Last week was marked by significant central bank decisions, leading to increased volatility in the markets. Global central banks are now shifting their policies to be more data-dependent when it comes to rate adjustments. Surprises from the European Central Bank (ECB) and the Bank of Japan (BOJ) have disrupted expectations and caused notable currency movements. Traders are bracing for more volatility in the coming days as they grapple with the implications of the recent central bank actions. The US dollar, euro, and yen are particularly in focus on Monday as investors try to determine if the Federal Reserve and ECB's rate hikes signal the end of their tightening cycles. Meanwhile, the Bank of Japan's shift towards a looser grip on bond yields adds further complexity to the global monetary policy landscape. These developments have left investors uncertain about the future trajectory of interest rates and their potential impact on the financial markets.
Oil prices slightly decreased on July 31 but remained close to three-month highs, heading towards the biggest monthly gains in over a year, reported Reuters. The market anticipates that Saudi Arabia will continue its voluntary output cuts into September, contributing to a tightening of global supply. Brent crude futures were down 30 cents at $84.69 a barrel, while U.S. West Texas Intermediate crude stood at $80.36 a barrel, down 22 cents. Both Brent and WTI settled on July 28 at their highest levels since April, rising for the fifth consecutive week, supported by tightening oil supplies worldwide and expectations of an end to U.S. interest rate hikes. Saudi Arabia is expected to announce the extension of its voluntary oil output cut of 1 million barrels per day (bpd) for another month including September at the OPEC+ meeting on August 4. Global oil demand reached a record 102.8 million bpd in July, according to Goldman Sachs, which revised up its 2023 demand estimates for India and the U.S. due to stronger economic growth projections, offsetting a downgrade for China's consumption. Exxon Mobil CEO Darren Woods predicts record oil demand for this year and the next, potentially boosting energy prices in the latter half of the year. In the U.S., the number of oil rigs decreased for the eighth consecutive month in July, with energy firms cutting one rig to reach 529 rigs, according to Baker Hughes' weekly report on July 28.
On the Asian side, the ASEAN nations are collaborating on a cross-border payment system with the aim of promoting financial inclusivity across the region, reported CNBC. Singapore, Indonesia, Malaysia, and Thailand have implemented a system that allows residents in these countries to pay for goods and services using their local currencies. This move is anticipated to have several positive impacts, including boosting tourism, increasing consumer spending, and facilitating remittance flows between the nations. Experts predict that the implementation of the cross-border payments system will be particularly advantageous for micro-enterprises, small- and medium-sized businesses, and the unbanked population. On the Chinese front, China's factory activity continued to contract for the fourth consecutive month in July, and non-manufacturing activity also slowed to its weakest level this year. The official manufacturing purchasing managers' index (PMI) for July was 49.3, slightly better than the forecast of 49.2 but still below the 50-point level that indicates expansion. Similarly, the official non-manufacturing PMI came in at 51.5 in July, showing a slowdown in activity compared to previous months. China's struggles to revive growth momentum are evident due to soft global demand and insufficient domestic demand. Enterprises reported challenges in the current external environment, with decreased overseas orders and insufficient demand as their main difficulties. These readings point to a challenging economic recovery in China, as top leaders describe it as "tortuous." The situation is attributed to various factors, including insufficient domestic demand, operational difficulties for some enterprises, risks in key areas, and a complex external environment.
Meanwhile, across the stock market in the U.S., stocks such as Meta Platforms, Inc. (NASDAQ:META), The Boeing Company (NYSE:BA), and Comcast Corporation (NASDAQ:CMCSA) are getting a huge vote of confidence from the Wall Street analysts. Check out the complete article to see the details of these and other stocks.
10 Stocks Getting a Huge Vote of Confidence From Wall Street Analysts
On July 28, Cantor Fitzgerald raised its rating for Coursera, Inc. (NYSE:COUR) from Neutral to Overweight, signifying a more positive outlook on the company's prospects. Along with this upgrade, the analyst at Cantor Fitzgerald has set a new price target of $17, which represents an increase from the previous target of $13. The reasoning behind this upgrade lies in Coursera, Inc. (NYSE:COUR) robust performance during the second quarter, where it reported "solid" results. This indicates that the company is starting to experience the advantages of scale, which could potentially lead to increased efficiency, cost savings, and improved profitability.
Coursera, Inc. (NYSE:COUR), as a prominent online education platform, has been gaining traction and popularity among learners worldwide. With its diverse course offerings and accessibility, it has been able to attract a broad user base. As more individuals seek to enhance their skills and knowledge through online education, Coursera, Inc. (NYSE:COUR) position in the market becomes increasingly significant. The upgrade from Cantor Fitzgerald reflects the belief that Coursera's positive momentum is likely to continue and might even accelerate in the future. By realizing the benefits of scale, Coursera, Inc. (NYSE:COUR) could potentially improve its margins and achieve better financial performance. This, in turn, could lead to increased investor confidence and attract more attention from the market.
On July 28, Alamos Gold Inc. (NYSE:AGI) received an upgrade from TD Securities. The company's rating was raised from Hold to Buy, indicating a more optimistic outlook on Alamos Gold Inc. (NYSE:AGI) future prospects. The analyst responsible for the upgrade, Steven Green, has maintained a price target of $21 on Alamos Gold Inc. (NYSE:AGI) shares. This price target represents the level at which TD Securities believes the stock could reach in the future and suggests the potential for significant growth from its current trading price. The upgrade to Buy from Hold suggests that TD Securities believes Alamos Gold Inc. (NYSE:AGI) stock has a strong potential for appreciation and may outperform the broader market or its industry peers.
