Analysts recommend these improved stocks for December. The S&P 500’s steady march to new all-time highs continued in November and…
Analysts recommend these improved stocks for December.
The S&P 500’s steady march to new all-time highs continued in November, and the index will likely end its third consecutive calendar year of double-digit percentage gains. The Federal Reserve finally started cutting back on monthly asset purchases in November, and investors are now focused on still high inflation, supply chain disruptions, labor market shortages and the new omicron variant. COVID-19 by 2022. Despite the uncertainties, analysts are generally optimistic about the economic outlook, and CFRA’s research team sees new investment opportunities in December. Here are nine recently improved stocks to buy, according to the CFRA.
Bank of America Corp. (ticker: BAC)
Bank of America has had a great year, as the stock roughly doubled the return on the S&P 500 in 2021. CFRA analyst Kenneth Leon improved on the stock in November and said Bank of America was in a tight spot. Even better position as we approach a 2022 environment of growth in loan volumes and rising interest rates. Leon expects Federal Reserve rate hikes starting in the third quarter of 2022 and says Bank of America is already generating significant net interest income relative to other major U.S. banks. CFRA has a “buy” rating and a target price of $ 51 for the BAC stock, which closed at $ 44.47 on November 30.
Cboe Global Markets Inc. (CBOE)
Cboe Global Markets owns the Chicago Board Options Exchange and the Better Alternative Trading System, or BATS, the stock operator of Global Markets. Analyst Alexander Yokum has improved the CBOE and says the stock has several bullish catalysts, including its global expansion, new nano options and growing recurring income. Yokum says investors do not fully appreciate CBOE’s opportunity to gain international market share and believes recurring revenue growth will continue to outpace transaction revenue growth in 2022 and beyond. Yokum says CBOE’s margins are also expected to increase following the integration of BIDS Trading LP and other recent acquisitions. CFRA has a “buy” rating and a price target of $ 145 for CBOE stock, which closed at $ 128.94 on November 30.
Oatly AB Group (OTLY)
Oatly is the world’s largest producer of oat milk. Analyst Arun Sundaram improved on Oatly and said the stock’s valuation was “too attractive to ignore”. By comparison, Oatly trades at a lower enterprise value to sales ratio than Beyond Meat Inc. (BYND). Sundaram predicts compound annual growth of 33% in revenue for Oatly and just 26% for Beyond over the next decade. Sundaram says Oatly’s short-term production and capacity headwinds are temporary, and sales growth and margins are expected to improve next year. Sundaram predicts sales growth of 69% in 2022. CFRA has a “buy” rating and a price target of $ 15 for the OTLY stock, which closed at $ 8.95 on November 30.
Fair Isaac Corp. (FICO)
Fair Isaac provides predictive software solutions and its ubiquitous FICO credit score data. Analyst John Freeman improved on Fair Isaac and said the stock is attractively valued and is trading well below its long-term average earnings multiple. In addition, Freeman enjoys the company’s high margin credit checking business, which he says will increase revenues 9% to 13% through 2024 and generate substantial operating leverage. Freeman is concerned about the long-term health of the company’s software business, but sees any software recovery as a “pure benefit” to Fair Isaac. CFRA has a strong buy rating and a price target of $ 495 for the FICO stock, which closed at $ 353.13 on November 30.
NICE Ltd. (NICE)
NICE provides applications to manage call center operations and customer interactions. Freeman improved NICE and says the company has impressive fundamentals, a strong management team and multiple growth engines. NICE’s CXone is the best contact center-as-a-service platform, according to analyst firms Gartner and Forrester. NICE has also advanced in the use of deep learning and natural language processing to predict customer behavior and make recommendations based on word choice, tone of voice, and other variables. Finally, Freeman says that NICE has become one of the early market leaders in robotic process automation applications. CFRA has a “strong buy” rating and a target price of $ 406 for the NICE stock, which closed at $ 291.98 on November 30.
Tapestry Inc. (TPR)
Tapestry markets luxury accessories and owns the Coach, Kate Spade and Stuart Weitzman lifestyle brands. Analyst Zachary Warring has improved Tapestry and said the company is returning to steady growth thanks in large part to its expansion into China. Tapestry is also strengthening its online retail business, reducing its reliance on wholesale, investing its cash flow in digital marketing and returning capital to shareholders through buybacks and a 2.4% dividend. Warring says the return of international travel over the next 12 months will also be a tailwind for Tapestry. CFRA has a “buy” rating and a price target of $ 55 for TPR stock, which closed at $ 40.13 on November 30.
MKS Instruments Inc. (MKSI)
MKS Instruments produces power supplies, control and analysis components, and vacuum products used in semiconductor manufacturing, industrial and life science markets. Analyst Zachary Warring upgraded MKS and said the company has tremendous momentum following recent design and market share gains. Warring says MKS is able to capitalize on increased capital spending by manufacturers of semiconductor equipment and devices in 2022. He says MKS Instruments’ announced acquisition of Atotech will provide a stable revenue stream , 40% of which is recurring income. CFRA has a “strong buy” rating and a price target of $ 210 for the MKSI stock, which closed at $ 152.16 on November 30.
Teradata Corp. (TDC)
Teradata provides business data, analytics, and advisory services. Analyst David Holt upgraded Teradata and said its recent trade slippage was fully incorporated into the stock price, which has fallen more than 20% over the past month. The company has also reset its expectations, creating the potential for upward revisions in the coming quarters. Teradata’s futures earnings multiple of 24 represents a significant discount from other cloud-based direct data peers. Holt says the company’s historic activity is weighing on its valuation, but he sees a potential for significant expansion in earnings multiples. CFRA has a “buy” rating and a price target of $ 60 for TDC stock, which closed at $ 43.42 on November 30.
Fortinet inc. (FTNT
Fortinet is a global cybersecurity and networking solutions company. Analyst Janice Quek upgraded the stock and said Fortinet had clear bullish momentum after three consecutive stellar quarters. Quek says the rise of remote working has created more complex technology and security challenges, forcing companies to upgrade their security infrastructure. Fortinet’s sales growth has been impressive, and industry supply chain issues have allowed the company to raise prices and increase margins. Fortinet stocks have been hot, but Quek says tech upgrade cycles are typically multi-year events. CFRA has a “buy” rating and a target price of $ 443 for the FTNT stock, which closed at $ 332.11 on November 30.
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9 improved stocks to buy in December originally appeared on usnews.com