10 Stocks Gaining Value on Analysts’ Upgrades

In this article, we will discuss the 10 stocks gaining value on analysts’ upgrades.

All three major U.S. indices closed higher on Friday despite a mixed start to the fourth-quarter earnings season from the financial stocks. The four leading U.S. banks, including JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), Wells Fargo & Company (NYSE:WFC) and Citigroup Inc. (NYSE:C), recently posted their Q4 results.

JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corporation (NYSE:BAC) managed to surpass financial expectations for the quarter. However, Wells Fargo & Company (NYSE:WFC) missed sales expectations, while Citigroup Inc. (NYSE:C) failed to meet the profit estimates for Q4.

Meanwhile, notable stocks, including Netflix, Inc. (NASDAQ:NFLX), Caterpillar Inc. (NYSE:CAT) and Halliburton Company (NYSE:HAL), were spotted gaining value after receiving upgrades from analysts.

Jefferies upgraded Netflix, Inc. (NASDAQ:NFLX), citing its ad-supported streaming plan and initiatives like the crackdown on password sharing. In addition, BofA improved its ratings for Caterpillar Inc. (NYSE:CAT), arguing that prices are increasing faster than costs, providing earnings stability in these uncertain times.

On the other hand, Wolfe Research upgraded Halliburton Company (NYSE:HAL), stating that the company’s revenue will be driven by major projects in 2023. Check out the complete article to see some other stocks gaining value on analysts’ upgrades.

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10. Organigram Holdings Inc. (NASDAQ:OGI)

Number of Hedge Fund Holders: 7

Shares of Organigram Holdings Inc. (NASDAQ:OGI) jumped nearly 10 percent on Friday, January 13, after receiving an upgrade from Stifel. Analyst Andrew Partheniou increased his ratings for the cannabis producer from “Hold” to “Buy,” citing its strong financial results for the first quarter. Partheniou also seemed impressed with the company’s positive cash flow in the quarter.

Organigram Holdings Inc. (NASDAQ:OGI) recently posted better-than-expected financial results for its fiscal Q1. The company generated revenue of $43.3 million, representing a surge of 43 percent over the comparable period of 2022. In addition, net income for the quarter stood at $5.3 million versus a loss of $1.3 million for the year-ago period.

9. Cinemark Holdings, Inc. (NYSE:CNK)

Number of Hedge Fund Holders: 23

JPMorgan analyst David Karnovsky turned bullish on Cinemark Holdings, Inc. (NYSE:CNK) on Thursday, January 12. Karnovsky upgraded the Texas-based movie theater chain from “Neutral” to “Overweight.”

The analyst, who has a price target of $15 for Cinemark Holdings, Inc. (NYSE:CNK), sees continuous recovery at the North America box through 2024. He believes increasing new movie releases from traditional studios will fuel the recovery.

According to Karnovsky, Cinemark Holdings, Inc. (NYSE:CNK) is well set to increase its market share, given its solid operating history and strong financial position. Cinemark stock jumped more than 10 percent on January 12 following the upgrade.

8. Wix.com Ltd. (NASDAQ:WIX)

Number of Hedge Fund Holders: 26

Wix.com Ltd. (NASDAQ:WIX) is a cloud-based platform helping individuals and businesses create websites using drag-and-drop tools. The company, based in Israel, also offers solutions that can be used to manage various business aspects like sales, reservations and appointments.

The Israeli software company came into the spotlight after receiving an upgrade from RBC Capital on Thursday, January 12. The research firm improved its ratings for Wix.com Ltd. (NASDAQ:WIX) from “Sector Perform” to “Outperform,” citing its pricing power and healthy free cash flow position.

Wix.com Ltd. (NASDAQ:WIX) shares rose for two straight days following the upgrade.

Analyst Brad Erickson thinks Wix.com Ltd. (NASDAQ:WIX) will capitalize on the structurally greater new business formation compared to pre-pandemic levels. Erickson also raised his price target for WIX stock from $80 per share to $100 per share.

7. CommScope Holding Company, Inc. (NASDAQ:COMM)

Number of Hedge Fund Holders: 29

Shares of CommScope Holding Company, Inc. (NASDAQ:COMM) rallied over 13 percent on Thursday, January 12, after BofA analyst Tal Liani improved his ratings for the  network infrastructure provider from “Underperform” to “Buy.”

Liani expects CommScope Holding Company, Inc. (NASDAQ:COMM) to generate annual free cash flow in the range of $600 – $700 million. In addition, he believes a $1 billion debt reduction could lift CommScope stock by 140 percent. The analyst also raised his price target for the North Carolina-based company from $8 per share to $15 per share.

Like CommScope Holding Company, Inc. (NASDAQ:COMM), analysts also improved their ratings for Netflix, Inc. (NASDAQ:NFLX), Caterpillar Inc. (NYSE:CAT) and Halliburton Company (NYSE:HAL).

