, including the growth of mobile engagement, online activity, digital advertising and cloud computing. In addition, the focus on artificial intelligence drives the development of better and more functional products.

Tigress Financial Partners analyst Ivan Feinseth recently reiterated a buy rating on the stock. His bullish stance is credited to robust trends in cloud and search that “continue to underscore the resilience of its core businesses.” (See Alphabet Blogger Opinions and Moods on tip ranks)

AI-focused investments and efforts toward cost and operational efficiencies should continue to propel Alphabet’s growth. Feinseth said that any near-term weakness represents a great buying opportunity.

The analyst is also bullish on Alphabet’s financial health. “GOOGL’s strong balance sheet and cash flow enables it to continue funding important growth initiatives, strategic acquisitions and continue to enhance shareholder returns through ongoing share buybacks,” said Feinseth, who is ranked 229th out of more than 8,000 analysts on TipRanks.

The analyst’s ratings were profitable 60% of the time, and each rating has generated an average return of 11.1%.

him & her

Another stock Feinseth recently relisted for purchase is the multi-specialty telemedicine company. him & her (HIM). The analyst also raised his 12-month price target on the stock to $12 from $11.

Feinseth believes in HIMS’ strong brand equity and customer loyalty, which he expects to continue to drive business performance. In addition, new product innovations support the company’s highly scalable business model and are expected to increase this year’s profit. (See Trading Activity of Hims & Hers Health Hedge Funds on tip ranks)

The huge healthcare market is constantly evolving and requires strong players with flexible business models to serve the growing demand. The analyst believes that HIMS is well positioned to be a key beneficiary in this space.

“HIMS’ scalable business model, expanded services and rapidly expanding customer base will result in significant revenue growth. Its low-asset business model of connecting patients with providers and providing access to quality branded healthcare products will ultimately result in significant return on investment (ROC), driving economic profit and increasing value creation for shareholders,” Feinseth said.

OrthoPediatrics Corp.

As the name indicates, orthopedics (CHILDREN) is engaged in the development, manufacture and marketing of products used in the treatment of orthopedic diseases in children. The company operates in more than 35 countries worldwide.

The pediatric orthopedic market is a niche market that is relatively underserved, which has worked to the company’s advantage. OrthoPediatrics dominates this market and gives it a competitive advantage in the medical device industry. BTIG Analyst Ryan Zimmerman notes that the company will benefit from this space as larger players have largely missed the opportunity. (See Annual accounts for OrthoPediatrics on tip ranks)

Last week, Zimmerman reiterated a Buy rating and $62 price target on KIDS stock. In addition to the market opportunity, the analyst said that “with a leading pediatric orthopedic brand and a concentrated customer base performing most cases in a limited number of hospitals, the model is scalable and defensible.”

Zimmermann has the 660th Ranking among 8,000+ analysts tracked on TipRanks. Additionally, 47% of its reviews were successful, generating an average 9% return per review.

Intuitive Surgery

medical technology company Intuitive Surgery (ISRG) is a pioneer in robotic, minimally invasive surgery. The company is also one of Zimmerman’s favorite stocks for the year.

Intuitive Surgical recently announced preliminary results for 4Q22 and FY23 process growth projections that were in line with Zimmerman’s expectations. Following the results, the analyst reiterated his bullish stance on the company with a Buy rating and a price target of $316. (See Intuitive surgical stock investors on tip ranks)

“There continue to be headwinds at the start of FY23, but we believe the ISRG is poised to continue to see improving market dynamics coupled with the potential for a next-generation system rollout. We would be buyers given today’s weakness,” Zimmerman said, justifying bullishness.

The analyst is optimistic about the company’s long-term growth potential in robotic surgery and sees ISRG as “a clear leader in this space.” Zimmerman said the pandemic has increased the importance of computer-assisted surgery thanks to accurate clinical results. This is expected to drive adoption of Intuitive Surgical’s products over time.

The cooks camp

Another BTIG analyst, Peter Salehwho has the 491St ranking in the TipRanks database, has recently reiterated its bullish stance on grocers Chef’s camp (A COOK). The company is a leading distributor of groceries for high-end restaurants and other expensive establishments.

Saleh sees multiple advantages to sharing the growth, thanks to its “compelling business model as a niche foodservice distributor, a more upscale and differentiated customer base, and the unfolding sales recovery in key markets.” (See Chefs’ Warehouse stock chart on tip ranks)

The analyst is optimistic about the reopening of markets in key regions and the gradual recovery in beneficial areas such as hospitality. These benefits are expected to boost sales this year. Saleh said these advantages, combined with CHEF’s long-term opportunity to increase market share, underscore his bullish stance on the company.

The analyst gave CHEF a Top Pick designation with a Buy rating and a price target of $48. “While the capital structure has changed and the technical hangover from the recent convertible bond issuance appears to remain, we view equities as simply too cheap given the fundamentals,” Saleh said.

The analyst has provided profitable ratings 61% of the time, and each of his ratings has generated an average return of 10.9%.

https://www.cnbc.com/2023/01/15/top-wall-street-analysts-like-these-stocks-amid-easing-inflation.html Top Wall Street analysts like these stocks as inflation eases

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