The Internet of Things (IoT) is hardly new to most technology investors. But one thing is for sure, it may be the most explosive growth driver in the history of the semiconductor space. In fact, in a new research report, Merrill Lynch feels that technology is so big going forward that low-power IoT chips could be in almost 1 trillion devices over the next 20 years.

The Merrill Lynch team also notes in the report the keys to success for the IoT chips is the ability for processing, sensing, connectivity know-how, and most importantly, the ability to generate profits in a high volume, quick turnover marketplace. With the potential for chip sales to double to $34 billion by 2020, companies with direct exposure are sitting pretty.

The analysts point to five stocks rated Buy at Merrill Lynch as long-term beneficiaries of the massive IoT trends: two large cap old-school leaders and three other smaller players that more aggressive accounts may like.

Intel

This leader in semiconductors is working hard to scale away from dependence on personal computers, and the IoT is a big part of the shift. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide. The company’s platforms are used in various computing applications comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.

Earlier this year the company announced the purchase of Mobileye for $15.3 billion. The Israel sensor company gives the chip giant a leg up in the autonomous car competition, and it also adds many other capabilities. While some say the valuation paid is high, this is a big IoT segment going forward.

Intel investors are paid a solid 2.96% dividend. The Merrill Lynch price target for the stock is $42, while the Wall Street consensus target is $39.97. The stock closed Tuesday at $36.87 per share.

Texas Instruments

This company that has come back into favor big-time, and it was also a top first-quarter pick. Texas Instruments Inc. (NASDAQ: TXN) is a broad-based supplier of semiconductor components, ranging from digital signal processors to high-performance analog components to digital light-processing technology and calculators. Some 65% of Texas Instruments sales are exposed to the well-diversified, business-to-business industrial, automotive, communications infrastructure and enterprise markets.

In the most recent quarter, the company consensus estimates on both the top and bottom lines. Reported revenues for the first quarter of 2017 were up 13.1% year over year, due in part to greater demand in its automotive and industrial sectors.

Texas Instruments also increased its quarterly dividend earlier this year by 32% to $0.50 per share, or $2.00 annualized. The increase reflects its continued strength in free cash flow generation and its commitment to return excess cash to shareholders.

Investors in Texas Instrument are paid a solid 2.43% dividend. Merrill Lynch has a $92 price target for the stock, while the consensus price objective is lower at $82.11. The shares closed higher than that on Tuesday, at $82.36.

24/7 Wall St.
Massive DRAM and 3D NAND Demand Drives 4 Top Tech Stocks

Over the course of this week, markets have largely been driven higher as the result of some amazing earnings. Roughly one-third of the Dow reported this week, and the index has reached over 21,000 again for the first time since early March.

However, the week is not over yet, and we still have some powerhouse companies that are looking to report their most recent quarterly results.

We have included the consensus earnings estimates from Thomson Reuters, as well as the stock price and trading history for these companies ahead of the report.

Alphabet Inc. (NASDAQ: GOOGL) will share its latest quarterly earnings after the closing bell. The consensus estimates call for $7.40 in earnings per share (EPS) and $24.29 billion in revenue. Shares were last seen at $871.09, in a 52-week trading range of $663.28 to $876.05. The stock has a consensus analyst target of $951.18.

Amazon Inc. (NASDAQ: AMZN) first-quarter results also are scheduled for late in the day. The consensus earnings estimate is $1.13 per share, on $35.31 billion in revenue. The shares traded at $909.63 on Wednesday. The consensus price target is $39.97, and the 52-week range is $29.50 to $38.45.

Intel Corp. (NASDAQ: INTC) is set to release its most recent quarterly results in the afternoon as well. The consensus forecast calls for $0.65 in EPS and $14.81 billion in revenue. Shares were trading at $36.97. The Wall Street price target is $15.11, and the 52-week range is $5.45 to $11.63.

Microsoft Corp. (NASDAQ: MSFT) is expected to report its most recent quarterly results later on Thursday. The consensus forecast is for $0.70 in EPS and $23.62 billion in revenue. Shares were trading at $68.25, in a 52-week range of $48.04 to $68.21. The consensus price target is $69.55.

Skyworks Solutions Inc.’s (NASDAQ: SWKS) first-quarter results are scheduled for the morning. The consensus estimate is $1.40 in EPS, on $840.39 million in revenue. The shares were last seen at $103.16. The consensus price target is $102.46, and the 52-week trading range is $57.11 to $105.34.

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When Skyworks Solutions Inc. (NASDAQ: SWKS) reported its fiscal second-quarter financial results after the markets closed on Thursday, the company said it had $1.45 in earnings per share (EPS) and $851.7 million in revenue. The consensus estimates had called for $1.40 in EPS and revenue of $840.39. The same period of last year reportedly had EPS of $1.25 and $775.1 million in revenue.

In terms of guidance for the coming quarter, the company expects EPS of $1.52 and revenue of $890 million. The consensus estimates are $1.50 per share and $868.39 million.

The board of directors also announced a cash dividend of $0.28 per share of the common stock, which is payable on June 6 to stockholders of record at the close of business on May 16.

On the books, Skyworks cash and cash equivalents totaled $1.41 billion at the end of the quarter, up from $1.08 billion in the same period of last year.

Liam K. Griffin, president and CEO of Skyworks, commented:

Skyworks exceeded financial expectations in the second fiscal quarter of 2017 driven by insatiable demand for high-speed, reliable, always-on connectivity spanning Mobile and Internet of Things ecosystems. We are capitalizing on these powerful macrotrends, pushing the technology envelope and extending our product reach to enable the world’s most exciting communications platforms. At a higher level, we are well positioned to create shareholder value while executing on our ambitious vision of connecting everyone and everything, all the time.

Shares of Skyworks were last seen down 3.5% at $100.50 on Friday, with a consensus analyst price target of $102.46 and a 52-week trading range of $57.11 to $105.34.

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If there is one segment that continues to get dog-piled by bearish analysts and strategists it’s the semiconductors, and the concern is not without some merit. The PHLX Semiconductor Sector Index (SOX) is up 10.9% since the beginning of the year and a stunning 54% since May of 2016. Anyway you cut it, that is a huge move, and the kind of parabolic lift that gets the bears revved up and the negativity flowing.

In a new research report, while Merrill Lynch acknowledges the nosebleed levels at which stocks are trading, the firm makes the case that the semiconductor vendors themselves are very positive about demand, pricing, cost and capacity, which are always the four major areas of concern in what is a highly cyclical arena.

With the Internet of Things still in its beginning stages, the analysts feel that the semiconductors can continue to benefit from the commoditization of traditional hardware. Plus the stocks are growing up to twice as fast and are 50% more profitable than diversified industrial stocks, while trading at a 30% discount.

These five large cap leaders are rated Buy at Merrill Lynch.

Broadcom

This stock has been on fire over the past year and remains a top pick on the Merrill Lynch US 1 list. Broadcom Ltd. (NASDAQ: AVGO) has an extensive semiconductor product portfolio that addresses applications within the wired infrastructure, wireless communications, enterprise storage and industrial end markets. Applications for Broadcom’s products in these end markets include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems and displays.

Top Wall Street analysts like the leadership in the mobile, data center and broadband markets, and especially in the radio frequency (RF) arena. Many on Wall Street see a cyclical rebound in industrial and communications demand. Broadcom will report its most recent quarterly results at the end of this month.

