Our financial futures are rarely predictable. Whether it’s a global pandemic causing lockdowns or a shift in consumer behavior caused by online shopping trends, we never quite know what’s going to happen. Many investors give a lot of weight to the suggestions made by top financial analysts.
Some of the choices in this article didn’t meet their expectations because of poor second-quarter performance. However, others rallied and reported positive developments.
Wall street’s top analysts identified companies with potential for long-term upside, and as such, these businesses are now assigned buy ratings.
Here are five stocks that top experts believe to be long-term buys.
Recent Walmart reports show quality earnings. Peter Benedict of Robert W. Baird & Co. increased his price target from $160 to $170 and maintained his buy rating on the stock.
Benedict likes Walmart’s diversifying revenue streams, especially innovations like Walmart Connect. Notably, the grocery and general merchandise sectors have seen collective gains.
The retail giant increased its international sales by 13% and hit an all-time high for Sam’s Club memberships.
The analyst says that Walmart is “well-positioned regardless of the macro environment” for the second half of 2021, and he argues that business will continue its momentum.
Though the company had a rough position early in the pandemic, Airbnb was able to ride the wave and is now coming along swimmingly. Brian Fitzgerald of Wells Fargo forecasted a strong second half for the company.
The five-star analyst rated Airbnb a buy and raised his target price from $200 to $210.
Fitzgerald based his opinion on the fact that Airbnb’s seeing a spike in shorter, more urban bookings.
He expects that the more lax travel trends are here to stay, as consumers hold onto their hybrid work schedules. Airbnb boasts a wide range of domestic and international property options, and Fitzgerald believes the company is in an advantageous spot to capture the market.
Things have been going well for the company even during the time of coronavirus. Its Nights and Experiences initiative expanded 197%, and it saw gross booking value rise 320% over that same period.
Fitzgerald remains optimistic for the near future, but cautions that the “spread of Covid variants, local travel restrictions and slowing vaccinations are beginning to adversely impact cancellations.”
Advanced Micro Devices
The semiconductor shortage wreaked havoc on several industries earlier this year, especially automotive and computer manufacturers. The supply of silicon chips is slowly creeping back up to meet the high demand.
That brings us to Advanced Micro Device. Vivek Arya of Bank of America believes that the stock is trading at 25% less than what it’s worth—even with the recent price increase.
Arya called the stock a “top catch-up candidate,” rating the stock a buy, and declared a $135 price target.
The analyst noted that the company is poised to grow its gross margins by more than nearly every other semiconductor producer.
Sometimes, even a lackluster second-quarter earnings print can end up being a buying opportunity. If a stock falls drastically, but the investor believes it to be an overreaction, there’s a buying opportunity. This is the thought process of RBC Capital Markets analyst Brad Erickson. He believes that the trends which had a negative effect on Wix.com “appear transitory,” and the company is still a leader in the web design industry.
Erickson doubled down on his buy rating on the stock and assigned a new price target of $270. Though this is lower than his previous $315 target, it still potentially could lead to a decent upside for those willing to make the trade.
Wix’s B2B partnerships have the potential to become recurring opportunities for monetization, the analyst said.
Erickson said he sees Wix’s “increased pursuit of agency channels and the e-commerce opportunity as additional potential upside given the attractive size and recurring nature of these revenue streams.” As long as the e-commerce trend continues upwards, Wix is poised to benefit.
Nio’s performance is projected to improve even more once the semiconductor supply constraints loosen. Vijay Rakesh of Mizuho Securities predicts a path of growth for the Chinese electric vehicle manufacturer.
Rakesh rated the stock a buy and raised his 12-month price target from $65 to $67.
The analyst thinks Nio is “well positioned for growth with premium EV leadership, EV penetration accelerating in China, Europe expansion in 2H21, and mass market offerings potentially in 2022-23.”
In addition to an expectation of increased deliveries, Nio has been heavily investing in an infrastructure network to increase the number of charging stations.
Once the ongoing chip shortage subsides, the company will potentially be able to fully spread its wings.