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AGCO, DAL: 2 Stocks That Analysts Are Focusing on Right Now
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AGCO, DAL: 2 Stocks That Analysts Are Focusing on Right Now

Story Highlights

Agco and Delta Air are two stocks that are grabbing analysts’ attention right now with their favorable fundamentals, solid end-market demand, strong future outlook, and growth strategies.

We are entering the new year with the awareness that 2023 may throw us into even direr straits than 2022. However, whatever comes, investors can still ensure a strong portfolio by investing smartly and keeping an eye on what experts are recommending. To that end, TipRanks’ Analysts’ Top Stocks too, which compiles the stocks that top Wall Street analysts are recommending, can come in handy while making informed decisions. Agco (NYSE:AGCO) and Delta Air Lines (NYSE:DAL) are two stocks that have been most recommended by the top-performing analysts in the past week.

Agco (AGCO)

Agricultural equipment manufacturer Agco boasts a widespread network of dealers and distributors across 140 countries.

Strong farm fundamentals and increased demand for Agco’s precision agriculture solutions are supporting a healthy flow of orders. The company continues to witness a healthy market demand for its technology-focused products, which are driving sales and margin growth. The company’s raw material inventory is expected to remain elevated, helping Agco navigate through supply chain challenges.

Last week, Credit Suisse analyst Jamie Cook reiterated her Buy rating on the stock and raised the price target to $174 from $143. In the company’s Analyst Day, Agco highlighted its plans to capitalize on three growth catalysts, which include Fendt agricultural machinery, precision agriculture, and sustainable offerings of equipment parts and services. The company expects to boost sales and expand operating margins with these strategies.

Is AGCO a Good Stock to Buy?

Wall Street thinks AGCO stock is a Strong Buy, based on eight Buy ratings and two Hold ratings. The average price target of $158.60 indicates an 18.21% upside over the next 12 months.

Delta Air Lines (DAL)

The U.S.’s legacy carrier, Delta Air, is flying on the back of improved air travel demand, particularly domestic.

The company posted an upbeat performance outlook earlier this month in which it guided impressive top-and-bottom-line growth for the December quarter as well as the full year of 2023.

Moreover, Citi analyst Stephen Trent recently maintained his Buy rating on his favorite U.S. carrier and even raised the price target to $59 from $55, buoyed by its “combination of international route exposure, seat mile cost dilution, and relatively stable fuel prices.” He believes these factors should drive shares over the next year.

Considering the U.S. domestic air travel recovery is happening quicker than several international corridors, Delta Air stands to benefit from increased passenger volumes.

Is DAL Stock a Buy?

The Wall Street consensus gives DAL stock a Strong Buy rating based on 13 Buys and one Hold. The average price target of $49.07 indicates an upside of 48% over the next year.

Takeaways

Choosing well-capitalized stocks with robust fundamentals and a strong outlook can ensure a healthy portfolio despite a market downturn. Both Agco and Delta Air have what it takes to create wealth for their investors in any market environment.

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