Broadcom investors receive a 1.3% dividend. The Merrill Lynch price target for the stock is $260, and the Wall Street consensus target is $249.06. Shares closed Monday at $220.53.

Texas Instruments

This old-school chip tech company has come back into favor big-time. Texas Instruments Inc. (NASDAQ: TXN) is a broad-based supplier of semiconductor components, ranging from digital signal processors to high-performance analog components to digital light-processing technology and calculators. Some 65% of Texas Instruments sales are exposed to the well-diversified, business-to-business industrial, automotive, communications infrastructure and enterprise markets.

The company increased its quarterly dividend earlier this year by 32% to $0.50 per share, or $2.00 annualized. The increase reflects its continued strength in free cash flow generation and its commitment to return excess cash to shareholders.

The company reported outstanding earnings for the first quarter and the analysts noted in a recent report:

First quarter beat, and second quarter guidance guide ahead of estimates with broad-based strength across end markets and geographies. Unlike Maxim who signaled some softness in autos, Texas Instruments signaled strength across auto/industrial segments and geographies. Solid balance sheet provides flexibility for mergers and acquisitions or ramping buybacks; we see 15%+ upside to EPS from any US corporate tax reform.

Texas Instrument investors receive a 2.53% dividend. While Merrill Lynch has a $95 price target, the consensus price objective is lower at $85.33. The shares closed Monday at $79.18.

One area that has stayed on a roll for well over a year is the semiconductors, and with good reason. With application in everything from automobiles to industrial, to gaming and the Internet of Things, and so much more, than demand has been incredible. With valuations somewhat stretched, you would think many top portfolio managers may be lightening up on the shares. The fact is, in many cases, managers are underweight and may actually start buying.

In a new research report, Vivek Arya, the outstanding semiconductor analyst at Merrill Lynch, makes the case that while portfolio ownership of semiconductors remained even or declined month over month in April, there could be some opportunities for four top stocks, one of which is very under-owned by large cap portfolio managers.

Here are the four stocks rated Buy at Merrill Lynch that are under-owned and could be great additions to institutional portfolios.

Advanced Micro Devices

After years of frustrating performance, this company appears to have turned the corner and is a hot commodity on Wall Street, despite a recent earnings hiccup. Advanced Micro Devices Inc. (NYSE: AMD) is one of the largest suppliers of PC microprocessors and graphics processors worldwide to computing original equipment manufacturers. The company’s main product lines include desktop, notebook and graphics processors, and embedded/semi-custom chips.

The analyst feels that AMD, which is releasing the first major offering in five years, the Ryzen chipset, is in his words “uniquely positioned” to compete with the big players like Intel and NVIDIA in the $50 billion total addressable market for personal computers, gaming, artificial intelligence and servers.

Plus, AMD is held by just 1.3% of active managers, which is way below the historical 10% ownership level at a relatively equal weight position.

The Merrill Lynch price target for the stock is $16.60, and the Wall Street consensus target is set at $12.57. The stock closed Monday at $10.04 per share.

Microchip Technology

Microchip Technology Inc. (NASDAQ: MCHP) not only is a huge Internet of Things benefactor, but a leading provider of microcontroller, mixed-signal, analog and flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide.

The company offers microcontrollers, such as 8-bit, 16-bit and 32-bit microcontrollers under the PIC brand name and 16-bit dsPIC digital signal controllers, as well as provides microcontrollers for automotive networking, computing, lighting, power supplies, wireless communication and wireless audio applications.

Microchip Technology is only owned by 7% of active managers, which is well below the 2011 peak of 12%.

MicroChip investors are paid a very solid 1.91% dividend. Merrill Lynch has an $85 price target for the stock, and the consensus price objective is $85.12. The stock closed Monday at $75.46 a share.

If you only listened to the media chasing the biggest names and companies, you might think that tech giants like Amazon.com Inc. (NASDAQ: AMZN), Facebook Inc. (NASDAQ: FB), Alphabet Inc. (NASDAQ: GOOGL) and NVIDIA Corp. (NASDAQ: NVDA) were the best performing stocks of 2017, with an average gain of about 30%.

It is undeniable that these industry leaders have had impressive moves this year. Still, a fresh performance review of major technology stocks in the S&P 500 Index actually brought up many other stocks that generally have large-cap valuations and are up as much or more than the most frequently covered leaders so far in 2017.

Now that summer is kicking off, 24/7 Wall St. wanted to review some of these top S&P tech sector stocks so far in 2017. Some of these stocks are still not quite at all-time highs, but most of the top-performing stocks are now quite close to those highs.

As you will see, and something that has been the case even during most of their recent gains, most of these companies are trading above or close to their consensus analyst price targets. With summertime setting in, should investors look for even more gains or should they consider taking some money off the table after such major gains

For a comparison, here is how much each of the major tech stock gainers getting all the media attention are up so far this year, as of May 31, 2017:

• NVIDIA, up 35.0%
• Amazon, up 32.6%
• Facebook, up 31.6%
• Alphabet, up 24.5%

Performance tracking was screened on FINVIZ for tech stocks in the S&P 500 Index, price and range data was from Yahoo Finance, and relative consensus analyst price targets were from Thomson Reuters.

Here are the top pure technology stocks in the S&P 500 Index with the most impressive gains in 2017 at the end of May.

Adobe Systems Inc. (NASDAQ: ADBE) is up almost 38% so far in 2017, and its recent price of $141.86 is less than $2 shy of its recent all-time high of $143.48. Adobe is up less than 2% over the past week, up about 5% in the past month, up over 17% in the past quarter and up over 42% from a year ago.

Adobe has a consensus analyst price target of $145.07 and a 52-week trading range of $90.35 to $143.48. The company has a total market cap of $70 billion.

Applied Materials Inc. (NASDAQ: AMAT) was last seen up 42% so far in 2017. At $45.88, its shares are almost back to the peak levels from its chart during the 1999 and 2000 technology bubble. Applied Materials has a gain of 2% in the past week, is up 10% in the past month, and is up 24% in the past quarter. Its gain is actually 88% from this time a year ago.

Applied Materials, the leader in semiconductor capital spending, has a market cap nearing $50 billion, and it has a 52-week range of $22.17 to $46.05. Its consensus target price is $49.98.

The futures are trading mixed this morning as we end what has been a very roller-coaster week for investors. Technology still feels wobbly after some serious selling, and the Federal Reserve raised interest rates for what could be the last time until December. With this bull market now more than eight years old, investors have shown for more than the past five years that they will buy all market pullbacks. Those same investors also still are looking for new trading and investing ideas.

24/7 Wall St. reviews dozens of analyst research reports each morning to find new trading and investing ideas for its readers. Some analyst calls cover stocks to buy, while others cover stocks to sell or avoid.

These are this Friday’s top analyst upgrades, downgrades and initiations.

Axcelis Technology Inc. (NASDAQ: ACLS) saw it price target raised to $27 from $23 at Wedbush, based on increased confidence in firm’s second half of 2017 outlook. The consensus price target for the company on Wall Street is $24. The stock has a 52-week trading range of $9.68 to $26.53. The shares closed Thursday at $22.70.

Booz Allen Hamilton Inc. (NYSE: BAH) was downgraded to Hold from Buy at Drexel Hamilton. Its 52-week trading range is $27.47 to $39.67, and the consensus price objective is $41.73. The shares closed Thursday at $39.33

Celgene Corp. (NASDAQ: CELG) was raised to Outperform from Market Perform at Leerink Partners. The 52-week range for the biotech giant is $94.42 to $127.64. The consensus price target is $141.88, and the stock closed trading Thursday at $120.61.

