Most profitable less than $5 stock in the world? (Oxford Club)
3 Stocks Analysts Love:
Always pay attention to stock upgrades.
While firms won’t always get it right, price upgrades are still worth paying attention to.
Perhaps they’re seeing favorable industry trends that are impacting a covered stock. Maybe the financial health of a stock based on earnings or guidance is improving. Or, perhaps, they liked what they heard in a meeting with management. Whatever the case, it’s a good idea to look into the reasoning for a price upgrade.
However, never use new stock price targets as your sole reason for buying.
For one, there’s no such thing as a perfect analyst. Two, do your due diligence with technical and fundamental analysis. After all, the last thing you want to do is buy into a stock that’s become excessively overbought. Third, look at how other firms rate the same stock. If a firm is bullish on a stock, but four others rate is as a sell, look into why.
Here’s what analysts like at the moment.
Shopify (SYM: SHOP)
Loop Capital just upgraded SHOP to a buy rating, noting, “We believe investors are underappreciating how Shopify is utilizing AI to not only better serve its merchants (most notably, under the Shopify Magic umbrella) but also internally (including in customer support, sales, human resources, and even accounting and finance),” as quoted by CNBC.
While that’s a great upgrade, investors may want to wait for SHOP to pull back before buying.
After gapping from about $80 to $119, SHOP has become technically stretched. Plus, it’s over-extended on RSI, MACD and Williams’ %R.
Amazon (SYM: AMZN)
Bank of America just reiterated a buy on AMZN heading into 2025. The firm noted that the ecommerce giant is its top pick for share gains, margin expansion and Cloud-AI exposure.
Plus, with holiday retail sales, analysts at Deloitte believe sales could total $1.58 trillion to $1.59 trillion for 2024, as compared to the $1.49 trillion for the 2023 holiday season. The firm also expects for e-commerce sales to grow between 7% and 9% year over year, coming in between $289 billion and $294 billion this season.
Dollar General (SYM: DG)
Bank of America also upgraded Dollar General to a buy rating.
“We upgrade DG to Buy from Underperform given multiple early signs of DG’s ‘Back-to-Basics’ Strategy working, including: 1) significantly improved inventory positioning (down 7% y/y per store), helping store & DC execution; 2) in-stock levels up a strong 180bp vs. LY [last year] (supporting sales upside),” as noted by CNBC.
After bottoming out at around $76.48, DG is slowly starting to pivot higher. Last trading at $83, we’d like to see it eventually refill its bearish gap at around $125.
