Top analysts on Wall Street are bullish on Oracle and Caterpillar

Investors took a break last week, as key averages ended Friday with gains, but volatility is likely to remain a major theme in the future.

Not only are investors weighing the recently announced Federal Reserve rate hike, but they are also thinking about inflation and the war between Russia and Ukraine. It’s easy to get caught up in the day-to-day cycle of the stock market, but investors need long-term insight to manage turmoil.

Wall Street pros pick their favorite stocks, featuring names they think have long -term potential, according to TipRanks, which tracks the best -performing analysts.

Here are five names to look at this week.

Oracle (ORCL) seems more attractive to tech investors, according to Brian White of Monness, Crespi, Hardt & Co.

The massive technology conglomerate has recently reported “respectable” earnings, as well as a “healthy” guideline for its future, he said. The analyst noted that ORCL’s revenue growth is currently highest since the company moved towards cloud-based solutions.

White rated the stock as a buy, and he added a target price of $ 126.

The analyst wrote that “Oracle offers investors a high-quality, value game with the opportunity to participate in an attractive innovation in the cloud.” The company’s relationships with TikTok and the healthcare sector remain a source of encouragement, and there is a strong momentum in its SaaS business.

White noted, however, that the current volatility experienced by tech stocks could continue to weigh on ORCL shares. Moreover, it’s not very clear that investors are excited about Oracle’s proposed acquisition of health IT firm Cerner for $ 28.3 billion.

White is ranked by TipRanks as No. 265 of nearly 8,000 analysts. His success rate is at 60%, and he returns an average of 25.2% from his stock picks.

Take Two Interactive Shares (TWO) was recently rejected after TTWO filed with the Securities and Exchange Commission its S-4 form regarding its acquisition of Zynga. However, Andrew Uerkwitz of the Jefferies Group sees the resulting price action as over -produced.

In a published report, the analyst reiterated his bull case for Take-Two, saying the stock is providing “an unprecedented value today.” Moreover, he appreciates the strength seen in the video game publisher’s net bookings, which he expects to increase in FY24 and FY25.

Uerkwitz rated the stock as a buy, and he set a target price of $ 231.

He said that despite the subtle guidance provided by TTWO management, these metrics are traditionally conservative.

Take-Two fills its massive content pipeline with heavy investments in research and development, and more recently, sales and marketing. Uerkwitz wrote that the company “possesses some of the highest quality content among U.S. publishers” and that an “unprecedented wave of content” is expected to flood the market. (See Take-Two Risk Analysis at TipRanks)

The analyst did not rule out a positive future rerating for the stock – when its pipeline became more visible.

Of the nearly 8,000 analysts in the TipRanks database, Uerkwitz ranks as No. 152. He was successful when he rated stocks 61% of the time, and he returned an average of 27.7% each.

With the return of office workers, speculation began to arise that companies ’IT spending would also decrease. However, Wall Street believes the secular tailwind will continue to strengthen ServiceNow (NOW).

Brian Schwartz of Oppenheimer & Co defended. this case in its recent stock report, which noted that “secular demand for modern cloud software, workflow digitization, business continuity, and analytics” is aligned with the NOW business model.

Schwartz rates the stock as a purchase, and he calculates a target price of $ 660 per share.

The analyst acknowledged the uncertainty and subsequent volatility surrounding high-growth and tech names, and he highlighted near-term investment risk. However, Schwartz also assumes that ServiceNow’s industry peers are behind the company in the amount of satisfied customers.

Despite the reported slowdown in IT spending, Schwartz expects a strong recovery for ServiceNow in back-office deals and demand. (See ServiceNow Stock Charts at TipRanks)

The analyst maintains the No. 1 ranking. 19 of the nearly 8,000 analysts at TipRanks. His stock picks were correct 68% of the time, and they resulted in an average return of 48.5% each.

As the war between Russia and Ukraine continues, many expect an increase in cyberattacks against the West. The need for more cybersecurity raises the profile of companies like SentinelOne (S).

Even prior to this development, SentinelOne maintained a position of the fastest growing company in the scope of Alex Henderson of Needham & Co. The analyst recently said that “SentinelOne’s purpose-built platform architect to address this market has huge advantages and expects that they will drive market share profits.”

Henderson rated the stock as a buy, but he declared a lower target price at $ 50 from $ 82.

Despite the reduction in projection, Henderson remained strong in the company’s outlook. He said the cybersecurity firm recently released their quarterly earnings on a strong note, which is superior in areas including customer growth and revenues.

Aside from its operating margin being tighter than one would like, Henderson has featured the company’s technology in a competitive market. (See SentinelOne Hedge Fund Activity on TipRanks)

Moreover, SentinelOne’s management did not include in its guidance its recently announced acquisition of identity detection software company Attivo. The merger contributions to SentinelOne will only be an added bonus when it comes to next quarter’s report.

Of the nearly 8,000 expert analysts, Henderson is ranked as No. 110. His success is at 60%, and he returns an average of 31% on his stock picks.

Russia’s war with Ukraine contributed to rising prices for commodities, primarily due to Moscow’s popularity as a mining exporter. This development has also lifted stocks of companies that facilitate acquisitions elsewhere, such as Caterpillar (PUSA).

The world’s largest mining equipment, machinery, and turbine manufacturer is well -prepared to capture the substantial amount of increased spending in the sector. Stephen Volkmann of the Jefferies Group noted that Russia will not be accepted back into global markets any time soon, and operations within its borders are unreliable.

Volkmann upgraded the stock to one purchase, and he set a target price of $ 260.

The well -known company was formerly used by investors as an inflationary hedge, and in a world of rising costs, Volkmann expects a decade of reinvesting in its machinery.

The analyst said the war in Eastern Europe was “primarily reshaping global commodity markets, driving structural higher pricing and diversified supply in both the mining and oil and gas sectors.”

Beyond the primary commodity -related business, CAT works in the commercial construction industry, which is susceptible to the more likely effects of stagflation. However, Volkmann does not see possible losses more than a dent in Caterpillar’s ​​valuation. (See Caterpillar Dividend Data at TipRanks)

On TipRanks, Volkmann is rated as No. 231 of nearly 8,000 analysts. He is correct when choosing stocks 67% of the time, and he returns an average of 23.5% each.