Integrated Devices Technology Inc. (NASDAQ: IDTI) saw its target price raised to $32 from $28 at Needham, following positive meetings with company management. That compares with a consensus price target of $28.69. The 52-week range is $18.49 to $26.66, and the stock closed trading on Thursday at $24.41.

Kroger Inc. (NYSE: KR) was downgraded to Neutral from Overweight at JPMorgan. The grocery giant was also removed from the Best Ideas List at Guggenheim. The 52-week range for the stock is $24.37 to $37.97, and the consensus price objective is $32.50. The shares closed Thursday right near the 52-week low at $24.56, which was down a stunning 19%.

Nike Inc. (NYSE: NKE) was downgraded to Neutral from Overweight at JPMorgan. The 52-week range for the clothing and footwear giant is $49.01 to $60.33, and the consensus price target is posted at $62.24. The shares closed most recently at $52.90, down over 3%.

Noble Energy Inc. (NYSE: NBL) was downgraded to Neutral from Buy at Citigroup. The 52-week range is $3.68 to $9.68, and the consensus price target is $6.24. The shares closed Thursday at $3.82.

Performance Food Group Co. (NYSE: PFGC) was added to the Best Ideas List at Guggenheim, very possibly replacing Kroger. The 52-week range for the stock is $19.95 to $29.92, and the consensus price target is $30.10. The shares closed Thursday at $27.90.

Skyworks Solutions Inc. (NASDAQ: SWKS) was resumed with an Outperform rating at Raymond James, and with a $120 price target. That compares with the consensus price objective of $111.08. The 52-week range is $$57.11 to $112.11. The stock closed trading Thursday at $102.28.

Stanley Black & Decker Inc. (NYSE: SWK) was started with a Buy rating at Seaport Global Securities with a $160 price target. The consensus target is $150.31. The 52-week range for the stock is $103.86 to $142.06, and the shares closed trading Thursday at $140.96.

Western Digital Corp. (NASDAQ: WDC) was started with an Outperform rating and a $130 price target at Evercore ISI. That compares with a consensus price target of $111.77. The 52-week range for the hard disk drive giant is $41.64 to $92.50. The shares closed Thursday at $87.31.

Other key analysts upgrades and downgrades were seen in the following:

Skyworks Solutions, Inc. (NASDAQ: SWKS) reported its fiscal third-quarter financial results after the markets closed on Thursday and the results topped estimates. The company also announced it was raising its dividend.

The Irvine, California-based maker of analog semiconductors said it had $1.57 in earnings per share (EPS) and $900.8 million in revenue for the period ending June 30, compared with consensus estimates that called for $1.51 in EPS and $890.1 million in revenue. The same period from last year had $1.24 in EPS and $751.7 million in revenue.

The board of directors declared a cash dividend of 32 cents per share representing a 14% increase from the prior quarterly dividend of 28 cents a share. The dividend is payable on Aug. 29 to stockholders of record at the close of business on Aug. 8.

In terms of guidance for the fiscal fourth-quarter, the company expects to see $1.75 in EPS and revenue growth of 17% from last year or $977.4 million. The consensus estimates are calling for $1.73 in EPS and $974.12 million in revenue.

On the books, cash and cash equivalents totaled $1.44 billion at the end of the quarter, compared with $1.08 billion in the same period last year.

Liam K. Griffin, president and chief executive officer of Skyworks, commented:

“Skyworks exceeded top and bottom line expectations in the third fiscal quarter of 2017. Our outperformance is being driven by global demand for Skyworks’ highly integrated and ultra-efficient connectivity engines. As system-level complexity and performance requirements intensify across mobile and Internet of Things ecosystems, we are extending our product reach and capturing more content per platform. Further, we are well positioned to capitalize on the rapidly approaching 5G technology wave – enabling new markets from autonomous vehicles to emerging segments in artificial intelligence, robotics and virtual reality.”

Shares of Skyworks were last trading down 0.43% at $107.17, with a consensus analyst price target of $111.12 and a 52-week range of $62.40 to $112.11.

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If any stock is the stock market bellwether, it’s technology giant Apple Inc. (NASDAQ: AAPL), and with good reason. Not only is the Apple universe a magnet for consumer dollars in multiple silos, the smartphone pioneer continues to break new ground, and the Apple nation breathlessly waits for each new iteration of the now 10-year-old iPhone line. With the company posting outstanding second-quarter results and offering guidance above Wall Street estimates, the company appears to be hitting on all cylinders.

A new Oppenheimer research report makes the case that investors quickly will focus on Apple vendors, with the forward expectations positive and above forecast. The research report noted this:

We expect the Apple supply chain to react positively, as Apple’s guidance likely implies limited impact from any possible launch/production delays. Within the Apple supply chain, we continue to prefer content increase stories helping insulate from any demand softness versus (lofty) expectations. We conservatively take an agnostic view of end unit demand.

Four of the top Apple vendors are rated Outperform at Oppenheimer.

Analog Devices

This stock spiked recently and has come back into a good buy range. Analog Devices Inc. (NASDAQ: ADI) is a leader in the design, manufacture and marketing of analog, mixed-signal and digital signal processing integrated circuits for use in industrial, automotive, consumer and communication markets worldwide. It offers signal processing products that convert, condition and process real-world phenomena, such as temperature, pressure, sound, light, speed and motion, into electrical signals.

The company recently introduced a highly integrated polyphase analog front end with power quality analysis designed to help extend the health and life of industrial equipment while saving developers significant time and cost over custom solutions. Achieving extremely accurate, high-performance power quality monitoring typically requires customized development, which can be expensive and time-consuming.

The analysts believe that the Linear Technology acquisition, which closed recently, is a big positive as it helped raise the level of business done with Apple to 5%. Oppenheimer thinks that the company grew content in the iPhone 7 30% year over year, which bodes well for the iPhone 8 business.

Analog Devices investors receive a 2.28% dividend. The Wall Street consensus price target is $94.10. The stock closed Wednesday at $78.82.

Broadcom

This stock has been on fire over the past year and not only remains a top pick across Wall Street but derives 20% of its business from Apple. Broadcom Ltd. (NASDAQ: AVGO) has an extensive semiconductor product portfolio that addresses applications within the wired infrastructure, wireless communications, enterprise storage and industrial end markets.

Applications for Broadcom’s products in its end markets include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems and displays.

Top Wall Street analysts like the leadership in the mobile, data center and broadband markets, and especially in the radio frequency (RF) arena. Many on Wall Street see a cyclical rebound in industrial and communications demand.

The analysts note that the stock is underowned compared to peers, and the 40% iPhone content growth, combined with the closure of the Brocade purchase, which they feel is accretive, are very positive catalysts. They also feel dividend growth is possible.

Broadcom investors receive a 1.65% dividend. The consensus price target is $273.81, and shares closed Wednesday at $253.36.

24/7 Wall St.
Why Analysts Are Growing More Bullish on 3 Dow Stocks That Aren’t Apple

Skyworks Solutions

This stock has been on a roll since last summer. Skyworks Solutions Inc. (NASDAQ: SWKS) designs, develops, manufactures and markets proprietary semiconductor products, including intellectual property worldwide.

