With earnings season off and rolling, investors everywhere are looking for the best names as they rebalance their portfolios. Wedbush Securities just brought out a list of some of its leading figures in the market, and there won’t be many surprises here. Wedbush likes tech stocks Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Salesforce (NASDAQ:CRM) going into the latest bout of earnings. All three are up going into Monday afternoon’s trading.
A research note from Wedbush’s own Dan Ives took a closer look at the overall market. It attempted to empathize with the common investor on several fronts. Those fronts included issues like enterprise demand, the potential for more layoffs, digital advertising issues, and China’s return, among others. The note suggested that tech spending levels aren’t dropping nearly as fast as some believed. Therefore, stocks should not have dropped as far as they already have.
However, Microsoft, Apple, and Salesforce fared so well in Wedbush’s estimates because they have already seen layoffs, suggesting that they are eager to get out in front of the problem. Further, Ives also pointed to recent changes at Salesforce that should help it out. From “major strategic changes” to new investment from Elliott Investment Management, Salesforce has quite a bit of room to run.
Overall, analyst consensus currently calls Microsoft and Apple stock Strong Buys, while Salesforce is a Moderate Buy. Salesforce’s average price target of $189.09 per share gives it upside potential of 20.92%. However, Microsoft’s average price target of $281.92 per share only gives it 15.4% upside potential.