Retail investors typically rely on online information to begin selecting their next investments for their portfolios. However, there is a precise way to align new capital with the trends Wall Street analysts are now observing. The benefit is that investors don’t have to spend hours of in-depth analysis needed to reach a stock-picking conclusion, but rather connect the dots behind recent analyst ratings.
To do this, investors should choose one reputable source, such as a specific analyst or investment bank. For this reason, today’s focus is on the three stocks that… Bank of America Company New York Stock Exchange: PAC Analysts decided to upgrade relatively straight. There must be a broader trend in the background to make them behind these three stocks at the same time.
When you successfully connect the dots and reverse engineer what these analysts might be looking at, investors can tap into a goldmine of additional investment ideas for the future. On that note, stocks like Airbnb Inc Nasdaq: ABNB, Hershey Company New York Stock Exchange: HSEAnd even Dollar General Company New York Stock Exchange: General Directorate It landed on Bank of America analysts’ latest boosts list today.
Inflation and real estate price themes reinforce the value proposition of Airbnb shares
Even after the Federal Reserve’s (Fed) interest rate hike cycle, Average real estate prices In the US it was still up to 32% higher than pre-Covid-19. The market has become so hot that even after shifting into an easing cycle and lowering interest rates over the past six months, the real estate market appears to be out of reach for many consumers.
Airbnb today
(As of 12/24/2024 at 05:19 PM ET)
- 52 week range
- $110.38
▼
$170.10
- P/E ratio
- 47.36
- Price target
- $139.48
This is why the Mortgage Market Index is It is still down to its lowest level in 1996Which means that lowering yields has not yet achieved the desired effect on mortgage demand. This is a good thing for Airbnb stock given the flexibility and diversification it offers consumers looking to wait out the market.
By renting through “Long Term Stays” on the platform, consumers can avoid high rental prices and wait for the market to offer them a better price for the home they want to buy. This trend is evident in the company’s key performance indicators (KPIs). As of the last quarter.
Nights and experiences bookings are up 8% over the past 12 months, fueling the platform’s revenue growth and demonstrating how attractive the business model is today. This growth helped Airbnb increase its free cash flow to $1.4 billion during the quarter, and it is expected to continue to grow.
Knowing this, investors shouldn’t be surprised to see analysts at Bank of America put a price target on the stock at $159, up from their previous valuation of $154. Since this new valuation came as recently as December 2024, investors have a new opinion on a potential 18.5% upside from where the stock is trading today.
Inflation pressures could help the defensive nature of Hershey stock
Hershey offers affordable products in the consumer staples sector, and this defensive nature has kept a lot of price action away from the stock, as there are hotter stocks on the market today that warrant more attention. However, Bank of America analysts decided to give a bullish view on the name from December 2024.
Hershey today
(As of 12/24/2024 at 05:19 PM ET)
- 52 week range
- $166.69
▼
$211.92
- Dividend yield
- 3.21%
- P/E ratio
- 19.64
- Price target
- $184.61
With a valuation of $180 per share, these analysts see a 6% upside from where the stock is trading today, which may be on the lower end, considering that a potential buyout buyer on the block is looking to buy Hershey for more than $180 per share. .
The first offer made for Hershey stock did not impress management, because it was too cheap. This article will walk investors through a takeover offer and where a more acceptable price might be. In short, it’s closer to the stock’s all-time high of around $275.
Bears know this could be next for Hershey stock, which is why investors could see a 5.7% decline in short interest in the company over the past month alone. This is an indication of bearish capitulation in the face of upcoming bullish factors in Hershey.
Dollar General stock, double-digit upside opportunity
Investors can now see the trend here, where inflation in the real estate sector is driving more growth and upside in Airbnb, and how this inflation is keeping defensive names on the back burner (like Hershey stock). This theme extends to the ultimate value proposition to consumers during a higher inflation environment.
Dollar General Today
Dollar General
(As of 12/24/2024 at 05:19 PM ET)
- 52 week range
- $72.12
▼
$168.07
- Dividend yield
- 3.16%
- P/E ratio
- 12.30
- Price target
- $98.27
Dollar General stock requires a $95 price target from Bank of America analysts as of December 2024, which would imply an upside of 24.3% from its current price. These analysts weren’t the only ones willing to express their optimistic view, as analysts from Principal Financial Group recently boosted their holdings in the company.
The 2.6% increase from December 2024 has brought the group’s position in Dollar General shares to a high of $21 million, another sign of upside that investors should consider moving forward.
Before you consider Airbnb, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up…and Airbnb wasn’t on the list.
While Airbnb currently has a “Hold” rating among analysts, the top-rated analysts think these five stocks are better buys.
View the five stocks here
MarketBeat just released its list of 10 penny stocks that have been overlooked by the market and may be undervalued. Click on the link below to see which companies made the list.