The product portfolio includes amplifiers, attenuators, battery chargers, circulators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase shifters, phase locked loops, power dividers/combiners, receivers, switches, synthesizers, technical ceramics, VCOS/synthesizers and voltage regulators.

The company does a stunning 40% of sales with Apple, which in this case is a positive for shareholders with the guidance for the quarter. The analyst’s report noted:

Skyworks Solutions has traditionally been a primary supplier of RF and analog in the iPhone/iPad. The company’s content has consistently increased ~20% in each of the last three iPhone refreshes, by our checks. We expect 15%+ content increase in the upcoming iPhone 8.

Investors receive a 1.23% dividend. The consensus price objective is $112.92. Shares closed Wednesday at $104.43.

Texas Instruments

This old-school chip tech company has come back into favor big-time. Texas Instruments Inc. (NASDAQ: TXN) is a broad-based supplier of semiconductor components, ranging from digital signal processors to high-performance analog components to digital light-processing technology and calculators. Some 65% of Texas Instruments sales are exposed to the well-diversified, business-to-business industrial, automotive, communications infrastructure and enterprise markets.

The company increased its quarterly dividend earlier this year by 32% to $0.50 per share, or $2.00 annualized. The increase reflects its continued strength in free cash flow generation and its commitment to return excess cash to shareholders.

Oppenheimer noted that Apple is 10% of sales for the semiconductor giant, and the company provides literally hundreds of SKUs across Apple’s entire product line. The analysts also estimate that the company has a 7% sales exposure to the iPhone.

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These four top companies are all big suppliers to Apple in the iPhone space and in other areas of the company’s burgeoning product line. With the iPhone 7s and 7s+ expected to be released in September and the iPhone 8 in October, there should be continued interest in these stocks.

It is no secret that there is an ongoing, raging bull market taking place, and not just in 2017. The business climate is getting back to having the best pro-business feeling in years. Including dividends for total return calculations, the Dow Jones Industrial Average is up over 23% and the S&P 500 is up over 18% so far in 2017. The Nasdaq 100 is up even more with a gain of about 30.5%, and that is even after some of its top technology constituents have seen handy pullbacks. As 2017 is coming to a close, investors are wondering how they should be making their investment stance for 2018 and beyond.

Most Wall Street strategists are calling for continued but more muted gains in the S&P 500 in 2018. Some are even projecting a gain of 10% or more including dividends. With tech stocks outperforming the broad market, the two most beloved tech stocks are Apple Inc. (NASDAQ: AAPL) and Amazon.com Inc. (NASDAQ: AMZN). But what about the rest of the market? There are 29 other Dow stocks outside of Apple, and when you consider Apple and Amazon together there are 98 other Nasdaq 100 stocks and 498 other S&P 500 stocks that investors can consider. Surely some of those other companies, even in technology, could have a real shot of outperforming Apple and Amazon in 2018.

24/7 Wall St. has screened through the universe of large cap technology stocks to see if there are other stocks that are expected to outperform Apple and Amazon over the next 12 months. Survey says: There are some tech stocks that are candidates to outperform Apple and Amazon! We must warn that analysts on Wall Street tend to keep rolling a 12-month price target on a stock rather than a year-end price target, so the formal view of December 11 may look different from what is expected to be seen in January.

Many analysts and traders alike go into hibernation mode in the final 10 to 15 days of December. With 2017 having been so strong, they are unlikely to try to push the envelope and take big risks ahead of the end of the year. Analysts on Wall Street frequently “refresh” their price targets higher or lower after the first days of each new year. That means this list of potential large-cap tech outperformers could be marginally different or quite different if various scenarios come into play in the next 20 days to 30 days.

Looking at analyst targets from Thomson Reuters and using certain other valuation metrics, 24/7 Wall St. has identified 10 large cap technology stocks that could outperform Apple and Amazon in 2018. What makes 2018 so challenging for an outlook is that the technology sector performed incredibly well in 2017, with Apple up 46% and Amazon up 55% so far in 2017. Many of these companies that could outperform in 2018 also had strong gains in 2017.

Analysts have a consensus upside for Apple of about 12.3%, if you include its dividend, calling for its shares to rise to $187.75. And Apple has a market cap of $875 billion, meaning that if things get any better for Apple (and if it doesn’t buy back too much stock) it could become the first $1 trillion value. Amazon has a $560 billion market cap now, and the consensus analyst price target of about $1,258 would imply upside of about 8.3% ahead.

Some analysts of course have higher price targets and are calling for more upside on each, but the reality is that if you average these two out at about 10%, then the reality is that Apple and Amazon combined are expected to rise about 10% into late 2018 — just a tad more than the expected gain in the S&P 500. It is also important for investors to consider that analysts issuing new and reiterated Buy and Outperform ratings in Dow and S&P 500 stocks tend to shoot for upside of about 8% at this stage of the greatest bull market in a generation.

To qualify as a technology stock that should outperform in 2018, several characteristics had to be present. Obviously the consensus analyst ratings and price targets had to be positive. The market cap target was generally at or above $10 billion, and there had to be strong trading volume and interest by Wall Street. The companies also still had to be seeing earnings and revenue growth. Certain stocks have pulled back from their highs considerably, so we tried to screen out stocks that might see analysts significantly “right-size” their expectations to something that might be less upside than expected for Apple and Amazon.

24/7 Wall St.
2018 Outlook: How Exxon, GE, IBM, Merck and Disney Could Be the Top Dow Stocks

Here are 10 large cap and active technology stocks that are currently expected to rise more than Apple and Amazon over the coming 12 months.

AMD: Back to Profits, and Maybe M&A

Advanced Micro Devices Inc. (NASDAQ: AMD) shares have gained exponentially over the past two years, but it has also pulled back by one-third as the stock got ahead of itself above analyst targets. The years of 2018 and 2019 are expected to return to real earnings, with double-digit revenue growth. The consensus target price of $14.30 implies upside of more than 40% from the recent $10 share price, but Jefferies has kept its price target up at $19.

AMD’s stock got ahead of itself when it went over $15 in 2017, so considering the pullback and considering that many analysts will probably “right-size” their expectations, AMD could still rise more than 25% in 2018, even if some price targets come down, and it remains a name that comes up in conversations around potential chip M&A targets. A spotty operating history and its market cap of almost $10 billion might limit some of the scope and interest for some investors. Still, AMD is winning in graphics and artificial intelligence, it has a new partnership with Intel and it can even be considered a cryptocurrency mining winner.

AMD has a 52-week trading range of $9.42 to $15.65 and a market capitalization of $9.7 billion. Its shares were down 12.4% so far in 2017, since its pullback has been so strong.

When Skyworks Solutions Inc. (NASDAQ: SWKS) reported its fiscal first-quarter financial results late on Monday, the company said that it had $2.00 in earnings per share (EPS) and $1.05 billion in revenue. That compared with consensus estimates of $1.91 in EPS and revenue of $1.05 billion. In the same period of last year, it posted EPS of $1.61 and $914.3 million in revenue.

Looking ahead to the second quarter, the company expects to see revenue up in the range of 6% to 8% and EPS of roughly $1.60. The consensus estimates call for $1.64 in EPS and $940.7 million in revenue for the quarter.

The board of directors also announced that it had authorized the repurchase of $1 billion in stock between now and January 2020.

Separately, the board declared a cash dividend of $0.32 per share of the company’s common stock, payable on March 15, 2018, to stockholders of record at the close of business on February 22, 2018.