6. Oak Street Health, Inc. (NYSE:OSH)

Number of Hedge Fund Holders: 30

Raymond James upgraded Oak Street Health, Inc. (NYSE:OSH) from “Market Perform” to “Outperform” on Thursday, January 12. The upgrade came after multiple news agencies reported that CVS Health Corporation (NYSE:CVS) plans to buy Oak Street for $10 billion.

Oak Street Health, Inc. (NYSE:OSH) shares have skyrocketed more than 30 percent following the rumors. The stock is currently trading very close to its 52-week high of $30.89.

CVS Health Corporation (NYSE:CVS) is reportedly in discussions with Oak Street Health, Inc. (NYSE:OSH). However, the negotiations could end without a deal. Through acquisitions, CVS has been trying to strengthen its foothold in the healthcare space. For instance, it agreed to buy Signify Health in a deal valued at $8 billion last year.

5. TransUnion (NYSE:TRU)

Number of Hedge Fund Holders: 34

TransUnion (NYSE:TRU) shares advanced nearly three percent on Friday, January 13, after Wells Fargo analyst Seth Weber improved his ratings for the consumer credit reporting agency from “Equal-Weight” to “Overweight.”

Weber thinks the stock currently offers an attractive entry point considering its significant underperformance in recent months. He also lifted his price target for TransUnion (NYSE:TRU) from $70 per share to $88 per share.

Separately, equity investment management firm TimesSquare Capital also briefly discussed TransUnion (NYSE:TRU) in its third-quarter 2022 investor letter. Here’s what the firm said:

“TransUnion (NYSE:TRU) is a credit bureau providing risk and information services. Share price weakness of -25% stems from weaker-than-expected results and a reduction in forward guidance; some of which is attributable to lower mortgage volumes. We have been reducing this position for most of 2022, and plan to exit completely.”

4. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 42

Credit Suisse upgraded The Boeing Company (NYSE:BA) from “Underperform” to “Neutral” to Thursday, January 12. Analyst Scott Deuschle was primarily moved by the company’s improved operational performance.

Deuschle also pointed towards strong aircraft deliveries and an upside for free cash flow in the fourth quarter. In addition, the analyst raised his price target for The Boeing Company (NYSE:BA) from $121 per share to $200 per share.

Shares of The Boeing Company (NYSE:BA) rose over three percent on January 12 following the upgrade.

3. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 43

Caterpillar Inc. (NYSE:CAT) shares hit a new 52-week high of $258.58 on Friday, January 13, after BofA analyst Michael Feniger turned bullish on the construction-equipment manufacturer.

Feniger raised his ratings for Caterpillar Inc. (NYSE:CAT) from “Neutral” to “Buy” and lifted his price target from $217 per share to $295 per share. The analyst thinks prices are increasing faster than costs, providing earnings stability in these uncertain times. He also expects Caterpillar to post stable results for Q4 and Q1.

2. Halliburton Company (NYSE:HAL)

Number of Hedge Fund Holders: 48

Wolfe Research upgraded Halliburton Company (NYSE:HAL) from “Underperform” to “Outperform,”     sending its shares to a nearly one-year high on Thursday, January 12.

Analyst Sam Margolin sees the oil field service giant boosting revenue from major projects this year. Margolin has a price target of $51 per share for Halliburton Company (NYSE:HAL), compared to the stock’s current trading price of around $42.

Meanwhile,  investment advisor Aristotle Atlantic Partners also talked about Halliburton Company (NYSE:HAL) in its third-quarter 2022 investor letter, stating:

“Halliburton Company (NYSE:HAL) provides energy, engineering and construction services and is a manufacturer of products for the energy industry. The company offers services and products and integrated solutions to customers in the exploration, development, and production of oil and natural gas. Halliburton operates two business segments: Completion & Production and Drilling & Evaluation.

Our conviction in longer-term operating leverage is supported by the focus on improving cost structures. Upstream oil and gas spending over the longer term can benefit Exploration & Production (E&P) firms from sustained high oil and gas prices and a renewed urgency in global energy security. We believe the rightsizing of the company’s cost structure and forward focus on margins at the same time as E&Ps respond to new investment signals will drive both topline and bottom-line growth.”

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 115

Netflix, Inc. (NASDAQ:NFLX) recently came into the limelight after receiving an upgrade from Jefferies. The research firm upgraded the video-streaming giant from “Hold” to “Buy” on Thursday, January 12.

Analyst Andrew Uerkwitz thinks the company’s ad-supported streaming plan and initiatives like the crackdown on password sharing will drive sales in the coming quarters. Uerkwitz raised his price target for Netflix, Inc. (NASDAQ:NFLX) from $310 per share to $385 per share.

Separately, Oppenheimer also increased its price target for Netflix, Inc. (NASDAQ:NFLX) from $365 per share to $400 per share on Friday, January 13. Netflix stock inched higher in the last couple of trading sessions following latest coverage from these research firms.

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Disclosure: None. 10 Stocks Gaining Value on Analysts’ Upgrades is originally published on Insider Monkey.