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Not just Apple: the stocks chosen by Top analysts

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Not just Apple: the stocks chosen by Top analysts

Apple, but also Spotify, CVS Health and other titles. Investing in such a stressful environment can be challenging_ after a week full of corporate earnings and economic updates, it’s still hard to tell whether a recession can be avoided this year.

To help in the process, here are five stocks picked by top Wall Street analysts, according to TipRanks, a platform that ranks analysts based on their past performance.

Apple

Ahead of Apple’s December quarterly results, out February 2, investors are quite aware of the challenges the company has been facing lately.

From production disruptions at its Zhengzhou, China plant to rising costs during its first quarter of fiscal 2023 Apple had to go through everything.

Needless to say, the company expects growth to slow on a quarterly basis.

However, Brian White, analista di Monness Crespi Hardt, expects that the quarterly report will be in line with or marginally higher than the expectations of the Big Tech giant itself.

White believes that growing revenues from services, iPad and wearables, home appliances and accessories can be a lifesaver.

Also the expert believes that pent-up iPhone demand will come into play in the coming quarters, once Apple gets over the production problems.

As a result, the expensive valuation of about 27 times earnings estimates for 2023 is considered appropriate.

White ranks 67 out of the nearly 8,300 analysts he follows on TipRanks. His reviews were positive 63% of the time and each judgment generated an average return of 17.7%.

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Spotify

Subscription audio streaming service Spotify is one of Brian White’s top three favorite titles.

“Spotify is riding a favorable long-term trendenhancing its platform, tapping into a large digital advertising market and expanding its audio offerings,” White said, reiterating a buy rating and a $115 price target.

The analyst acknowledges some challenges facing Spotify this year, but remains optimistic about its margin improvement plans and several favorable industry developments.

Although it could be difficult to attract new premium subscribersas we face continued pressure from an environment to reduce digital ad spend, Spotify is expected to benefit from the ad-supported monthly active users (MAU).

Still, White is particularly optimistic about the decline of mobile app store monopolies, after the European Union approved last year il Digital Markets Act in force since May 2023.

One of the advantages for Spotify will be the possibility to promote its cheapest subscription offers, making the offers available even outside of Apple’s iPhone application.

CVS Health

CVS, which manages a large retail pharmacy chain, in recent weeks it has entered the list of Tigress Financial Partners analyst Ivan Feinseth, who reiterated a buy rating and a $130 price target on the stock.

According to Feinseth, the “consumer-centric integrated model” of the company and its growing focus on primary care should help make healthcare more accessible and affordable for customers.

CVS bought primary care provider Caravan Health under this strategy.

Also, the upcoming acquisition of Signify Health “adds home health services and provider enablement capabilities.”

The analyst believes that the ongoing expansion of the new CVS store format, MinuteClinics and HealthHUB, it will increase customer engagement and continue to be a key growth catalyst.

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Feinseth is also convinced that the merger of CVS with managed healthcare company Aetnawhich occurred in 2018, created a healthcare giant.

Now CVS would be well positioned to capitalize on the changing dynamics of the healthcare market as consumers are acquiring greater control over spending on health services.

Feinseth’s beliefs are reliable, given his 208th position among approximately 8,300 analysts in the TipRanks database.

Aside from that, its track record of 62% profitable valuations is worth considering, with each valuation producing a average yield of 11.8%.

Shake Shack

The operator of the hamburger fast food chain Shake Shack has achieved good results both domestically and abroad thanks to its fast-casual business concept.

Peter Saleh, analyst at BTIGexpresses his view on the company.

Shake Shack is a pre-eminent concept within the category of best burgers, with a rare restaurant chain whose notoriety and brand recognition exceed its actual size and sales base,” said Saleh, who reiterated a buy rating on the stock with a $60 price target.

On the negative side, the analyst points out that the expansion of services outside of New York weakened Shake Shack’s margin profile, driving low returns per unit and exposing the company to greater sales volatility.

However, margins appear to have bottomed out and the analyst expects profitability to gain momentum over the next 12-18 months. A combination of higher menu prices and deflationary raw material costs should push the company’s margins to mid-range levels.

Saleh has a 64% success rate and each of his evaluations yielded an average of 11.7%. The analyst ranks 431st among TipRanks’ 8,000+ analysts.

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TD Synnex

The business process service provider TD Synnex last week it released fiscal fourth-quarter results, in which earnings beat consensus estimates and the dividend was increased.

Vincent Colicchio, analyst at Barrington Research analyzed the results, noting that the rapid growth of advanced solutions and high-growth technologies were the main positive factors.

Though he trimmed his fiscal 2023 earnings forecast due to an expected increase in interest expense, Colicchio remained optimistic about the company’s efforts to achieve cost synergies by the end of the current fiscal year. Looking ahead, the estimates are so by a largely growing positive trend, albeit with some hiccups.

The main driver of growth in the first half of fiscal 2023 is expected to be advanced solutions and high-growth technologies, while in the second half it is expected to be PCs and peripherals and high-growth technologies”observed the analyst, reiterating the buy rating and raising the price target, raised to $130 from $98 over the next 12 months.

Importantly, Colicchio ranks 297th among TipRanks’ nearly 8,300 analysts, with a 61% success rate. Each of his ratings yielded an average return of 13%.

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