Not all stocks are down in the third quarter
Oh, the times are changing. Not only is the S&P 500 earnings growth outlook declining, but the analyst is increasingly on the defensive. The last round of reviews contains quite a few rebates and price target reductions, but there are some rays of light for investors. Among the latest updates are three stocks that we believe are well positioned for the times, such as Dollar General, Crox and Antero Resources.
Dollar General orders another update
General dollar (NYSE: DG) it has been growing under the influence of analysts ’results and sentiment and this trend is not over. The company just received the second of two updates in a two-week period that have the consensus feeling of Marketbeat.com and the higher price target. The latest comes from Cleveland Research, which has been upgraded to Buy from Neutral without setting a price target. In the company’s eyes, market share gains are accelerating and should worsen by tough margins over the coming quarters. Convenient store locations and ease of supply chain problems are also noted as power engines.
The new purchase rating compares favorably with Marketbeat.com’s consensus on Moderate Purchase, but did nothing to improve the target price. The $ 245 consensus price target assumes the shares are already reasonably priced, but we believe it is behind the market. The consensus price target is rising in 12, 3 and 1 month comparisons despite steady growth and superior performance. Looking at the chart, stocks may have trouble moving above the $ 250 resistance target, but we see it falling at the end of the quarter. Dollar General will report its gains on August 25th.
Crocs gets an update
Crocs (NASDAQ: CROX) He has just made his first analyst update since the last earnings report was released in early May. This is surprising considering that the results of the first quarter exceeded the consensus on the upper and lower results and the orientation was raised, but who should we criticize? The bottom line is that Loop Capital upgraded the shares to Buy from Hold and assigned it a $ 75 target price compared to the $ 134 consensus on Marketbeat.com. In the eyes of Loop Capital, the valuation of the company is attractive after a strong sale and the controls of the channel are promising.
Marketbeat.com’s consensus price target has dropped about $ 20 from the high set this year, but is still rising sharply from last year and the downward trend appears to be over. The bottom line here is that the new $ 75 target is about 50% above the current price action and even the low price target offers an advantage to investors. The company will report next week in August and is expected to record a sharp sequential increase in revenue of 46% driven by organic acquisitions and sales gains.
Antero Resources is pushing for an update
Between the high price of oil and the recent decline in energy stocks, it is not surprising that energy operators, especially independent drillers, Antero Resources (NYSE: AR), are being updated. The latest comes from Truist Financial, which updated the shares in Buy from neutral. The update compares favorably with the Moderate Purchase consensus and has the highest rating. The upgrade also includes a target price of $ 50, which is $ 5 above the analyst’s average target and assumes there is about 60% of the rise available. On the chart, price action at Antero Resources has fallen by almost 40% since it peaked earlier this year. Price action is now testing support over the 150-day EMA where we expect a rebound to begin.