In this article, we discuss the 5 stocks receiving upgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts Are Upgrading These 10 Stocks.
05. Everest Re Group, Ltd. (NYSE:RE)
Number of Hedge Fund Holders: 41
Everest Re Group, Ltd. (NYSE:RE) is a Bermuda-based insurance and reinsurance company. The company operates in over 100 countries across the globe, including the US. Everest Re Group, Ltd. (NYSE:RE)’s health insurance segment includes medical stop loss, short-term medical, pro sports disability, managed care, and group personal accident.
On July 7, Everest Re received a notable upgrade from Raymond James analyst C. Gregory Peters. The upgrade raised the stock’s rating from Outperform to Strong Buy. Additionally, Peters set a price target of $450, representing an increase from the previous target of $420. This upgrade by Raymond James suggests a strong belief in Everest Re’s potential, indicating an optimistic outlook for the stock’s performance.
ClearBridge Value Equity Strategy made the following comment about Everest Re Group, Ltd. (NYSE:RE) in its Q4 2022 investor letter:
“Everest Re Group, Ltd. (NYSE:RE), in the financials sector, is a reinsurance and property and casualty insurer that has been improving operations and reducing risk. The reinsurance market has transitioned to a very “hard” market in the wake of hurricane Ian and structurally rising reinsurance losses. The demand for reinsurance is estimated to be up over $30 billion, with capital supply down by over $50 billion, which indicates that reinsurance pricing is set to increase 30% to 70% globally in 2023, creating an extremely positive fundamental driver for Everest Re. As a result, Everest Re should enjoy earnings growth in 2023 that is largely insulated from macro risks, and we were able to capitalize on the stock trading close to book value before the reality of this supply/demand mismatch was reflected in the price.”
04. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 52
Newmont Corporation (NYSE:NEM) is a mining company that produces a variety of metals such as gold, copper, zinc, lead, and silver. Barclays analyst Matthew Murphy, on July 7, upgraded Newmont Corporation (NYSE:NEM) from Equal-Weight to Overweight. However, he slightly lowered the price target from $62 to $61. This upgrade suggests that Murphy has a more positive outlook on the stock’s performance and believes it has the potential to outperform. Despite the slight adjustment to the price target, the overall sentiment is bullish.
03. First Horizon Corporation (NYSE:FHN)
Number of Hedge Fund Holders: 60
First Horizon Corporation (NYSE:FHN) is a prominent regional financial services company. Its subsidiary, First Horizon Bank, operates in 12 states across the southern U.S. The company and its subsidiaries provide a wide range of financial services. On July 6, Raymond James analyst Michael Rose upgraded First Horizon Corporation (NYSE:FHN) from Market Perform to Outperform. Additionally, Rose has set a price target of $13 for the stock. This upgrade indicates a more positive outlook on First Horizon Corporation (NYSE:FHN) performance, suggesting that the stock has the potential to outperform its market peers.
02. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 72
ConocoPhillips (NYSE:COP) is an oil and gas company with operations all over the world. According to Wolfe Research analyst Sam Margolin’s research note on July 7, ConocoPhillips (NYSE:COP) has been upgraded from Peerperform to Outperform. Along with the upgrade, Margolin has set a price target of $120. This suggests that the analyst expects ConocoPhillips (NYSE:COP) to outperform its industry peers and reach a target price of $120. Investors should take note of this upgraded recommendation from Wolfe Research when evaluating ConocoPhillips (NYSE:COP) as a potential investment opportunity.
Smead Value Fund made the following comment about ConocoPhillips (NYSE:COP) in its first quarter 2023 investor letter:
“Our biggest detractors were mainly a function of the decline in oil and gas prices. Ovintiv (OVV), which absorbed some of our Continental Resources proceeds and ConocoPhillips (NYSE:COP), declined the most. Bank of America (BAC) got hammered by the Silicon Valley Bank meltdown and fears about our financial system. We’ve owned BAC for over ten years and it has outperformed the rest of our portfolio.”
01. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 112
JPMorgan Chase & Co. (NYSE:JPM) is a successful and reputable financial services company offering various services. Its ability to adapt to market changes, provide valuable insights, and manage risk has contributed to its continued success. In a recent report issued on July 7, Wolfe Research upgraded the shares of JPMorgan Chase & Co. (NYSE:JPM) from a “peer perform” rating to an “outperform” rating. Additionally, they have set a price target of $170 for the stock. This upgrade suggests that Wolfe Research expects JPMorgan Chase & Co. (NYSE:JPM) to outperform its industry peers and reach a target price of $170.
Manole Capital Management made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its second quarter 2023 investor letter:
“It will be interesting to see what kind of policy decisions are made around regulation for institutions that are between $100 billion of assets and $700 billion of assets. As JPMorgan Chase & Co. (NYSE:JPM)’s purchase of First Republic shows, scale is a competitive advantage. It now has 13% of total US deposits and it manages 21% of America’s credit card spending. With additional regulatory burdens coming, banks are facing a profitability headwind and 100 to 300 basis points of possible ROE erosion.
The banking sector is facing a slow-moving crisis, but we aren’t sure it is enough to sink the overall health of the US consumer or economy. Credit will contract and lending standards will continue to rise. However, we do not see this problem escalating to the size and scale of previous banking crises.
Jamie Dimon, Chairman and CEO of JP Morgan Chase clearly sees the risks these FINTECH companies present. In his annual letter to shareholders, he stated that all incumbent banks should be “scared shitless” of these FINTECH rivals. Not only is his bank being attacked from multiple angles, but Apple just launched a cash management program with Goldman Sachs. On the first day of Apple’s savings program, it raised $400 million and eclipsed $1 billion in its first four days. Dimon specifically labeled Apple a bank the other day in an interview when he said, “It may not have insured deposits, but it’s a bank. If you move money, hold money, manage money, lend money — that’s a bank.”
You can also take a look at 10 Best Natural Gas Stocks to Buy Now and 10 Best Green Energy Penny Stocks to Buy Now
