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3 Stocks to Make Your Portfolio Smart(er)
Stock Analysis & Ideas

3 Stocks to Make Your Portfolio Smart(er)

Macroeconomic conditions including rising interest rates and increasing inflation are driving investors to sell off stocks. With the earnings season underway, investors are fretting whether Internet giants like Alphabet (GOOGL) and Amazon (AMZN) will be able to sustain their high growth in this environment.

Even the recent Q1 earnings of Netflix (NFLX) were not very reassuring for investors, as the streaming giant reported its first subscriber loss in more than a decade.

In such a volatile scenario, where does it leave investors? TipRanks has the answer.

The TipRanks Smart Portfolio allows investors to benchmark their portfolios against the best-performing portfolios on TipRanks and gain valuable insights. The best performing portfolios on TipRanks are the top 10% of portfolios on TipRanks, which consistently outperform the markets.

Investors can use the Smart Portfolio tool to track their portfolios against the Best Performing Portfolios based on asset allocation (both sector-wise and assets-wise), and dividend yield.

Let’s take a look at which stocks are among the top three of the Best Performing portfolios on TipRanks.

Apple (NASDAQ: AAPL)

Apple comprises 18.2% of the best-performing portfolios on TipRanks. The technology giant is expected to release its second-quarter results on April 28.

Monness Crespi Hardt analyst Brian White has projected revenues of $98.8 billion and earnings of $1.54 per share in Q2 for AAPL.

White’s forecast assumes a 20% decline in revenues quarter-over-quarter, still “better than the four-year average of down 30% QoQ [quarter-over-quarter] for past March quarters.”

The top-rated analyst continues to be bullish on the stock with a Buy rating, as AAPL’s “successful creation of a strong services business has provided the market with more confidence in the company’s long-term business model.”

White is also positive about AAPL’s expansion of its product portfolio and its “work on a pipeline of new innovations.” Furthermore, the analyst feels that amid macro uncertainties, investors are likely to be more attracted to “large, well-managed, tech companies with strong balance sheets that benefit from digital transformation, such as Apple.”

The analyst has a price target of $199 on the stock.

Other analysts on Wall Street are also upbeat about AAPL, with a Strong Buy consensus rating based on 23 Buys and six Holds. The average AAPL stock forecast is $193.11, implying 17.3% upside potential at current levels.

Tesla (NASDAQ: TSLA)

Tesla is the second-most popular stock among the best-performing portfolios on TipRanks, and comprises 11.5% of these portfolios. Tesla delivered impressive Q1 results earlier this week as quarterly earnings more than trebled year-over-year to $3.22 per share, surpassing analysts’ estimates of $2.26 per share.

The EV manufacturer’s revenues surged 81% year-over-year to $18.8 billion beating the Street’s estimate of $17.8 billion.

As a result, Deutsche Bank analyst Emmanuel Rosner views TSLA as a “top pick among automakers in the current environment thanks to its pricing power, solid execution, and having secured necessary components to support its volume targets for the year.”

Following the Q1 results, the analyst reiterated a Buy on the stock and raised the price target to $1,250 from $1,200.

The rest of the analysts on the Street, however, do not side with Rosner and are cautiously optimistic, with a Moderate Buy consensus rating based on 16 Buys, seven Holds, and five Sells. The average TSLA stock forecast is $1,060.89, implying 4.9% upside potential from current levels.

Microsoft (NASDAQ: MSFT)

Microsoft makes up around 8% of the best-performing portfolios on TipRanks. However, the stock has suffered amid a broad-based technology sell-off and has declined year-to-date by 16%.

Wells Fargo analyst Michael Turrin remains optimistic about the stock, and believes that while the Street is focused on MSFT’s cloud business, Azure, its “Productivity & Business Processes segment has quietly delivered an uptick in growth across each major business, benefiting from one of the biggest shifts in the history of business users.”

The analyst is also bullish on Microsoft’s long-term growth opportunities, and thinks that “Microsoft’s dominant position (~90% productivity share) continues to provide a broad base for natural LT [long term] cross-sell opportunities (+ pricing power) somewhat under-appreciated at the moment.”

While the analyst has a Buy rating on the stock, Turrin lowered the price target to $400 from $425.

Other Wall Street analysts side with Turrin and have a Strong Buy consensus rating based on 26 unanimous Buys. The average MSFT stock forecast is $371.13, implying 33.8% upside potential from current levels.

Bottom Line

It seems that these stocks could certainly give investors good returns over time.

In addition, analysts are also optimistic about these stocks, indicating that they could be well poised to withstand macroeconomic headwinds.

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