When interest rates go up, it becomes harder for the companies in the S&P 500 to make more money. Actually, many experts are worried that the United States might go into a recession soon. But there is some good news too. Analysts say that because the economic situation is uncertain, there are some new investment opportunities available.
According to CFRA Research, here are nine stocks that have recently been recommended to buy.
Charles River Laboratories International Inc. (CRL)
Charles River Laboratories is a company that provides specially bred rodents for testing drugs and other services related to drug development and safety. An analyst named Sel Hardy has upgraded the company’s stock and believes it is a good investment. This is because the company had a strong financial performance in the first quarter, the stock is priced attractively, and they have made improvements to address supply issues with nonhuman primates.
Hardy also predicts that the growth of biologic drug research will benefit Charles River in the long term. He considers the company to be the top player in providing products and services for preclinical drug trials. Additionally, the company has a significant number of orders lined up for 2023, which indicates a positive outlook.
CFRA, a research firm, has given Charles River Laboratories a “buy” rating and set a price target of $233 for the stock. On June 9, the stock closed at $197.68.
SAP SE (SAP)
SAP is a company that develops software for businesses to manage their accounting, supply chain, and customer relationships. An analyst named Angelo Zino has upgraded SAP’s stock and believes the company has a positive future because it is shifting towards a cloud-based business model.
According to Zino, the revenue from cloud services and software provides a clear financial outlook, and he expects it to grow by 6% to 8% annually until at least 2024. In the first quarter, the company’s backlog of cloud orders increased by 25%. Zino predicts that by 2025, cloud revenue will account for 60% of SAP’s total sales, up from the current 43%.
CFRA, a research firm, has given SAP a “buy” rating and set a price target of $162 for the stock. On June 9 , the stock closed at $132.72.
ODP Corp. (ODP)
ODP is the parent company of Office Depot, a store that sells office supplies and offers business services and digital workplace technology. An analyst named Warring has upgraded the stock and believes that the company’s business-to-business segment has been performing well. Additionally, their program to return capital to investors aggressively is creating value for shareholders.
However, ODP is facing competition from online retailers like Amazon.com Inc., which may lead the company to continue closing Office Depot stores and experience negative growth in retail sales. Despite this, Warring points out that the company’s buyback program worth $1 billion is significant, representing more than half of its entire market value.
CFRA, a research firm, has given ODP a “buy” rating and set a price target of $51 for the stock. On June 9, the stock closed at $43.80.
New Fortress Energy Inc. (NFE)
New Fortress Energy is a company that operates globally in the field of energy infrastructure, specifically focusing on the procurement and sale of liquified natural gas (LNG). The stock of New Fortress has experienced a decline of more than 30% in 2023. However, Glickman, an analyst, has upgraded New Fortress’s stock based mainly on what he considers to be an overly negative valuation of the company.
Although New Fortress faces risks related to its relatively high level of debt in an environment of high interest rates, Glickman believes that there will continue to be strong demand in Europe for natural gas from the United States. He also notes that the company has already sold 80% of its projected LNG volumes for 2023.
CFRA, a research firm, has given a “buy” rating to New Fortress Energy and set a price target of $37 for the stock. On June 9, the stock closed at $29.22.
Devon Energy Corp. (DVN)
Devon Energy is a major independent company in the United States that focuses on exploring and producing oil and gas. Analyst Stewart Glickman has upgraded the stock, stating that it has an attractive valuation following a decrease in its value of nearly 20% since the beginning of the year. Glickman also mentions that the costs of services used by the company seem to have reached their highest point, which could be positive news for Devon Energy’s capital expenses in the latter half of 2023 and 2024. The stock is currently trading at around 7.3 times Glickman’s estimated earnings per share for 2023.
CFRA, a research firm, has given a “buy” rating to Devon Energy and set a price target of $61 for the stock. On June 9, the stock closed at $49.87.
Revvity Inc. (RVTY)
Formerly known as PerkinElmer, Revvity is a company that provides advanced scientific instruments, products, and services to customers in various sectors such as pharmaceuticals, industry, academia, and government. Analyst Hardy has upgraded the stock and believes that the company has successfully carried out its rebranding campaign in May 2023 and also sold its enterprise and analytical solutions businesses.
According to Hardy, the money obtained from the sale will help improve Revvity’s financial situation, and the company is now more focused on its core business, which has higher growth potential. Hardy also finds the company’s valuation attractive. He highlights Revvity’s long history of technological innovation.
CFRA, a research firm, has given Revvity a “buy” rating and set a price target of $137 for the stock. On June 9, the stock closed at $111.09.
Dillard’s Inc. (DDS)
Dillard’s is a company that operates department stores in the United States, selling a variety of products including fashion apparel, cosmetics, home furnishings, and more. The company also has a construction segment that builds and renovates its stores. Analyst Zachary Warring has upgraded Dillard’s stock and believes that the company has done an impressive job of countering the negative effects of online competition. They have achieved this by reducing the number of shares available and maintaining a strong balance sheet.
Warring states that Dillard’s has taken advantage of a robust U.S. consumer market and is well-positioned to achieve its highest earnings and revenue in 2023. CFRA, a research firm, has given a “buy” rating to Dillard’s stock and set a price target of $350. On June 9, the stock closed at $343.36.
News Corp. (NWSA)
News Corp. is a media company that owns various newspapers, cable programming, books, and digital media, including well-known brands like the Wall Street Journal, Barron’s, and MarketWatch. Analyst Siye Desta has upgraded the stock and acknowledges that News Corp. is facing challenges in advertising and digital real estate. However, there are indications that these pressures may be easing.
To counter these challenges, News Corp. has implemented a plan to reduce costs by over $160 million annually. Additionally, the company’s professional information business experienced an impressive 38% growth in revenue during the first quarter.
CFRA, a research firm, has given a “buy” rating to News Corp.’s stock and set a price target of $20. On June 9, the stock closed at $19.21.
Goodyear Tire & Rubber Co. (GT)
Goodyear is the largest tire manufacturer in the United States. In addition to tires, the company produces other products made of rubber, plastic, and chemicals. Analyst Garrett Nelson has upgraded Goodyear’s stock and believes that the significant drop in its value during 2022 presented a great opportunity to buy, as the demand for travel in 2023 is expected to be favorable and generate strong tire sales.
Nelson highlights that around 80% of Goodyear’s tire sales in 2022 were high-margin replacement tires. He predicts that the positive trend in replacement tire sales will continue in 2023. Nelson forecasts a revenue growth of 4% in 2023 and 3% in 2024.
CFRA, a research firm, has given Goodyear’s stock a “strong buy” rating and set a price target of $20. On June 9, the stock closed at $12.86.