Just like Meta Platforms, Inc. (NASDAQ:META), The Boeing Company (NYSE:BA), and Comcast Corporation (NASDAQ:CMCSA), Alamos Gold Inc. (NYSE:AGI) is getting a huge vote of confidence from the Wall Street analysts.
Palm Valley Capital made the following comment about Alamos Gold Inc. (NYSE:AGI) in its Q4 2022 investor letter:
“For the full calendar year, the Fund’s top performers were Coterra Energy (ticker: CTRA), Amdocs, and Alamos Gold Inc. (NYSE:AGI). Coterra’s stock rose sharply along with energy prices at the beginning of 2022. Amdocs delivered record operating results during the year and demonstrated the strength of its market position serving the world’s leading communication service providers. All the Fund’s precious metals holdings, led by Alamos, contributed positively to performance in 2022, with a 1% collective contribution from gold and silver equities. We think this was a good outcome relative to gold and silver prices that ended the year essentially flat, after a summer swoon. Additionally, precious metals miners were down, on average, in 2022.”
JP Morgan analyst Michael Rehaut has recently upgraded Owens Corning (NYSE:OC) from Underweight to Neutral and simultaneously increased the price target from $95 to $133. This upgrade comes as a result of JP Morgan's positive outlook on the company's composite materials and roofing businesses. In a report released on July 28, Michael Rehaut stated that Owens Corning (NYSE:OC) composites margins have already experienced a notable decline in 2022 due to a softer demand environment. However, the roofing margins are expected to remain robust at least through the end of the year. This positive outlook on the roofing segment is likely a contributing factor to the upgrade. Although some investors may still have concerns about the company's elevated margins, JP Morgan believes that Owens Corning (NYSE:OC) stock is trading at a reasonable valuation. The stock is currently valued at approximately 6.6 times the estimated EBITDA for 2023, which represents about a 5% discount compared to the company's five-year average and a 15% discount compared to its ten-year average. This upgrade and optimistic analysis may attract increased interest in Owens Corning (NYSE:OC) stock as the company's prospects appear to have improved, especially in its composite materials and roofing businesses.
On July 28, JPMorgan upgraded its rating for New York Community Bancorp, Inc. (NYSE:NYCB) from Neutral to Overweight, signaling a more positive outlook on the company's future prospects. Along with this upgrade, JPMorgan has also increased the price target for New York Community Bancorp, Inc. (NYSE:NYCB) stock from $13 to $16, reflecting higher expectations for its potential growth.
One of the key factors driving this upgrade is the bank's second-quarter performance, which marked the first full quarter to include the impact of the recently added Signature teams. These newly integrated teams likely bring valuable expertise and assets to New York Community Bancorp, Inc. (NYSE:NYCB), and their contributions are now more accurately reflected in the financial results.
As a result of having a better understanding of the earnings potential of the combined company with the addition of Signature teams, JPMorgan has revised its earnings estimates significantly higher for the years 2023-2024. This suggests that JPMorgan believes the integration of the Signature teams has positively impacted New York Community Bancorp, Inc. (NYSE:NYCB) financial performance and could continue to do so in the coming years.
On July 28, BTIG upgraded its rating for The Trade Desk, Inc. (NASDAQ:TTD) from Neutral to Buy with a $103 price target. BTIG believes the company's improving fundamentals could lead to stronger results in the current year and drive faster growth with margin improvement in the future. Initially, BTIG was positive about The Trade Desk, Inc. (NASDAQ:TTD) market position but had concerns about aggressive 2023 expectations. However, their view has completely reversed now. According to BTIG analysts, the programmatic market is growing at a substantial pace of 20% to 25% annually, driven by increased ad spend on lower funnel digital formats and automation outside of search and social platforms. The Trade Desk, Inc. (NASDAQ:TTD) is already established in connected TV and Retail Media segments and is seen as an attractive alternative to DV360, indicating the potential to surpass high-end market growth. BTIG acknowledges that valuing The Trade Desk, Inc. (NASDAQ:TTD) can be complex and evaluated the company using a discounted cash flow method, excluding executive stock-based compensation packages for a comprehensive understanding of its value.
Just like Meta Platforms, Inc. (NASDAQ:META), The Boeing Company (NYSE:BA), and Comcast Corporation (NASDAQ:CMCSA), The Trade Desk, Inc. (NASDAQ:TTD) is getting a huge vote of confidence from the Wall Street analysts.
Baron Fifth Avenue Growth Fund made the following comment about The Trade Desk, Inc. (NASDAQ:TTD) in its Q1 2023 investor letter:
“The Trade Desk, Inc. (NASDAQ:TTD) is the leading internet advertising demand-side platform, enabling programmatic (automated) buying of digital advertising. The company is benefiting from the growth in CTV, while also expanding its market share as advertisers find its neutral positioning in the market attractive; the company only operates on one side of the market (the buy side) as opposed to Google which also purchases ads for its own assets (such as YouTube). Thus, Google operates under a structural potential conflict of interests: on the one hand, its advertising customers are interested in paying as little as possible for the ads they purchase, but on the other hand, its publishing assets such as YouTube, are interested in getting as much as possible for the ads they sell. Trade Desk’s management continues showing excellent performance under an uncertain macro backdrop. In its last quarterly results, the company reported 24% year-over-year revenue growth with 50% adjusted EBITDA margins, while also providing outlook that was slightly above expectations. This revenue growth rate is quite impressive when considered against the negative growth rates reported by most other digital advertisers, including -2% for Google search and -4% for Meta. We believe the company would be a key beneficiary as advertising dollars increasingly shift from linear TV to CTV. We have therefore increased our holding.”
