‘There’s also a ray of light for stock investors out there!’
Towards the end of the first half of 2022, equity markets remained gloomy coupled with aggressive policy tightening by the Federal Reserve (Fed) in an effort to control inflation in the United States (US).
That string, investors are seen moving away from equities to find a stronger site in the long run as opposed to quick profits.
Yet there are still some investors who are optimistic about the outlook for equities, so some Wall Street experts have suggested potential stocks despite market volatility.
Apple
Although the iPhone giant is experiencing a decline in sales due to supply chain issues, it remains a $ 2 trillion company with strong long -term prospects.
Deutsche Bank analyst Sidney Ho set a ‘buy’ status despite lowering the $ 200 price target (TP) to $ 175.
He believes the company's performance remains intact compared to other mega caps despite its shares down 26% so far this year.
He added that Apple shares are expected to reach the highest level in 5 years, which is more than 30 times earnings per share for the next 12 months.
NetApp
The public storage provider company is Ho’s bet even though its shares are down 30% so far this year.
This is because the company demonstrates exceptional execution ability in maintaining a net balance sheet and cash despite market volatility.
Ho is also betting on the company’s long -term prospects with merger and acquisition plans, which will definitely restore the company’s growth.
The company’s TP was lowered from $ 90 to $ 84 and the status was changed to ‘hold’, reflecting its long -term prospects.
Oracle
Another public storage giant that recorded relatively good quarterly results during market uncertainty.
The company’s acquisition of computer technology firm Cerner is seen to benefit its first quarter earnings.
Monness Crespi Hardt & Co. analyst Brian White is seen betting on the company’s momentum which is expected to continue until fiscal year 2023.
The foundation held by White is the company’s significant upside potential to its current valuation even if its next 12 -month earnings TP is above its highest valuation.
IHS Holding
The telecom giant has been the favorite of Jonathan Atkin of RBC Capital Markets with an optimistic quarterly record even though its shares are down 28% so far this year.
Atkin commented, the company’s exposure in the African market with the highest customer growth rate will be a key weapon in driving its long -term growth.
That string, he has placed a ‘buy’ status with TP $ 21 on the company and bet on the company’s prospects in the Nigerian market.
Bank of America
The only firm that is taking advantage of the environment of interest rate hikes by the Fed, which will increase net interest income in the near term.
This was agreed to by Gerard Cassidy of RBC Capital who stated the firm’s estimated net interest income was offset in 2022 with lower than expected investment banking revenue.
Thus, Cassidy is betting on bank profits ahead of the monetary policy tightening cycle despite reducing TP from $ 51 to $ 45.
