Analysts are paying attention to these three stocks for many reasons, including the possibility of outperforming them in the fourth quarter.
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This story originally appeared on MarketBeat
The market is now largely dependent on analyst sentiment, as the earnings cycle for the second quarter has almost finished. Analysts are pushing the S&P 500 outlook higher for most of the time which should mean that the index will continue to move higher. Monday’s analyst news from Marketbeat.com included upgrades on three names that we see as important. Not only are these stocks well positioned for revenue and earnings but with the analyst behind them, their share prices should outperform the market for the remainder of the year.
Duolingo, Inc Is A Hot Growth Stock
Duolingo Inc(NYSE: DOL)A language learning app is available in China and the United States. It allows users to learn 40 languages quickly and it is rapidly gaining popularity. Recent reports from the company have shown a solid second quarter. The app has been given several noteworthy upgrades. The company received a Buy rating from Bank of America which views the company as the category leader and an expansion/market-share opportunity in the direct-to-consumer education market. BoAPrice target: $160Compares with the consensus price of $145, and recent price movement near $125.
Analyst Nat Schindler says: “We believe there is a LT opportunity, given the category leadership in language learning as well as the wider direct-to-consumer education sector still at the early stages of digitization.” Duolingo’s large market address, differentiation and extensible platform as well as future growth opportunities will be attractive to investors. This is in contrast with the margins of 6% EBITDA for our model 2023, which we believe warrants a substantial premium over peer group comps.
Market Reaffirms Affirm Holdings
Affirm Holdings (NASDAQ: AFRM)This point-of sale service allows consumers and merchants to make time-lapse payments. It is similar to Katapult Holdings. In the wake of key Amazon.com news, Affirm Holdings saw four price targets being raised. This will result in a rapid increase in revenue. Amazon.com has announced it will add Affirm’s pay-over time features to its check out offerings. This is very good news.
Barclays stands out as the only analyst to upgrade the stock, from Buy to Overweight, but the consensus of the four latest shoutouts is an Overweight or Strong Buy. The consensus price target of Barclays is close to $117, which compares with the $87 consensus and current price action at $97.75. The news has seen share prices rise by nearly 45%, but shareholders still get value. According to our estimates, Truist’s new $120 price target will be exceeded by other analysts’ new estimates and actual stock prices. This is great news for Affirm Holdings.
Crowdstrike is a favorite among the analysts
Last week, cybersecurity stocks were in the spotlight when President Joe Biden held a summit on America’s increasing need for cybersecurity. Four analysts raised their price targets due to the expectation of strong earnings in the second quarter report.Crowdstrike (NASDAQ: CRWD)Stock. Stock.Consensus of buy/strong buyThe price target is $317.50, versus the current market expectation of $270. Crowdstrike is expected to release earnings this week and we anticipate that strong reports will lead to more upgrades.
Shares of the stock are up more than 26% over the last month and look ready to continue moving higher. This weekly chart displays a stock that is in an uptrend, and another one that has just made new highs. Although the indicators look bullish, there’s a chance that upward movements will not stop. Share prices may fall to the 150-day moving mean before rising to new highs if the earnings report does not impress the market.
Publiated at Tue 31 August 2021, 10:14.33 +0000