With 2021 now entering its last quarter, most companies have already shared their quarterly results.
Many firms witnessed massive revenues after economic recovery picked up their pace at the beginning of the year. After a better-than-expected summer and travel season, investors are now turning their heads towards the givings of fall.
Here are three stocks that Wall Street’s best-performing analysts see real potential in for the end of the year.
Though companies are slowly ushering a grand return to the physical workspace (some are even opting for a hybrid work model), some high-profile firms like Microsoft and Apple have delayed the return to the office. Wedbush Securities’ Daniel Ives’ analysis of Microsoft’s performance signifies the remote work trend persisting.
The company maintained strong momentum throughout the 2020 lockdown, as well as the beginning of 2021, deals from which will continue to feed revenue to the company till 2022. The five-star analyst states Microsoft’s hiked prices for Office-365 is predicted to generate upwards of $5 billion next year.
The last year and a half ushered changes aplenty, one of which was online shopping. Through the changes, Target has remained successful in capturing consumer movements and has been one of the biggest facilitators of this growing trend. From what past stats indicate, it will continue to do so.
Guggenheim’s Robert Drbul adopts and recommends adopting a bullish approach to the stock due to the consistent strength of the business, its profitability, and cash flow generation. Earlier this year, the stock beat WallStreet consensus estimates in its second quarter by a whopping 7% increase per share. The five-star analyst predicts continuous growth both in-store and digitally.
2. Applied Materials
The pandemic-forced lockdown of semiconductor factories, coupled with an increasing demand for automobiles, computers, and smartphones, created grounds for the perfect storm. This shortage has continued to pressurize automotive and technology manufacturers throughout the second quarter.
For Applied Materials, which is expected to see big revenue gains in 2022, this increased demand is good. Due to a structurally favorable WFE (water fav equipment) mix next year, Needham & Co.’s Quinn Bolton predicts the stock outperforming its peers in 2022.
Wrapping It Up
Investors are currently shifting their attention towards companies that can offer them massive revenues. As such, WallStreet’s top analysts are keeping themselves positioned to gain key market insight and capture shifting market trends. Use these experts’ advice to the fullest to reap maximum rewards this fall season.