In this article, we will take a look at the 10 stocks that received updated price targets from analysts after their recent earnings.
The Dow Jones Industrial Average and S&P 500 gained 1.27 percent and 0.04 percent, respectively, as of 01:21 PM ET today. The surge was apparently driven by positive GDP data for the third quarter. The data showed that U.S. GDP improved 2.6 percent in the September quarter, above analysts’ average estimate calling for a gain of 2.4 percent. On the other hand, the 10-year Treasury yield dropped below 4 percent, adding to the gains of these indices.
However, the tech-dominated Nasdaq Composite once again fell on Thursday morning following disappointing financial results of Meta Platforms, Inc. (NASDAQ:META). The social network giant missed earnings expectations for Q3 and issued a weak sales outlook for the current quarter.
The latest earnings sent Meta Platforms, Inc. shares down to a nearly seven-year low. Meanwhile, several analysts trimmed their price targets for Meta Platforms, Inc., following the results.
In addition, ServiceNow, Inc. (NYSE:NOW) and Canadian Pacific Railway Limited (NYSE:CP) were also among the notable companies that received updated price targets from analysts after their recent earnings. Check out the complete article to see why analysts revised their price targets for these stocks.
10. IDEX Corporation (NYSE:IEX)
Number of Hedge Fund Holders: 25
Mizuho lifted its price target for IDEX Corporation (NYSE:IEX) from $205 per share to $208 per share on Thursday, October 27. The research firm’s increased price reflects the company’s better-than-expected Q3 results.
IDEX Corporation recently reported adjusted earnings of $2.14 per share, topping the consensus of $2 per share. The third-quarter revenue also jumped 16 percent versus the year-ago period to $824 million, smashing the expectations of $780.88 million.
In addition, IDEX Corporation also improved its full-year adjusted earnings outlook to a range of $8.04 – $8.09 per share.
9. V.F. Corporation (NYSE:VFC)
Number of Hedge Fund Holders: 29
JPMorgan slashed its price target for V.F. Corporation (NYSE:VFC) from $35 per share to $29 per share on Thursday, October 27. Analyst Tom Nikic was primarily moved by the apparel and footwear company’s revised profit outlook for the full year.
V.F. Corporation recently decreased its fiscal 2023 adjusted profit outlook to a range of $2.40 – $2.50 per share, from its previous projection between $2.60 – $2.70 per share. The company blamed currency headwinds and elevated inventory levels for the weakness.
The Denver-based company updated the outlook along with its fiscal second quarter results. V.F. Corporation reported adjusted earnings of 73 cents per share, below the consensus of 75 cents. Revenue for the quarter declined about 4 percent on a year-over-year basis to $3.1 billion, nearly matching expectations.
8. Teladoc Health, Inc. (NYSE:TDOC)
Number of Hedge Fund Holders: 32
Barclays trimmed its price target for Teladoc Health, Inc. (NYSE:TDOC) from $33 per share to $32 per share on Thursday, October 27. The price-target cut apparently came after Teladoc reduced the upper end of its 2022 adjusted EBITDA outlook from $265 million to $250 million.
Nevertheless, Teladoc Health, Inc. shares climbed over 10 percent on Thursday morning following its impressive financial results for the third quarter. The virtual healthcare company reported a loss of 45 cents per share, narrower than a loss of 53 cents per share in the year-ago period.
In addition, Teladoc Health, Inc. posted revenue of $611.4 million, representing a surge of 17 percent on a year-over-year basis. The results were better than analysts’ average estimate for a loss of 55 cents per share on revenue of $608.76 million.
Like Teladoc Health, Inc., analysts also revised their price targets for Meta Platforms, Inc., ServiceNow, Inc. and Canadian Pacific Railway Limited, after their recent earnings.
7. Align Technology, Inc. (NASDAQ:ALGN)
Number of Hedge Fund Holders: 33
Shares of Align Technology, Inc. (NASDAQ:ALGN) plunged to a new 52-week low on Thursday, October 27, after posting disappointing financial results for the third quarter. Several analysts cut their price targets for the medical device company following its weak quarterly performance.
Piper Sandler analyst Jason Bednar cut his price target for Align Technology, Inc. from $300 to $230, while Stifel analyst Jonathan Block trimmed his price target for the stock from $325 to $265. Both analysts were primarily moved by the company’s recent earnings.
Meanwhile, Align Technology, Inc. attributed the weak performance to macroeconomic uncertainty, unfavorable foreign exchange rates and fading consumer confidence.
Overall, Align Technology, Inc. reported adjusted earnings of $1.36 per share for the third quarter, well below $2.87 per share in the corresponding period of 2021. Sales also dropped 12.4 percent versus last year to $890.3 million. The results missed analysts’ average estimate of $2.21 per share for earnings and $974.89 million for revenue.
6. O’Reilly Automotive, Inc. (NASDAQ:ORLY)
Number of Hedge Fund Holders: 41
Shares of O’Reilly Automotive, Inc. climbed to a new 52-week high on Thursday, October 27, after crushing financial expectations for the third quarter. The impressive performance compelled Wells Fargo to raise its price target for the auto parts retailer from $800 per share to $850 per share.
