Geopolitical tensions, the prospect of Federal Reserve rate hikes and inflation fears have roiled the stock market and left investors unsettled.
The major indexes have just notched a second consecutive week of losses, and the conflict between Russia and Ukraine continues to brew.
Investors are looking for guidance and a reminder to keep a long-term perspective. Top analysts are calling out their favorite picks even in these turbulent times, according to TipRanks, which tracks the best-performing analysts.
Here are five stocks these Wall Street pros are highlighting.
Cloudflare (NET) is emerging as a standout player in the cybersecurity space. The firm has been acquiring customers and seeing retention rates increase, and its recent earnings report shows that. (See Cloudflare Earnings Data on TipRanks)
Alex Henderson of Needham & Co. wrote that Cloudflare’s “strong technology is capable of solving critical problems and facilitating growing technology trends.” He said, “We recommend investors buy and hold NET, even with the interest rate and valuation turmoil. We have conviction in this name.”
Henderson reiterated his Buy rating on the stock, and he added a price target of $245 per share.
The analyst also highlighted Cloudflare’s strong earnings performance last quarter, which saw accelerating revenues and a raised guidance beyond Wall Street consensus estimates. Henderson still believes the guidance to be conservative and primed for easy revenue beats moving forward.
The analyst wrote that he sees Cloudflare in a space of its own, currently “pivoting from network investment and a freemium customer capture model to the development of deeper service functionality.”
Henderson is rated by TipRanks to be No. 66 out of more than 7,000 analysts. He has been successful rating stocks 66% of the time, and he has returned an average of 35.3% on each one.
The holiday season typically brings with it massive volumes of travel and vacation planning business, but for companies like Expedia (EXPE), last year was different. The omicron variant of Covid-19 caused yet another wave of pandemic-related cancellations. However, the stock now appears poised for a strong summer ahead.
That’s the opinion of Brian Fitzgerald of Wells Fargo, who projects recovering demand for the travel booking company as omicron fears subside. Additionally, the company recently posted encouraging quarterly earnings despite the blip in late-2021 travel. (See Expedia Website Traffic on TipRanks)
Fitzgerald rated the stock a Buy, and he bullishly raised his price target to $250 from $225.
While cancellations rose during the holiday season, they were not enough to overwhelm the company’s financial standing. Moreover, the wave had less of an impact on Expedia compared to the earlier delta variant. This may help calm investors’ qualms on the stock if the pattern is to continue.
The analyst was confident in his tone, writing that “EXPE remains our preferred play on the online travel sector recovery.” He believes the summer may prove lucrative, especially with international and city travelers.
It is important to note that Covid-19 driven uncertainty may still cause EXPE to see volatility in the near-term. However, Fitzgerald noted that the company has made significant progress “across key initiatives — streamlining brand strategy and tech platforms, and accelerating the pace of innovation/execution.” Expedia is ready to ramp its loyalty program catalyzing upside in the long-term, he added.
Out of over 7,000 financial analysts, Fitzgerald ranks as No. 105. His stock picks have been correct 59% of the time, and he has averaged a return of 41.1% on each one.
