Analysts Just Turned Bullish on These 10 Stocks

Published June 28, 2022 at 2:25 pm EDT Updated September 7, 2026 at 2:17 pm EDT

In this article, we will take a look at the 10 stocks that recently received upgrades from analysts.

Analysts recently improved their ratings for notable consumer cyclical stocks, including AutoZone, Inc. (NYSE:AZO), Chewy, Inc. (NYSE:CHWY) and Chipotle Mexican Grill, Inc. (NYSE:CMG).

In addition, North Carolina-based less-than-truckload carrier Old Dominion Freight Line, Inc. (NASDAQ:ODFL) and Australian software firm Atlassian Corporation Plc (NASDAQ:TEAM) also received upgrades from research firms.

Photo by Chris Liverani on Unsplash

We will review the details of these upgrades in the remaining article.

10. National Vision Holdings, Inc. (NASDAQ:EYE)

Number of Hedge Fund Holders: 15

Shares of National Vision Holdings, Inc. (NASDAQ:EYE) rose over two percent on Monday, June 27, 2022, after Goldman Sachs upgraded the optical retailer from “Neutral” to “Buy,” citing improving demand trends for the second half of the year. The research firm also increased its price target for National Vision Holdings, Inc. from $31 per share to $32 per share.

Goldman Sachs analyst Kate McShane called the near-term demand challenges temporary. She thinks the approaching back-to-school period will likely act as a growth catalyst for National Vision Holdings, Inc..

9. The Simply Good Foods Company (NASDAQ:SMPL)

Number of Hedge Fund Holders: 17

Shares of The Simply Good Foods Company (NASDAQ:SMPL) jumped to a nearly two-month high on Monday, June 27, 2022, after receiving an upgrade from Stephens & Co. The research firm upgraded the consumer-packaged food company from “Equal Weight” to “Overweight,” stating that The Simply Good Foods Company is capitalizing on increased snacking occasions.

Stephens analyst Ben Bienvenu believes that Simply Good Foods shares provide a lucrative investment opportunity for investors seeking stable growth in uncertain market conditions. Bienvenu also raised his price target for The Simply Good Foods Company from $44 per share to $45 per share.

Earlier this year, investment management firm Carillon Tower Advisers also mentioned The Simply Good Foods Company in its fourth-quarter 2021 investors letter. The firm said:

“Simply Good Foods develops and sells nutritional food and snacks, positioning it to take advantage of the secular trend towards healthy snacking. The stock outperformed when the company reported quarterly results in excess of expectations and also provided strong forward fiscal year guidance. The firm is seeing an improvement in sales as consumer mobility gradually returns to more normalized levels, and it benefits from going up against easy comparisons from last year when mobility was hampered by the pandemic.”

8. Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)

Number of Hedge Fund Holders: 18

Goldman Sachs improved its ratings for Ollie’s Bargain Outlet Holdings, Inc. from “Sell” to “Neutral” on Monday, June 27, 2022, and lifted its price target for the discount closeout retailer from $37 per share to $57 per share.

Goldman Sachs analyst Kate McShane expects Ollie’s Bargain Outlet Holdings, Inc. to take advantage of increased closeout opportunities, particularly during the second half of the year.

Like Ollie’s Bargain Outlet Holdings, Inc., analysts also recently turned bullish on AutoZone, Inc., Chewy, Inc. and Atlassian Corporation Plc.

7. Vermilion Energy Inc. (NYSE:VET)

Number of Hedge Fund Holders: 18

Shares of Vermilion Energy Inc. (NYSE:VET) jumped nearly 12 percent on Monday, June 27, 2022, after Scotiabank upgraded the Canadian oil and gas producer from “Sector Perform” to “Outperform.”

Scotiabank analyst Jason Bouvier referred to the company’s exposure to European gas prices, which have increased sharply following the conflict between Russia and Ukraine. Bouvier said that Vermilion Energy Inc. generates more than 40 percent of its cash flow from European gas operations.

Since the European gas prices have surged by nearly 50 percent following the Russia-Ukraine conflict, the relative valuation of Vermilion Energy Inc. has also increased accordingly, Bouvier added.

6. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 19

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) climbed 14 percent on Monday, June 27, 2022, after Goldman Sachs raised its ratings for the financial services company from “Sell” to “Neutral.”

Goldman Sachs analyst Will Nance thinks that higher interest rates would likely boost the net interest income of Robinhood Markets, Inc. in the coming quarters. While Nance predicted a 19 percent rise in Robinhood shares over 12 months, he expects the stock to stay range-bound for now.

Separately, investment management firm Claret Asset Management talked about Robinhood Markets, Inc. in its fourth-quarter 2021 investor letter published in January. Here’s what the firm said:

“Robinhood went public at $38 a share at the end of July of this year. After a oneday decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”

5. Chewy, Inc. (NYSE:CHWY)

Number of Hedge Fund Holders: 21

Needham upgraded Chewy, Inc. from “Hold” to “Buy” and issued a price target of $55 per share for the pet food retailer on Monday, June 27, 2022. The research firm referred to the better-than-expected financial performance of Chewy, Inc. in its fiscal first quarter.

