During the fourth-quarter earnings season, a few companies have seen significant price movements as a result of unexpected reports, analyst ratings, business announcements, and other growth and risk factors.
This year, the uncertainty of the earnings season is accompanied by a high inflation rate and the anticipation of rate hikes. Furthermore, the current situation in Ukraine is raising fears that a war may erupt soon, wreaking havoc on the market and, as a result, on corporate profitability.
Therefore, many investors are seeking to protect their portfolios and ensure minimal impact from the economic environment, at this time.
TipRanks’ Smart Score System is here to help. The Smart Score allows an investor to examine a company based on eight important characteristics, including hedge fund and insider trading activities. Each stock is then graded on a scale of one to ten, with ten being the best, to assist investors in making informed decisions.
With this in mind, we examined TipRanks’ Top Smart Score Stocks and discovered two stocks that received a “Perfect 10.”
Nike (NKE)
Nike is the first firm on the list, having received a “Perfect 10” rating yesterday. It is the world’s top footwear and sports apparel designer, marketer, and distributor.
Every quarter, the firm makes attempts to increase sales, which include investments in a range of shopping applications as well as a focus on digital activities.
In the last reported fiscal second quarter, the corporation posted better-than-expected Q2 2022 performance. Strong consumer relationships and brand strength helped the company beat consensus projections for quarterly revenues and profitability.
Analysts are upbeat about this stock, with 19 Buy ratings and 3 Hold ratings. The shares are priced at $141.59 and the average NKE price target of $187.19 implies around 32% upside from that level.
Jefferies analyst Randal Konik is impressed with the company’s digital ambitions and product innovation skills. NKE, according to Konik, is one of the most powerful worldwide brands in the industry, thanks to technological advancements, China’s strength, and expanding Direct and Digital sales.
In addition, investors have been enthusiastic about the stock. It’s worth mentioning that investors holding portfolios on TipRanks maintain a very positive outlook on NKE stock. The data shows that 7.6% of these investors have increased their holdings in Nike stock in the last 30 days.
McDonald’s (MCD)
Next up is a fast-food chain McDonald’s, which has boasted a “Perfect 10” since yesterday.
The firm has a good track record, strong fundamentals, consistent cash flow, and a robust outlook. It has a track record of raising dividends and returning cash to shareholders.
McDonald’s has generated strong financial performance despite several hurdles on both the demand and supply sides of its operations, owing to its inventive capabilities and the various benefits of its business model.
The firm posted strong fourth-quarter results last month, with both revenues and profits per share up over the year-ago quarter. Revenues increased by 13% year-over-year to $6.01 billion, while earnings increased by 33% to $2.23 per share.
Highlighting the company’s sustained pace in digital efforts and menu innovation, Andy Barish of Jefferies is delighted with McDonald’s Q4 performance. The company’s “acceleration in breakfast and chicken sandwich momentum,” according to Barish, should continue to be a near-term driver.
Along with Barish, the majority of experts are optimistic about this firm. On TipRanks, McDonald stock commands a Strong Buy consensus rating based on 22 Buys and 2 Holds. The average McDonald price target is $288.14, representing 13.7% upside potential.
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