On the books, Skyworks cash and cash equivalents totaled $1.68 billion at the end of the quarter, up from $1.62 billion at the end of the previous fiscal year.

Liam K. Griffin, president and CEO of Skyworks, commented:

Skyworks exceeded $1 billion in quarterly revenue and achieved $2.00 per share in non-GAAP diluted EPS in Q1 FY18 driven by strong global demand for our wireless communications engines. As connectivity performance requirements intensify, Skyworks is leveraging our mixed signal expertise, scale and customer relationships to power the mobile economy and capitalize on several strategic growth catalysts. Our system solutions are enabling everything from industrial robotics to drones, autonomous vehicles, wireless infrastructure, home security systems and virtual assistants. Further, with the recent launch of our breakthrough Sky5 platform, Skyworks is well positioned to accelerate 5G deployments and, ultimately, to extend our competitive advantage.

Shares of Skyworks traded up about 9% at $103.36 on Tuesday, with a consensus analyst price target of $117.58 and a 52-week range of $90.53 to $117.65.

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Stocks were indicated marginally higher on Friday, but the direction of the day seems far from set in stone. The trend of endlessly buying the dips has not worked as well as it has in prior years. Now is a time when all investors should be considering how they want their investments positioned for the longer term.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new ideas for investors and traders alike. Some analyst reports cover stocks to buy and some cover stocks to sell or to avoid.

Additional color and commentary have been added on most of the daily analyst reports. The consensus analyst price targets mentioned and other valuation metrics are from the Thomson Reuters sell-side research service.

These were the top analyst upgrades, downgrades and other research calls from Friday, May 18, 2018.

Adverum Biotechnologies Inc. (NASDAQ: ADVM) was started as Overweight and assigned a $60 price target at Piper Jaffray. This is only a $373 million market cap stock, but it still represents right at 100% in implied upside from the $6.00 prior close (after a 2.4% drop), and the analyst’s target compares with a consensus target price of $10.00.

Aimmune Therapeutics Inc. (NASDAQ: AIMT) was started as Overweight and assigned a $60 price target at Piper Jaffray. That call actually represents almost 100% upside from the $30.01 close, compared to a consensus target price of $60. Aimmune has been volatile over the past year, as its 52-week trading range is $15.97 to $42.00.

Alpine Immune Sciences Inc. (NASDAQ: ALPN) was started as Outperform with a $13 target price (versus an $8.12 close) at Wedbush Securities. Alpine is seen as leveraging a directed evolution approach to create multi-functional protein-based therapeutics that it believes could potentially modulate the immune synapse more effectively than conventional immunotherapeutics for the treatment of cancer and autoimmune/inflammatory diseases.

Anadarko Petroleum Corp. (NYSE: APC) was started as Hold at SunTrust Robinson Humphrey.

Bemis Co. (NYSE: BMS) was started as Hold at Jefferies.

Berry Global Group Inc. (NYSE: BERY) was started as Buy and assigned a $67 price target (versus a $47.53 close) at Jefferies. The consensus target is $67.85, and the 52-week range is $47.30 to $61.71.

Brixmor Property Group Inc. (NYSE: BRX) was started with a Buy rating and assigned a $17.50 price target (versus a $14.26 close) at Goldman Sachs. The 52-week range is $13.74 to $20.59, and the consensus target price is $18.20.

Carrizo Oil & Gas Inc. (NASDAQ: CRZO) was downgraded to Hold from Buy with a $26 price target (versus a $27.33 close, after a 5% gain) at Jefferies. Carrizo has a 52-week range of $11.10 to $128.05 and a consensus target price of $26.18.

Coupa Software Inc. (NASDAQ: COUP) was downgraded to Equal Weight from Overweight with a $51 price target (versus a $51.48 close) at Barclays.

Companhia de Saneamento Basico (NYSE: SBS), or Sabesp, for water and waste management in Sao Paolo (Brazil), was downgraded to Neutral from Buy at Goldman Sachs.

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June 8, 2018: The S&P 500 closed up 0.3% at 2,778.75. The DJIA closed up 0.3% at 25,314.19. Separately, the Nasdaq was up 0.1% at 7,645.51.

Friday was a positive day for the broad U.S. markets, if only slightly. Crude oil inched lower to close out the week just below $66. The S&P 500 sectors were mostly positive. The most positive sectors were consumer staples and health care up 1.1% and 0.6%, respectively. The worst performing sectors were energy and utilities down 0.3% and 0.1%, respectively.

Crude oil was last seen trading down 0.5% at $65.65.

Gold was last seen trading flat at $1,303.00.

The S&P 500 stock posting the largest daily percentage loss ahead of the close was Skyworks Solutions, Inc. (NASDAQ: SWKS) which traded down over 2% at $99.79. The stock’s 52-week range is $86.13 to $117.65. Volume was over 2.5 million compared to the daily average volume of 2.1 million.

The stock posting the largest daily percentage gain in the S&P 500 ahead of the close was Monster Beverage Corp. (NASDAQ: MNST) which rose about 5% to $55.48. The stock’s 52-week range is $47.61 to $70.22. Volume was about 6 million compared to the daily average volume of 3.5 million.

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Wireless use in the United States and around the world is now pretty much ubiquitous, and it looks to stay that way for the foreseeable future. Plus, when you consider the devices that use wireless, the increase in capability and function since the release of the first smartphones just over 10 years has been tremendous and shall continue to stay that way one can only assume.

A new research report from Baird notes that the roll-out of 5G is well underway. 5G is the fifth generation of cellular mobile communications. It succeeds the 4G, 3G and 2G systems. 5G performance targets include high data rate, reduced latency, energy saving, cost reduction, higher system capacity and massive device connectivity. All are needed given today’s massive demand.

The analysts noted this in the report:

While the ramp of 5G is initially marked by the release of high band spectrum, core network upgrades will define true, zero-latency 5G. Some functionality will relocate from base stations to data centers. Field-programmable gate arrays are expected to benefit from real-time demand associated with C-RAN, sometimes referred to as Centralized-RAN, is a proposed architecture for future cellular networks on the network.

Three stocks rated Outperform at Baird are what they call 5G derivatives due to their exposure to potential business for the build-out. All are good picks for speculative accounts looking for alpha-generating ideas.

Analog Devices

This stock could very well benefit from an increase in information technology and 5G spending, and the company does a sizable portion of its business with Apple. Analog Devices Inc. (NASDAQ: ADI) is a leader in the design, manufacture and marketing of analog, mixed-signal and digital signal processing integrated circuits for use in industrial, automotive, consumer and communication markets worldwide. It offers signal processing products that convert, condition and process real-world phenomena, such as temperature, pressure, sound, light, speed and motion, into electrical signals.

Last year the company introduced a highly integrated polyphase analog front end with power quality analysis designed to help extend the health and life of industrial equipment while saving developers significant time and cost over custom solutions. Achieving extremely accurate, high-performance power quality monitoring typically requires customized development, which can be expensive and time-consuming.

Analog Devices investors are paid a 2.09% dividend. The Baird price target for the stock is $110, and the Wall Street consensus price target is $108.95. The shares closed Tuesday trading at $91.86.

Semtech

This is another chip company that the Baird team likes for a 5G infrastructure and small cell play. Semtech Corp. (NASDAQ: SMTC) is a supplier of analog and mixed-signal semiconductor products. It designs, develops and markets a range of products for commercial applications, which are sold into the enterprise computing, communications, consumer and industrial end markets.

