Ahead of a recession, Tractor Supply (NASDAQ:TSCO) and ServiceNow (NYSE:NOW) are two stocks that have been most recommended by the best-performing Wall Street analysts over the past two days.
Experts are convinced that a recession is brewing. However, when market sentiment is low, it’s usually the best time to build a strong portfolio. It makes sense to keep track of what Wall Street is recommending as one of the initial steps to building a portfolio. To that end, TipRanks’ Analysts’ Top Stocks tool can help.
Tractor Supply (NASDAQ:TSCO)
Tractor Supply Company, one of America’s largest retail farm and ranch store chains, offers livestock, pet, and animal products, agricultural and rural maintenance products for hardware, gardening power equipment, and more.
Tractor Supply is focusing on its growth initiatives which include the expansion of its store base and the inclusion of technological advancements to drive traffic and, in turn, revenue growth. The company opened its ninth distribution center last week and expects the build-out of its 10th distribution center this year, with operations beginning in the spring of 2024.
Is TSCO Stock a Buy, According to Analysts?
11 and six Holds give TSCO stock a Moderate Buy consensus rating on Wall Street. The average TSCO stock price target of $243.38 indicates upside potential of 7.85% over the next 12 months.
Software company ServiceNow is a dominant name in the IT services industry, which continues to win market share by bringing cloud-based processes in place of legacy on-premise systems. The company recently delivered solid Q4 results, beating top and bottom-line estimates and providing a strong 2023 outlook. Following ServiceNow’s earnings report, a slew of analysts reiterated their Buy ratings on the stock.
From the Q4 print, Guggenheim analyst Ray McDonough observed that despite some weak areas, the upbeat guidance indicates durable back-office growth and solid free cash flow generation. McDonough placed ServiceNow in the list of his top 2023 picks and believes the stock to be a safe haven for investors in an uncertain macro environment.
Additionally, five-star-rated Piper Sandler analyst Rob Owens thinks that despite continued macroeconomic challenges, customers are engaging in priority spending on the ServiceNow platform as they try to enhance efficiencies in the current environment.
Is NOW Stock a Buy, According to Analysts?
McDonough expects ServiceNow stock to reach $450, while Owens expects it to hit $525. The average NOW stock price target of $515.83 implies upside potential of 12.4%. Moreover, NOW stock has a Strong Buy consensus rating, based on 24 Buys and two Holds.
A recession is not everlasting but can wreak havoc in equity portfolios. Choosing well-capitalized stocks with a solid long-term outlook and compelling fundamentals can start reversing the ill effects of a recession on your portfolio (if any) as soon as the market recovers. Both Tractor Supply Co. and ServiceNow have what it takes to beat a market down cycle.