Analysts are Upgrading These 10 Stocks

Published October 5, 2022 at 6:17 pm EDT Updated September 7, 2026 at 11:40 am EDT

In this article, we will take a look at the 10 stocks recently upgraded by analysts.

U.S. stocks turned red on Wednesday morning after staying in positive territory during the last two trading sessions. Meanwhile, a rebound in Treasury yield also dragged down the stock market this morning. As of 11:36 AM ET, S&P 500 was down 1.43 percent, Dow Jones Industrial Average was negative 1.11 percent and Nasdaq Composite slid 1.79 percent.

In addition, oil continued its upward journey as OPEC+ decided to trim production by two million barrels a day. Many believe the decision could spark another rally in oil prices. On the other hand, World Trade Organization cautioned that elevated energy costs and higher interest rates could significantly hurt global trade in the coming quarters.

Meanwhile, several notable stocks, including Walmart Inc. (NYSE:WMT), Ford Motor Company (NYSE:F) and The Charles Schwab Corporation (NYSE:SCHW), received upgrades from Wall Street analysts this morning.

In addition, Box, Inc. (NYSE:BOX) and Illumina, Inc. (NASDAQ:ILMN) are also on the list of 10 stocks recently upgraded by analysts. Check out the full article to see the reasons behind the updated ratings for these companies.

Photo by Adam Nowakowski on Unsplash

10. Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Number of Hedge Fund Holders: 14

Odeon Capital improved its ratings for Bed Bath & Beyond Inc. from “Sell” to “Hold” on Friday, September 30, 2022. While analyst Alexander Arnold acknowledged the company’s existing issues, he believes things have started moving in the right direction.

Arnold also pointed towards recently secured financing, saying it should help the New Jersey-based retailer get back on track. The upgrade came a day after Bed Bath & Beyond Inc. released its fiscal second-quarter results.

Bed Bath & Beyond Inc. reported an adjusted loss of $3.22 per share, wider than analysts’ average forecast for a loss of $1.79 per share. Revenue for the quarter plummeted 28 percent versus last year to $1.44 billion, nearly in line with expectations.

Moving forward, Bed Bath & Beyond Inc. plans to save $250 million during the second half of the year. Moreover, it intends to shut more than 100 stores by the end of fiscal 2022.

9. Credicorp Ltd. (NYSE:BAP)

Number of Hedge Fund Holders: 17

Shares of Credicorp Ltd. (NYSE:BAP) rose nearly six percent on Tuesday, October 4, 2022, after Citi analyst Rafael Frade turned bullish on the financial services company, citing Peru’s recovering economy.

Frade believes Credicorp Ltd. is well set to capitalize on the elevated interest rates. He lifted his ratings for the Peru-based company from “Neutral” to “Buy” and increased his price target from $128.05 per share to $161 per share.

Earlier this year, investment management firm Diamond Hill Capital also talked about Credicorp Ltd. in its first-quarter 2022 investor letter, stating:

“Credicorp shares outperformed on continued fundamental improvements, better-than-expected FY2022 guidance, positive sentiments on rising rates and higher commodities prices globally, of which Peru is a beneficiary.”

8. Box, Inc. (NYSE:BOX)

Number of Hedge Fund Holders: 25

Shares of Box, Inc. rose for two straight days, gaining more than 12 percent, after receiving an upgrade from Morgan Stanley on Monday, October 3, 2022. The research firm improved its ratings for the content sharing platform from “Equal Weight” to “Overweight.”

Morgan Stanley analyst Josh Baer was primarily moved by the company’s higher net retention and lower churn rate. Baer thinks the company’s increasing mix of suites would lead to higher pricing, stronger retention, and bigger deals. He also lifted his price target for Box, Inc. from $32 per share to $34 per share.

Like Box, Inc., analysts also lifted their ratings for Walmart Inc., Ford Motor Company and The Charles Schwab Corporation.

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

Number of Hedge Fund Holders: 28

Shares of CommScope Holding Company, Inc. (NASDAQ:COMM) jumped more than 17 percent on Tuesday, October 4, 2022, after Credit Suisse analyst Sami Badri raised his ratings for the network infrastructure provider from “Neutral” to “Outperform.”

Badri thinks the company’s core product segments will continue to benefit from government funding for building broadband and connectivity infrastructure in the coming years. Badri added that the company’s resilient sales growth in the current macro environment would also help in debt reduction. He lifted his price target for CommScope Holding Company, Inc. from $11 per share to $17 per share.

CommScope Holding Company, Inc. shares are currently trading around $11.7, very close to their 52-week high of $12.88. Meanwhile, the company’s market value is hovering around $2.4 billion.