The company’s product lines include Signal Integrity, Protection, Wireless and Sensing, and Power and High-Reliability. Applications for the industrial market include video broadcast studio equipment, automated meter reading, wireless charging, military and aerospace, medical, security systems, automotive, Internet of Things, industrial and home automation, and video security and surveillance.

Semtech also focuses on enterprise computing end-markets including desktops, notebooks, servers, graphic boards, printers, data center–related equipment and passive optical networks. Communications end-market applications include wireless base stations, carrier networks, switches and routers, cable modems, signal conditioners and wireless local area network.

Baird has a $56 price target, while the consensus target is $61.40. The shares closed Tuesday at $59.95.

24/7 Wall St.
Merrill Lynch Says Jump on These 5 Dow Jones Industrial Average Laggards

Skyworks Solutions

Baird analysts also favor this one as they see them as a smartphone content and infrastructure provider as well. Skyworks Solutions Inc. (NASDAQ: SWKS) is the market leader in power amplifiers, front-end modules and other radio frequency (RF) components for mobile devices (handsets, smartphones, tablets) and communications infrastructure.

The company’s RF products are benefitting from a two to four times content increase in front-end RF from the migration to data-intensive 3G/4G smartphones from voice intensive 2G phones. And it is expected to jump even more with 5G adoption. The company also has benefited from an increased exposure to Apple products, and most on Wall Street see the potential for further margin expansion.

The $125 Baird price target compares with a consensus target of $117.88 and the most recent close at $86.81 per share.

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While it remains to be seen exactly just how these companies are impacted by the 5G roll-out, one thing is for sure. They all have exciting prospects for the future and can be solid holdings for aggressive growth investors.

Stocks were indicated higher on Wednesday after a strong preliminary jobs report from ADP. While the U.S. indexes are effectively at all-time highs, many investors have seen lower upside from buying on market pullbacks than in prior years. Now the investing community has to consider how to position their investments for the rest of 2018 and 2019.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new ideas for investors and traders alike. Some analyst reports cover stocks to buy, but some cover stocks to sell or to avoid.

Additional commentary has been added on most of the daily analyst reports, along with trading history. The consensus analyst price targets and other valuation metrics are from the Thomson Reuters sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen on Wednesday, October 3, 2018.

Analog Devices Inc. (NASDAQ: ADI) was maintained as Overweight at Barclays, but the firm cut its price target to $108 from $110. The 52-week range is $80.95 to $103.59 and the consensus price target is $108.70.

BankUnited Inc. (NYSE: BKU) was maintained as Overweight at Barclays, but the firm lowered its price target to $45 from $49. The 52-week range is $32.34 to $44.97 and the consensus price target is $44.68.

Brookdale Senior Living Inc. (NYSE: BKD) was reiterated as Outperform and the price target was raised to $11 from $9 (versus a $9.35 prior close) at JMP Securities. The 52-week range is $6.28 to $11.09 and the consensus price target is $10.50.

Diamondback Energy Inc. (NASDAQ: FANG) was started with an Outperform rating and assigned a $166 price target (versus a $137.05 close) at Oppenheimer. The 52-week range is $97.81 to $138.49 and the consensus price target is $168.93.

Halliburton Co. (NYSE: HAL) was reiterated as Outperform and the price target was lowered to $55 from $58 (versus a $41.71 close) at Wells Fargo. Halliburton was indicated up 0.6% at $41.97 on Wednesday, and it had a consensus target price of $51.67.

Maxim Integrated Products Inc. (NASDAQ: MXIM) was maintained as Equal Weight and the price target was lowered to $59 from $60 at Morgan Stanley. The 52-week range is $47.94 to $74.94 and the consensus price target is $74.94.

Microchip Technology Inc. (NASDAQ: MCHP) was maintained as Equal Weight and the price target was lowered to $95 from $98 at Morgan Stanley. The 52-week range is $77.14 to $104.20 and the consensus price target is $113.73.

Neovasc Inc. (NASDAQ: NVCN) was reiterated as Outperform and the price target was raised to $3 from $2 at Leerink. Shares closed down 10.7% at $2.25 on Tuesday, but its shares were up 22% at $2.75 on Wednesday on news of positive follow-up data on patients implanted with a Neovasc Reducer.

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Stocks were indicated lower on Monday on additional trade concerns between China and the United States, even with OPEC expected to lower oil production. Investors have seen lower upside after buying immediately after the big market pullbacks than in prior years. The investing community needs to consider how to position their investments for the rest of the year and into 2019.

24/7 Wall St. reviews dozens of analyst research reports each day of the week in an effort to find new ideas for investors and traders alike. Some of these analyst reports cover stocks to buy, while others cover stocks to sell or to avoid.

Additional commentary has been added on most of the daily analyst reports, along with trading history. The consensus analyst price targets and other valuation metrics are from the Thomson Reuters sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen from Monday, November 12, 2018.

Achaogen Inc. (NASDAQ: AKAO) was downgraded to Neutral with a $3 target price (versus a $2.25 prior close) at Wedbush Securities, which noted that it is reviewing strategic alternatives with an additional restructuring in place. H.C. Wainwright also lowered its rating to Neutral and slashed its target to $3 from $19.

Altria Group Inc. (NYSE: MO) was down 3% at $63.42 on Friday and down another 4.9% at $60.30 on Monday on fears of a coming FDA ban on menthol cigarettes. Wells Fargo maintains an Outperform rating on the stock after the weakness.

Anheuser-Busch InBev S.A./N.V. (NYSE: BUD) was downgraded to Hold from Buy at Argus.

Apple Inc. (NASDAQ: AAPL) was maintained as Overweight at JPMorgan, but the firm lowed its target price to $266 from $270 and this was the second price target cut at the firm in the past 30 days as it expects modest declines in iPhone shipments this year and next.

Ardagh Group S.A. (NYSE: ARD) was downgraded to Neutral from Outperform at Credit Suisse, with the firm noting that there is a continued high leverage position here.

Athenahealth Inc. (NASDAQ: ATHN) is being acquired. KeyBanc Capital Markets maintained its Overweight rating but lowered its target price to $142 from $170. Robert W. Baird downgraded it to Neutral on the news.

Comerica Inc. (NYSE: CMA) was raised to Overweight from Equal Weight and the price target was raised to $106 from $101 at Morgan Stanley. Shares closed at $84.69 on Friday, and the consensus target price is $99.61.

Crocs Inc. (NASDAQ: CROX) was raised to Neutral from Negative at Susquehanna, despite a 7% post-earnings drop to $25.37 last Friday. Its shares were indicated up 4.4% at $26.49.

Crown Holdings Inc. (NYSE: CCK) was raised to Outperform from Neutral at Credit Suisse, which noted that the stock was effectively de-rated since its Signode acquisition.

Cullen/Frost Bankers Inc. (NYSE: CFR) was downgraded to Underweight from Equal Weight at Morgan Stanley. Shares closed at $103.03 on Friday, with a consensus target price of $104.82 and in a 52-week trading range of $90.02 to $121.66.

Denali Therapeutics Inc. (NASDAQ: DNLI) was started with a Buy rating and assigned a $26 fair value estimate (versus a $16.68 close) at Janney. The firm sees a large opportunity here for its approach to neurodegenerative diseases.

