In today’s “Expert Spotlight,” we highlight two recommendations from the senior managing director of Evercore ISI, Mark Mahaney, who has been a Wall Street analyst for about 24 years. Mahaney is the head of the Internet Research team and covers the technology sector. Among the stocks that he is optimistic about are Amazon (AMZN) and Uber (UBER).
It is still too early to confirm anything about where the economy is heading. Moreover, with the year starting on the wrong foot, most stocks are trading at attractive discounts, having lost considerable value due to the challenges. Thus, careful identification of the right stocks now can make a huge difference later when the economy stabilizes.
Bearing this in mind, we turned to five-star rated expert, Mahaney, who has been consistently placed in the “top 3” ranked analysts for 15 years and as a No. 1 ranked analyst for five years by Institutional Investor.
Expert’s Record
Notably, 51% of Manahey’s ratings have been profitable, generating 29.8% returns per rating on an average. Furthermore, he is ranked 93rd among 7,991 analysts tracked on TipRanks, supported by his success rate, impressive average return per rating, and high statistical significance (a metric that increases with each rating).
The analyst’s most profitable stock recommendation was Upwork (UPWK) in the year between March 26, 2020, and March 26, 2021, during which the stock gained a whopping 632.2%.
The analyst made 12 recommendations in the past 10 days, among which we picked two of his Buy-rated stocks based on his success with rating each of them.
Amazon
Despite being one of the largest companies in the world, the AMZN stock has shed more than 16% of its valuation this year thus far. However, skeptics were proved wrong when the company revealed the sheer strength with which it fought the headwinds in Q2.
The improvement in operating income in Q2 and an encouraging outlook for the metric for the ongoing quarter are hints at abating cost pressures, despite the headwinds that Amazon still needs to fight for the rest of the year.
Moreover, Amazon Web Services (AWS) has been the focus of the company as a high-margin, recurring-revenue business. The double-digit growth delivered by AWS in Q2 strengthens our conviction in the stock.
Mark Mahaney has a price target of $180 on AMZN stock. He has a 52% success rate, generating 11.37% average returns per rating on Amazon.
Wall Street’s consensus sentiments resonate with that of Mahaney, with 39 analysts having a Buy rating on the stock and one having a Hold rating, giving Amazon an overall rating of Strong Buy. The average price target currently stands at $176.04, indicating an upside of 23.48% from pre-Friday price levels.
Uber
Mobility technology and service company Uber is another of Mahaney’s favorite picks, which delivered solid Q2 results recently. The company, which has lost more than 27% so far this year, generated positive cash flow for the first time, which cheered investors.
The surge of customers on the platform bore was testimony to the strength of demand for transportation and Uber’s capability to address it.
Uber’s focus on providing rational driver incentives is bringing more drivers onboard. Moreover, its efficient operational capabilities and Uber One membership service are helping the company scale profitability. Again, its Delivery service unit has managed to be minimally impacted by macro headwinds. These positives are ensuring a healthy and sustainable top-line growth for Uber.
Raising his price target on Uber to $75 from $69, Mahaney was encouraged by upbeat Q3 guidance for bookings and EBITDA. The analyst believes that there is a lot of room for Uber’s shares to move higher.
Mahaney has had success with 13 out of 20 of his ratings for Uber, and has garnered 20.86% average returns per rating on the stock.
Wall Street is bullish on UBER, with a Strong Buy rating based on 24 Buys and two Holds. The average price target for UBER is $46.8, suggesting a 47% upside from pre-Friday price levels.
Bottom-Line
Wall Street experts spend the better part of their days analyzing stocks and digging into the economy. Therefore, it makes sense to keenly follow what they say, as they may hold the key to fruitful investment decisions. and has successfully rated 60% of the time in his career as an analyst.
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