NVIDIA NASDAQ: NVDA The stock isn’t the most upgraded at the end of the Q3 earnings reporting season, ending a trend that’s been going on for nearly two years. Despite the potentially bad news for the market, here’s why investors should be optimistic that equities are on the upswing and that the S&P 500 will maintain its gains. NVIDIA is now ranked 12th on MarketBeat’s list Most upgrade stockis splatted by consumer names and companies that are well-positioned for the second wave of AI. The second wave of AI is the implementation of AI models and applications, a segment of the industry expected to grow faster and larger than the infrastructure that was the first wave.
Walmart emerged as the most upgraded stock after Q3 earnings season
Walmart today
(as of 12/17/2024 ET)
- 52-week range
- $51.04
▼
$96.18
- Dividend yield
- 0.87%
- P/E ratio
- 39.16
- Price target
- $93.69
Walmart NYSE: WMT The stock is the most upgraded since the Q3 earnings reporting season. The company received 38 positive revisions or upgrades in the past 90 days, 16 since Q3 results were released. Post-release activity includes a single downgrade to hold, but the $91 price target is in line with that. Broad consensus In mid-December. Consensus is in line with market pricing but is rising in 2024 due to revisions, with the most recent targets up 50% for the year and 15% from the Q3 release. The bullish trend leads to a new all-time high and the possibility of a move to $115 or higher.
The reason is performance. Walmart continues to prove it Leadership positionExceeding its competition by taking market share. Results for 2024 include continued improved performance, solid margins, improved guidance, and cash flow needed for strong capital returns. Capital returns include dividends and share buybacks that offset share-based compensation and reduce the increase compared to the previous year. The outlook for 2025 is for growth, cash flow trends and capital returns to continue. The catalyst for the stock price is the failed merger Kroger NYSE: K.R And Albertson’s NYSE: ACIWhich leaves Walmart’s grocery business untouched and safely behind its moat.
Meta Platform: Moves to second place
Meta platform today
(as of 12/17/2024 05:56 PM ET)
- 52-week range
- $337.02
▼
$638.40
- Dividend yield
- 0.32%
- P/E ratio
- 29.18
- Price target
- $638.00
Meta platform NASDAQ: META No new on the most upgraded stock list but has moved to second place. The stock received 37 positive revisions during the quarter, up from a Q3 release of 19. Highlights from the Q3 release included better-than-expected 19% top-line growth and leveraged gains on the bottom line aided by AI.
AI is helping to drive engagement and monetize traffic across the Meta platform family of apps, including Facebook, and its impact is expected to grow. The only bad news from the report is that AI spending is expected to increase in 2025, but this is offset by long-term benefits that are expected to drive investment. Meta is also deepening its partnership with Oracle, using Oracle Cloud to train its Llama AI models while Oracle integrates it into its services.
Analysts rate Meta Platforms as a moderate buy and see it slightly ahead of consensus. However, the consensus target is rising to nearly 100% in 2024, and the upward trend is still positive. Recent targets lead to a high-end range near $800 30% up From mid-December price points.
Salesforce: A force to be reckoned with
Salesforce today
(as of 12/17/2024 ET)
- 52-week range
- $212.00
▼
$369.00
- Dividend yield
- 0.46%
- P/E ratio
- 57.73
- Price target
- $377.51
Salesforce NYSE: CRM is one of the best positioned AI service companies today. The business has used data mining and machine learning since its inception and built on its leadership position. Today, Salesforce is the #1 platform for integrated CRM services, allowing businesses to generate, store, track and use their data while improving efficiency and keeping customers happy. is
Highlights of Q3 Include mixed results regarding the consensus forecast. Still, the bar was set high, and continued growth, leveraged bottom-line results, cash flow, a solid balance sheet, and capital returns offset lower-than-expected earnings. Salesforce buys shares and now pays dividends. The company joined the ranks of wannabe Dividend Aristocrats, launching a token distribution earlier in the year. The payout is roughly 12% of earnings, leaving plenty of room for annual growth, which could run in the double-digit range due to earnings growth.
about the analystSalesforce stock received 37 positive revisions in Q4, 22 since Q3 results were released. The consensus target shows a low-single-digit rise from the $355 level but is rising, up more than 50% in the past year and more than 15% in December, with revisions to higher levels. The high-end range puts this market near $450 in 2025, up another 30%.
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