Finisar Corp. (NASDAQ: FNSR) was raised to Neutral from Sell at Goldman Sachs, after Friday’s 15.4% gain to $21.79 on news it was being acquired by II-VI.

Imperial Oil Ltd. (NYSE: IMO) was raised to Overweight from Equal Weight at Barclays.

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Stocks were hammered on Monday and were indicated to open handily lower on Tuesday due to another disappointment from Boeing and due to poor retail stock earnings reactions. Investors have been forced to see numerous waves of selling in 2018, and there has also been lower upside after buying immediately after the big market selloffs versus prior years. Now is the time for investors to start considering how they want their investments and assets positioned for 2019.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new investing ideas and trading ideas for investors and traders alike. Some of these analyst reports cover stocks to buy, while some of the analyst reports cover stocks to sell or stocks to avoid.

Additional commentary has been added on most of the daily analyst reports, along with trading history. The consensus analyst price targets mentioned and other valuation metrics are from the Thomson Reuters sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen from Tuesday, November 20, 2018.

ADT Inc. (NYSE: ADT) was started with an Outperform rating and was assigned a $12 price target (versus $7.68 close) at RBC Capital Markets.

Apple Inc. (NASDAQ: AAPL) was maintained as Neutral and saw its price target cut to $182 from $209 at Goldman Sachs, with the firm noting weakness in China and a less than stellar reception to the iPhone XR pricing. Apple was down almost 4% at $185.86 on Monday and was indicated down 3.5% at $178.40 on Tuesday. Another day, another Apple downgrade based on the same information as the prior 4 analyst cuts that took the shares lower. Apple is now in bear market territory.

Apptio Inc. (NASDAQ: APTI) was downgraded to Neutral from Buy and the target price was lowered down to $38 from $39 at Nomura/Instinet.

Aramark (NYSE: ARMK) was started as Outperform with a $47 price target (versus $35.83 close) at RBC Capital Markets. Aramark has a consensus analyst target price of $47.67.

BP PLC (NYSE: BP) was raised to Outperform from Market Perform at Raymond James. BP has a 52-week range of $36.15 to $47.82 and its ADSs were indicated down 1% at $40.50 on Tuesday.

Beacon Roofing Supply (NASDAQ: BECN) was maintained as Outperform at Wedbush Securities, but the firm slashed its target price to $30 from $50. Raymond James lowered its rating to Outperform from Strong Buy as well.

Cabot Oil & Gas Corporation (NYSE: COG) was downgraded to Neutral from Buy with a $29 target price at Goldman Sachs. Cabot Oil & Gas was indicated down 2% at $25.28 on Wednesday, versus a prior consensus analyst target price of $27.04.

Ciena Corporation (NASDAQ: CIEN) was downgraded to Hold from Buy at Needham & Co. Ciena shares were indicated down 4% at $31.00 on Tuesday, and the consensus analyst target price was last seen at $34.25.

Cintas Corp. (NASDAQ: CTAS) was started as Outperform with a $215 price target (versus $179.58 close) at RBC Capital Markets. Cintas had a consensus analyst target price of $210.78.

Exxon Mobil Corporation (NYSE: XOM) was downgraded to Underperform from Market Perform at Raymond James. Exxon Mobil was indicated down 1.1% at $78.31 and the consensus analyst target price was $89.42.

Stocks were looking to open higher on Wednesday morning after Tuesday’s bounce. While investors have seen numerous waves of selling in 2018, they also have seen lower upside after buying immediately after the big market sell-offs than in prior years. Now investors have to be considering how they want their investments and assets positioned for 2019.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new ideas for investors and traders alike. Some of these analyst reports cover stocks to buy, while some cover stocks to sell or to avoid.

Additional commentary has been added on most of the daily analyst reports, along with trading history. The consensus analyst price targets mentioned and other valuation metrics are from the Thomson Reuters sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen on Wednesday, November 28, 2018.

Abbott Laboratories (NYSE: ABT) was started with a Buy rating and assigned an $83 price target at UBS in a broader health care initiation. Shares closed up 1.3% at $69.71 on Tuesday, and the consensus target price is $78.94.

Boston Scientific Corp. (NYSE: BSX) was started with a Buy rating and assigned a $45 target price (versus a $35.26 prior close) at UBS. It has a 52-week range of $24.54 to $39.44 and a consensus price target of $42.29.

CME Group Inc. (NASDAQ: CME) was downgraded to Neutral from Buy at UBS, but the firm did raise its target price up to $204 from $185. Shares closed up 1.3% at $194.15 on Tuesday and were indicated to open flat on Wednesday. CME has a 52-week range of $143.68 to $197.08 and a consensus price target of $195.50.

DaVita Inc. (NYSE: DVA) was raised to Outperform from Market Perform with a $70 price target (versus a $62.68 close) at Raymond James.

Medtronic PLC (NYSE: MDT) was started with a Buy rating and assigned a $112 price target (versus a $93.13 close) at UBS. The consensus target is roughly $104, and the 52-week range is $76.41 to $100.15.

Skyworks Solutions Inc. (NASDAQ: SWKS) was raised to Equal Weight from Underweight and its target price was maintained at $76 (versus a $70.67 close) at Morgan Stanley.

Spirit Airlines Inc. (NYSE: SAVE) was raised to Overweight from Neutral and its target price was raised to $82 from $59 (versus a $58.76 close) at JPMorgan. This was after a 15% gain from a strong revenue outlook. The 52-week range is $34.36 to $62.01.

Advanced Micro Devices Inc. (NASDAQ: AMD) and Nvidia Corp. (NASDAQ: NVDA) both traded up over 2% in early indications on Wednesday. Mizuho’s Vijay Rakesh talked up rebounding GPU prices. AMD was down about 40% from its peak and Nvidia was down about 47% from its peak coming into this call.

Other key analyst calls from this Wednesday were seen as follows:

Allstate Corp. (NYSE: ALL) was maintained as Buy at Argus, but the firm lowered its target price to $106 from $115 following its third-quarter results. The 52-week range is $86.77 to $105.36, and the consensus price target is $107.40.

Aspen Technology Inc. (NASDAQ: AZPN) was raised to Buy from Hold and its price target was maintained at $100 (versus an $80.05 close) at Canaccord Genuity. The 52-week range is $65.03 to $118.86, and the consensus price target is $105.17.

Stocks are coming off of a miserable week, but the futures were marginally positive on Monday morning. Investors have seen less upside from buying immediately after the big market sell-offs than in prior years, and now they have to consider how they want their investments and assets positioned for 2019.

24/7 Wall St. reviews dozens of analyst research reports each day to find new ideas for investors and traders alike. Some of these analyst reports cover stocks to buy, while others cover stocks to sell or to avoid.

Additional commentary has been added on most of the daily analyst reports, along with trading history. The consensus analyst price targets and other valuation metrics are from the Thomson Reuters sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen on Monday, December 10, 2018.

Albemarle Corp. (NYSE: ALB) was raised to Buy from Hold with a $112 price target (versus an $88.65 prior close) at HSBC. It had a consensus analyst target of $123.31 and a 52-week trading range of $86.75 to $138.76. Its shares were indicated up almost 1% at $89.50, after falling 2.8% to $88.65 on Friday.

Alliance Data Systems Corp. (NYSE: ADS) was raised to Outperform from Market Perform with a $240 price target (versus a $180.44 close, after a 3.6% drop) at BMO Capital Markets.