Needham analyst Anna Andreeva referred to the inelastic demand for Chewy products, besides price hikes and easing of supply-chain issues. The demand for pet food usually remains stable as people have to buy food for their pets even if the economic conditions are unstable.

4. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 38

AutoZone, Inc. received an upgrade from Goldman Sachs on Monday, June 27, 2022. The research firm raised its ratings for the aftermarket automotive parts retailer from “Neutral” to “Buy,” citing non-discretionary sales of the company.

Goldman Sachs analyst Kate McShane believes that inelastic demand for AutoZone products would help the company steer through the ongoing inflationary environment. McShane also lifted her price target for AutoZone, Inc. from $1,969 per share to $2,296 per share.

Earlier this year, investment management firm Weitz Investment Management mentioned AutoZone, Inc. in its fourth-quarter 2021 investor letter. The firm said:

“The Fund’s investments in auto-related businesses were consistent top performers in 2021. Shortages of new vehicles have driven buyers into the used car market. AutoZone has won new customers who need to maintain vehicles they now plan to own longer (and federal stimulus checks have given car owners some extra cash to spend on car maintenance).”

3. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Number of Hedge Fund Holders: 38

OTR Global improved its ratings for Chipotle Mexican Grill, Inc. from “Mixed” to “Positive” on Monday, June 27, 2022. The research firm referred to marginal improvement in the second-quarter trends over the comparable period of 2021.

Chipotle Mexican Grill, Inc. surpassed profit and sales expectations for the first quarter of 2022. The fast-casual restaurant operator reported adjusted earnings of $5.70 per share, topping estimates of $5.64 per share. The quarterly revenue of $2.02 billion also exceeded the consensus of $2.01 billion.

Separately, investment management firm Ensemble Capital talked about Chipotle Mexican Grill, Inc. in its first-quarter 2022 investor letter. The firm said:

“Chipotle (6.0% weight in the Fund): In a recent blog post called GREAT COMPANIES ARE FORGED DURING CRISIS we discussed why companies with economic moats, relevant products and services, and those that create stakeholder value are more resilient in the face of crisis than the average company. Less advantaged competitors, in turn, struggle, which creates opportunities for great companies to get even better.

We think Chipotle navigated the COVID environment better than any major quick-serve restaurant and has consequently gone from strength to strength. Indeed, from March 1, 2020 to March 31, 2022, Chipotle shares gained 106% versus the S&P 500 Restaurants Index’s 28% return, including dividends.

To be sure, going into 2020, Chipotle had some recent experience in managing through a crisis. Its self-inflicted foodborne illness crisis that occurred in 2015 and 2016 threatened to permanently impair Chipotle’s brand value and damage customer trust. While the company made some changes at the top, bringing in Brian Niccol as CEO, and reorganized its food preparation processes, it did not abandon its mission of providing customers with freshly-prepared, sustainably-sourced food. Even at the nadir of its crisis, the average revenue of a Chipotle restaurant remained in line with the average fast casual restaurant in the US.”

2. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)

Number of Hedge Fund Holders: 41

Old Dominion Freight Line, Inc. received an upgrade from Wells Fargo on Monday, June 27, 2022. The research firm upgraded the less-than-truckload (LTL) carrier from “Equal Weight” to “Overweight,” citing growth opportunities for the company within the market.

Wells Fargo analyst Allison Poliniak-Cusic said that Old Dominion Freight Line, Inc. is boosting its presence in the LTL market. He also thinks that the company’s profitability will continue to improve. Poliniak-Cusic raised his price target for Old Dominion Freight Line, Inc. from $280 per share to $300 per share.

Investment management firm ClearBridge Investments mentioned Old Dominion Freight Line, Inc. in its first-quarter 2021 investor letter published earlier this year. ClearBridge stated:

“We exited our position in Old Dominion Freight Lines (NASDAQ:ODFL), in the industrial sector. While our opinion of the freight carrier’s business quality is unchanged, we believe the stock’s current price reflects less potential than some of the new opportunities we have been evaluating.”

1. Atlassian Corporation Plc (NASDAQ:TEAM)

Number of Hedge Fund Holders: 65

Goldman Sachs upgraded Atlassian Corporation Plc from “Neutral” to “Buy” on Monday, June 27, 2022. The research firm thinks that Atlassian is ready to benefit from the rising demand for its DevOp solutions.

Goldman Sachs analyst Kash Rangan thinks that Atlassian Corporation Plc has reached a critical point in its cloud transition. Rangan also raised his price target for Atlassian Corporation Plc from $279 per share to $300 per share.

Earlier this year, investment management firm ClearBridge Investments mentioned Atlassian Corporation Plc in its first-quarter 2021 investor letter, stating:

“The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out. We also trimmed back workflow software maker Atlassian after a strong runup in its shares in 2021. Most of our reductions in emerging growth have involved IT or related companies where innovation is a key to their business model. That said, we remain positive on the IT sector and have largely maintained holdings in our highest-conviction ideas.”

You can also take a peek at 10 Best Recession Stocks to Buy According to Wells Fargo and 6 Defensive Stocks to Buy in 2022 According to Seth Klarman.

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