Stock Analysis & Ideas

These 2 Stocks Chosen by Top Analysts can Boost your Portfolio

Story Highlights

Turbulent times as these justify being picky about stocks. Top Wall Street analysts are considering two stocks for a healthy portfolio currently.

It is alright to be picky about stocks in a market like 2022. Even more so after May’s inflation data revealed the growing ruthlessness of the situation. Consumer confidence is also running low so far this month, according to the University of Michigan’s preliminary consumer sentiment index for June.

The Fed is not expected to stop the aggressive monetary policies anytime soon, and may even take it up a notch in its future meetings without much consideration of a possible recession. These events are only strengthening the speculation that a recession might be right around the corner.

Stock investors are facing the dilemma of staying invested, entering the market at the relentless dips, or taking their money and running from the stock market altogether. No doubt, there are many nooks and crannies in the market where tremendous potential exists for investors. However, it is difficult to identify them with so much negativity around.

In such a situation, it may be wise for stock pickers to keep an eye on what equity analysts are saying, because they may hold the key to making the correct investment decision. In this regard, we tried to ease the process by selecting two stocks from the TipRanks Top Analyst stocks database, which have been rated as Buys by most analysts who are the finest in the industry.

Teradyne (NASDAQ: TER)

Automatic test equipment designer and manufacturer Teradyne is benefiting from a consistent improvement in the demand for its industrial automotive and memory products.

Moreover, the company is positioned well to benefit from the eventual entry of semiconductors into new applications related to the Internet of Things market, especially based on its core semiconductor test business.

Moreover, over the past five years, the company’s shares have returned 212.50%, and even turned into profitability during this period.

Last month, Piper Sandler analyst Weston Twigg, who also happens to be a five-star rated analyst on TipRanks, reiterated a Buy rating on the stock.

Though the company is poised to bear the brunt of the supply chain challenges that are expected to persist this year, the pushback of shipments into the next year may ease the company’s revenue generation capabilities for 2023. This is good news for the company as a softer end-market demand versus high chip supply is expected in 2023, which may be offset by the delayed shipments of Teradyne.

Keeping the near-term challenges in mind, Twigg lowered the price target to $127 from $163. However, his stance indicates that the stock is a great long-term investment.

Wall Street consensus is bullish on the stock, with a Strong Buy rating based on four Buys and one Hold. The average price target on TER is $138.20, indicating a 42.52% upside potential from pre-Monday price levels.

Rent the Runway (NASDAQ: RENT)

E-Commerce platform Rent the Runway is a unique website where customers can choose to rent or buy designer fashion apparel and accessories. This makes the platform attractive for average customers as well as rich ones.

With the easing of the pandemic-led curb on social events, the first quarter of RENT went well, with revenues topping the company’s own expectations. Strong trends of subscriber growth was the primary top-line tailwind.

Piper Sandler analyst Erinn Murphy believes that RENT can leverage its operating expenses as it expands its business.

Keeping the near-term challenges of a potential broader-market demand slowdown in mind, Murphy cut the price target to $12 from $23. However, she kept a Buy rating on the stock.

Wall Street is also optimistic about RENT’s prospects, with a Strong Buy rating based on nine unanimous Buys. The average price target for RENT is $11.11, suggesting an upside of $227.73% from pre-Monday price levels.

Bottom-Line

No matter whether it is a bear market or a bull market, it is always a good idea to listen to what experts are saying. Also, the above two companies show numerous upsides for growth, and can be great options for investors who are ready to climb the wall of worry and look beyond the current turbulence.

Read full Disclosure

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More
Videos