Apache Corp. (NYSE: APA) was raised to Buy from Neutral but the price target was lowered to $34 from $39 at Seaport Global. The 52-week range is $32.96 to $50.03, and the consensus target price is $47.52.

Capital One Financial Corp. (NYSE: COF) was raised to Outperform from Neutral with a $101 price target (versus an $82.67 close) at Robert W. Baird. It had a consensus target price of $113.59, and the 52-week trading range is $81.85 to $106.50.

Comerica Inc. (NYSE: CMA) was downgraded to Neutral from Buy and the target was lowered to $84 from $107 at B. Riley FBR. Shares closed down 1.5% at $74.03 on Friday and were indicated another 0.7% at $73.59 on Monday. The consensus target price was $98.37.

CoreSite Realty Corp. (NYSE: COR) was downgraded to Hold from Buy with a $102 price target (versus a $97.19 close) at Jefferies.

Digital Realty Trust Inc. (NYSE: DLR) was raised to Buy from Hold and the target price was raised to $136 from $124 (versus a $115.72 close) at Jefferies.

Equinix Inc. (NASDAQ: EQIX) was raised to Buy from Hold and the target price was raised to $479 from $454 (versus a $386.47 close) at Jefferies.

Fortune Brands Home & Security Inc. (NYSE: FBHS) was raised to Buy from Neutral with a $54 target price (versus a $42.59 close) at Goldman Sachs.

JELD-WEN Holding Inc. (NYSE: JELD) was downgraded to Neutral from Buy with a $20 target price (versus a $16.89 close) at Goldman Sachs.

KeyCorp (NYSE: KEY) was downgraded to Reduce from Neutral with a $16 target price (versus a $16.73 close) at Nomura/Instinet.

Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS), which was recently the subject of buyout rumors, was raised to Buy from Neutral with a $20 target price (versus a $13.64 close) at Goldman Sachs.

Lowe’s Companies Inc. (NYSE: LOW) was maintained as Neutral with a $95 price target at Wedbush Securities ahead of this week’s analyst day.

24/7 Wall St.
Dire Warnings About Analyst Calls During Bear Markets and Broad Sell-Offs

Stocks surged on Friday’s strong payrolls report, but that only recaptured some of Thursday’s more than 600-point drop in the Dow Jones industrials. Investors have become used to the notion that buying the sell-offs comes with less reward, or even more losses, than in prior years. This makes it more difficult to position assets for the long haul when so many stop-loss levels are triggered.

24/7 Wall St. reviews dozens of analyst research reports each day to find new ideas for investors and traders alike. Some of these analyst reports cover stocks to buy, while others cover stocks to sell or avoid.

Additional commentary has been added on most of the daily analyst reports, along with trading history. The consensus analyst price targets and other valuation metrics are from the Thomson Reuters sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen on Friday, January 4, 2019.

Autoliv Inc. (NYSE: ALV) was downgraded to Underperform from Neutral and the target price was lowered to $64 from $84 (versus a $67.97 prior close) at Robert W. Baird.

Bed Bath & Beyond Inc. (NASDAQ: BBBY) was reiterated as Neutral with a $15 price target at Wedbush Securities. Sadly, the firm also noted that there remains more downside than upside risk to consensus expectations ahead of next week’s earnings indications. Even with years of the same issue, the retail giant is said to still suffer from competitive pressures in the home furnishings category at low-priced online and offline retailers.

Catalyst Biosciences Inc. (NASDAQ: CBIO) was started as Outperform with a $24 price target (versus an $8.77 close) at Oppenheimer. Its 52-week range is $6.20 to $37.00.

CBOE Global Markets Inc. (CBOE) was raised to Buy from Neutral with a $120 price target and added to the prized Conviction Buy list at Goldman Sachs.

Coty Inc. (NYSE: COTY) was raised to Neutral from Underweight at JPMorgan.

eBay Inc. (NASDAQ: EBAY) was downgraded to Neutral from Buy and the price target was cut to $32 from $34 (versus a $28.32 close) at Goldman Sachs.

Edison International (NYSE: EIX) was raised to Buy from Neutral with a $63 price target at Goldman Sachs.

Emerson Electric Co. (NYSE: EMR) was downgraded to Sector Perform from Outperform at RBC Capital Markets.

Etsy Inc. (NASDAQ: ETSY) was raised to Buy from Neutral and the price target was raised to $54 from $46 (versus a $46.03 close) at Goldman Sachs.

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Bull/Bear Outlook for 2019: How All 30 Dow Stocks Could Take the Market Up to 28,000

Exelon Corp. (NYSE: EXC) was downgraded to Sell from Neutral with a $42 price target at Goldman Sachs.

Expedia Group Inc. (NASDAQ: EXPE) was raised to Buy from Neutral and the price target was raised to $140 from $125 (versus a $108.52 close) at Goldman Sachs.

Intel Corp. (NASDAQ: INTC) was raised to Buy from Neutral with a $60 price objective at Merrill Lynch. The upgrade is based on higher margin businesses like data centers and noting that the concerns about business are overblown. Shares have a 52-week range of $42.04 to $57.60 and a consensus target price of $54.34.

Masco Corp. (NYSE: MAS) was raised to Buy from Neutral with a$36 price objective at Merrill Lynch.

Netflix Inc. (NASDAQ: NFLX) was reiterated as Buy with a whopping $400 price target at Goldman Sachs. The firm noted that Netflix is one of the most compelling names in the internet space and added it to the prized Conviction Buy List on Friday, now that shares have lost more than one-third of their value since last summer.

Nokia Corp. (NYSE: NOK) was raised to Outperform from Market Perform and the price target was raised to $7.50 from $5.00 at BMO Capital Markets. Nokia’s American depositary shares were indicated up over 3% at $5.77 on Friday, with a 52-week range of $4.75 to $6.41.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) was raised to Buy from Neutral at Guggenheim. Shares were indicated up over 2% at $381.00 Friday morning, with a consensus target price of $428.33 and a 52-week range of $281.89 to $416.49.

Skyworks Solutions Inc. (NASDAQ: SWKS) was downgraded to Neutral from Buy and the price target was cut to $70 from $100 at Nomura/Instinet.

Snap Inc. (NYSE: SNAP) was downgraded to Neutral from Buy and the price target was slashed to $6 from $10 at Goldman Sachs. Shares closed at $5.68 on Thursday, and the 52-week range is $4.82 to $21.22.

Southwestern Energy Co. (NYSE: SWN) was downgraded to Underperform from Neutral at Merrill Lynch.

United Technologies Inc. (NYSE: UTX) was downgraded to Sector Perform from Outperform and the price target was cut to $119 from $139 at RBC Capital Markets. UTC closed at $103.48 on Thursday. The 52-week range is $100.48 to $144.15.

Virtu Financial Inc. (NASDAQ: VIRT) was raised to Buy from Neutral at Goldman Sachs.

Vonage Holdings Corp. (NYSE: VG) was started with an Overweight rating and assigned a $14 price target (versus an $8.71 close) at Stephens. The 52-week range is $7.92 to $14.73.

Dana Inc. (NYSE: DAN) and Lear Corp. (NYSE: LEA) were both raised to Buy from Neutral at UBS.

Thursday’s top analyst calls included AbbVie, Agilent Technologies, Albermarle, Apple, Boeing, Cheniere Energy, First Solar, HCA, LabCorp, Lumber Liquidators, Teva Pharmaceutical and many more.

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