O’Reilly Automotive, Inc. reported earnings of $9.17 per share, up from $8.07 per share in the year-ago period. Revenue for the quarter also advanced 9 percent versus last year to $3.80 billion. Analysts were looking for earnings of $8.47 per share on revenue of $3.71 billion.
Looking forward, O’Reilly Automotive, Inc. guided for earnings in the range of $32.35 – $32.85 per share and revenue between $14.1 – $14.3 billion for the full year.
Speaking on the results, CEO of O’Reilly Automotive, Inc., Greg Johnson, said in a statement:
“We are pleased to report very strong performance in the third quarter, highlighted by a 7.6% increase in comparable store sales and an incredible three-year stacked comparable store sales increase of 31.2%.”
5. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 42
RBC Capital lifted its price target for General Dynamics Corporation (NYSE:GD) from $270 per share to $275 per on Thursday, October 27. The research firm was moved by the aerospace company’s Q3 results, particularly by the solid performance of its aerospace segment.
The price-target hike came a day after General Dynamics Corporation posted better-than-expected results for the third quarter. The Virginia-based company reported earnings of $3.26 per share, up from $3.07 per share in the year-ago period and above expectations of $3.15 per share.
Revenue for the quarter rose 4.3 percent versus last year to $10 billion, beating the consensus of $9.92 billion. General Dynamics Corporation also released its segment-wise sales results.
Revenue from its aerospace unit climbed 13.6 percent to $2.35 billion, while revenue from the marine systems unit increased 5 percent to $2.77 billion in the quarter.
4. Canadian Pacific Railway Limited (NYSE:CP)
Number of Hedge Fund Holders: 42
Barclays improved its price target for Canadian Pacific Railway Limited from $77 per share to $81 per share on Thursday, October 27, following the company’s third-quarter results.
Canadian Pacific Railway Limited reported adjusted earnings of C$1.01 per share on revenue of C$2.31 billion. The results were slightly higher than the consensus forecast. Speaking on the results, CEO of Canadian Pacific Railway Limited, Keith Creel, said:
“CP’s unique growth initiatives coupled with a robust Canadian grain harvest provide a strong volume backdrop as we finish the year. We are well-positioned to carry the momentum we gained in the third quarter through the rest of the year and beyond.”
3. Roper Technologies, Inc. (NYSE:ROP)
Number of Hedge Fund Holders: 48
Roper Technologies, Inc. (NYSE:ROP) recently delivered impressive financial results for the third quarter and raised its outlook for the full year. Referring to its recent earnings, Wells Fargo improved its price target for the diversified industrial company from $500 per share to $540 per share on Thursday, October 27.
The Florida-based company earned $3.67 per share on an adjusted basis, topping the expectations of $3.46 per share. Revenue for the quarter rose 10 percent versus last year to $1.35 billion, while analysts expected Roper Technologies, Inc. to generate revenue of $1.32 billion.
For fiscal 2022, Roper Technologies, Inc. increased its adjusted earnings outlook to a range of $14.09 – $14.13 per share, from its previous projection between $13.46 – $13.62 per share. The updated outlook is significantly higher than the consensus of $13.61 per share.
2. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 99
Truist cut its price target for ServiceNow, Inc. from $550 per share to $525 per share on Thursday, October 27. The research firm pointed towards currency headwinds that continue to impact the top-line results of ServiceNow.
The price-target cut follows the software company’s mixed results for Q3. ServiceNow, Inc. posted sales of $1.831 billion for the quarter, marginally below the consensus of $1.85 billion.
On the bright side, ServiceNow, Inc. reported adjusted earnings of $1.96 per share, easily beating the estimates of $1.84 per share. ServiceNow stock jumped over 12 percent on Thursday morning following the results.
Separately, ServiceNow, Inc. also appeared in the third-quarter 2022 investor letter of investment management firm Ensemble Capital Management. Here’s what the firm said:
“ServiceNow, Inc. (NYSE:NOW) (-20.6%): While ServiceNow’s mission critical software is an area we expect to remain very resilient even in the face of a difficult macro-economic environment, the company has seen a slow down in new deals closing particularly in Europe. ServiceNow’s software helps large enterprises shift workflows onto a cloud-based software platform and is a key tool to enable digital transformation. This transformation is something that all large companies will need to grapple with as they seek to drive revenue and lower costs by making their business processes more efficient.”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. is in deep trouble after posting financial results for the third quarter. Meta stock plunged to its lowest price in nearly seven years after the opening bell on Thursday, October 27.
The social network giant reported adjusted earnings of $1.64 per share, well below $3.22 per share in the comparable period of 2021. The numbers also missed analysts’ average estimate of $1.86 per share.
In addition, Meta Platforms, Inc. posted revenue of $27.7 billion, representing a drop of 4 percent over the corresponding period of 2021. However, it was nearly in line with the consensus forecast.
Investors were also disappointed with its fourth-quarter sales guidance. Meta Platforms, Inc. projected revenue of $30 – $32.5 billion for the December quarter. The midpoint of the outlook fell short of $32.4 billion estimated by analysts.
Meanwhile, several research firms cut their price targets for Meta Platforms, Inc. on Thursday, October 27, following its weak quarterly report. Canaccord lowered its price target for the stock from $250 to $200, JPMorgan slashed its price target from $180 to $115 and Deutsche Bank trimmed its price target from $170 to $125.
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This article is originally published at Insider Monkey.