6. Illumina, Inc. (NASDAQ:ILMN)

Number of Hedge Fund Holders: 44

Shares of Illumina, Inc. rose to a nearly one-month high on Tuesday, October 4, 2022. The surge came after SVB Securities upgraded the DNA sequencing company from “Market Perform” to “Outperform,” citing the launch of its NovaSeq X+ series.

Illumina, Inc. recently lifted the curtains from its latest sequencing machines that are two-fold faster and accurate than their predecessors. The company said the launch would significantly reduce the cost of genome sequencing.

Discussing the development, CEO of Illumina, Inc., Francis deSouza, said in a statement:

“Innovations like NovaSeq X are at the heart of how we will transform patient lives, and this groundbreaking technology will empower researchers, scientists, and clinicians in the fight to diagnose, treat – and eventually cure – disease while making genomics more sustainable and accessible to millions more people around the world.”

5. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 46

Shares of Ford Motor Company inched higher in pre-market trading Wednesday, October 5, after Morgan Stanley analyst Adam Jonas raised his ratings for the Michigan-based automaker from “Equal Weight” to “Overweight.”

Jonas sees a buying opportunity after the recent drop in Ford shares. He believes the company’s revised guidance for Q3 has already been mirrored in its stock price. Jonas also thinks that Ford Motor Company is doing better than General Motors (GM) in terms of business portfolios and strategy.

The upgrade came a day after Ford Motor Company posted its vehicle sales for the third quarter. The company sold 464,674 units in the quarter, up from 400,843 units in the corresponding period of 2021.

4. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 52

Shares of CF Industries Holdings, Inc. (NYSE:CF) rallied for two consecutive trading sessions after receiving an upgrade from RBC Capital on Monday, October 3, 2022. The research firm improved its ratings for the fertilizer manufacturer from “Sector Perform” to “Outperform.”

Analyst Andrew Wong thinks CF Industries Holdings, Inc. should capitalize on the favorable nitrogen market forecast. Wong also expects potential upward revisions in the consensus expectations due to strong demand and higher prices. He raised his price target for CF stock from $110 per share to $135 per share.

Separately, asset management firm Chartwell Investment Partners mentioned CF Industries Holdings, Inc. in its second-quarter 2022 investor letter, stating:

“We sold the full position in fertilizer company CF Industries, which also had a 20%+ YTD return (through 6/30), as we had concerns that the company would announce capacity additions, which would negatively impact nitrogen pricing.”

3. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 67

Erste Group turned bullish on Walmart Inc. on Wednesday, October 5. The research firm raised its ratings for the retail giant from “Hold” to “Buy,” citing its stable sales growth.

Analyst Hans Engel thinks the company’s moderate growth rate will continue in the coming years. Moreover, Engel predicted a marginal increase in Walmart’s operating margin next year. He also believes Walmart Inc. shares would continue to outperform the broad sector.

Walmart Inc. has been facing low sales lately, especially in its e-commerce segment. The company recently launched Walmart Land and Walmart’s Universe of Play to revive its slowing online sales.

The company partnered with metaverse platform Roblox to roll out these two immersive virtual experiences. Walmart Inc. intends to entice young customers with the latest launch.

2. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 68

Erste Group raised its ratings for The Charles Schwab Corporation from “Hold” to “Buy” on Wednesday, October 5, 2022. Analyst Hans Engel expects the financial services company to achieve positive profit and revenue growth this year.

While Engel expects the growth rates to be down on a year-over-year basis, he expects them to be above the sector average. The Charles Schwab Corporation shares marginally moved down on Wednesday morning despite the upgrade.

Meanwhile, The Charles Schwab Corporation also appeared in the second-quarter 2022 investor letter of asset management firm Baron Funds. Here’s what the firm said:

“Shares of online brokerage firm The Charles Schwab Corporation (NYSE:SCHW) detracted in the quarter over concerns that clients will shift assets to less profitable money market funds and declining equity markets will pressure the asset management business. We retain conviction. Despite turbulent markets, Schwab attracted over $120 billion of net new client assets in the recent quarter. Rising interest rates should lead to increased profits on the company’s nearly $600 billion of interest earning assets as well.”

1. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 71

Shares of ConocoPhillips (NYSE:COP) rose in pre-market trading Wednesday, October 5, after Erste Group improved its ratings for the crude oil producer from “Hold” to “Buy,” citing elevated energy prices.

The research firm believes ConocoPhillips is taking advantage of increasing global energy prices. Erste Group added that the company would continue to enjoy a high operating margin next year.

Earlier this year, investment management firm Diamond Hill Capital discussed ConocoPhillips in its first-quarter 2022 investor letter. Here’s what the firm said:

“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”

You can also take a peek at 10 Best Consumer Discretionary Stocks To Buy and 10 Best Cyclical Stocks for Inflation.

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