Top Wall Street analysts like stocks like Uber and Shopify

The latest battle of market volatility is nothing short of stomach-churn for short-term investors.

In fact, a sell-off dominated by tech names and growth has spread an ailment that left the three major averages in negative territory for January.

Analysts make long-term projections of the companies they cover, allowing them to view short-term stock transfers. In fact, some of Wall Street’s top analysts have pointed out the names they prefer for long -term play, according to TipRanks, which tracks the best -performing stock pickers.

E-commerce trends are cooling, and parts of some players in the space have suffered. Shopify (SHOP) was no less noticeable, and saw its valuation fall by approximately 50% from its most recent peak in November. For many analysts, the discounted share price on the merchant point-of-sale platform looks attractive. (See Shopify Stock Charts at TipRanks)

One of these strong voices is Darren Aftahi of Roth Capital Partners, who predicts 30% year-over-year growth in gross merchandise value for SHOP’s upcoming revenues. Calling the company a leader in e-commerce, he noted the consolidation of consumer spending trends and the solid position held by Shopify within its space.

Aftahi rated the stock Buy, and gave a target price of $ 1,400.

Most importantly, the analyst discussed Shopify’s recent strategic partnership with Chinese e-commerce giant JD.com. The deal will allow SHOP merchants to “sell directly to Chinese customers through the JD Marketplace,” and is expected to open them up to “a new TAM of ~ 500M+ active JD customers in China.”

By streamlining the merchant barrier to entering the Chinese market from 12 months to 3 to 4 weeks, Aftahi is confident that the deal will be added to Shopify’s topline for the second half of 2022.

Financial aggregator TipRanks currently maintains Aftahi at a No. 1 standing. 222 of the more than 7,000 analysts in its database. His success rate is at 39%, and his ratings return him an average of 40.7% each.

For Meta Platforms (FB), the last months of 2021 are chaotic: The myriad of negative headlines and insights from whistleblower Frances Haugen and subsequent testimonies before lawmakers on Meta algorithms have scared some investors.

Monness’s Brian White predicts a less turbulent year for Meta, which is expected to release quarterly earnings in Feb. 2. The technology conglomerate is also expected to “continue to benefit from the digital ad trend, participate in accelerated digital change, and evolve in the metaverse.” (See Meta Platforms Website Traffic at TipRanks)

White rated the stock a Buy, and set a price target of $ 460.

The analyst noticed that ad growth slowed but still maintained “respectable” spending speeds. Moreover, he doesn’t expect FB to be out of the woods about its continued negative publicity. Its upcoming revenue call will likely also include hot topics such as Apple’s privacy policies, user interaction on Instagram Reels, and general e-commerce trends.

Despite these issues, White sees FB at an attractive discounted valuation, and remains bullish overall for its earnings call.

Of the more than 7,000 analysts, No. 141 White. His stock picks were correct 66% of the time and returned him an average of 31.1%.

The pandemic has certainly caused a roller-coaster of emotions for investors holding Uber Technologies (UBER), but analysts are back to their bullish expectations on the stock. Initially, the omicron variant caused more panic and higher mobility restrictions, although it now appears that levels are returning to pre -pandemic numbers.

This situation was enhanced by Scott Devitt of Stifel, who argued that the global mobility recovery looks healthy and expects the company to perform near the higher end of its guidance range. Uber is expected to release earnings in Feb. 9 after closing the market and holding an investor conference the next day. (See Uber Hedge Fund Activity at TipRanks)

Devitt assigned a Buy rating to the stock, and declared a price target of $ 50.

He wrote that Uber recently changed its loyalty program, introducing its membership service to Uber One. The new iteration of its previous Uber Eats Pass will connect users to the benefits found at a variety of different business companies, including its delivery, grocery, and rideshare apps. The move is expected to garner higher engagement within Uber’s loyal base and Devitt views it as “continuing to be positive as it strengthens the value proposition than the previous offer.”

Furthermore, Uber has been busy integrating its freight capabilities with the newly acquired Transplace, a logistics management software firm.

Of more than 7,000 financial analysts, Devitt is rated as No. 335. The analyst’s stock picks were successful 52% of the time and returned him an average of 23.9% each.

Until this past quarter, the Covid-19 pandemic on HubSpot had been good (HUBS). As soon as the news of the omicron variant hit the headlines, the stock began to fall sharply. However, analysts appreciate the direction the software company is taking in marketing, sales, and enterprise management. (See HubSpot Insider Trading Activity on TipRanks)

Jefferies’ Samad Samana was one of those in the crowd, insisting that the stock “remains one of our favorite mid-cap names.” He noted that the end of 2021 and the first few weeks of 2022 provide projections for the year.

Samana rated the stock as Buy, and released a target price of $ 800 per share.

The analyst wrote about a stable and strong growth outlook for HubSpot in 2022, due in part to its “enterprise traction and higher attach rates.” The company has seen larger businesses use its software and stick with it even after they move up. In this sense, it fights with established players like Salesforce.

Samana said that “some large customers who previously moved away from HUBS have expressed interest in moving back to HUBS due to significant development in the product suite and the ability to handle larger, more complex customers.”

TipRanks holds Samana at No. 386 of more than 7,000 analysts. His stock picks returned correctly 53% of the time and had an average return of 29.9%.

Pandemic-induced digital transformation has captured another cloud-based enterprise and work flow-solutions company and is increasing its valuation. Like its peers, ServiceNow (NOW) also had a big fall in early November, but was able to release top earnings for the fourth quarter. According to Brian Schwartz of Oppenheimer & Co., the stock has a possible recovery on its cards.

The analyst noted the steady momentum in ServiceNow’s business, fueled by demand for IT services. Regarding this request, NOW revenues encouraged him, writing that “these results should rest on concerns that enterprise IT demand is somehow falling.” (View ServiceNow Revenue Data at TipRanks)

Schwartz rates the stock as Buy, and calculates a price target of $ 660.

Investors should always be attentive when companies set guidance above Wall Street consensus estimates. ServiceNow has done so despite its continued progress in a slowed macro environment over the past two months.

Additionally, Schwartz noted his bullishness despite changes in share prices, writing that “NOW offers a good balance of strong top-line growth, margin expansion, and high cash-flow. margins, which even if valuation multiples are further compressed across space, its unique financial profile and enterprise-wide IT advances stacks ServiceNow’s position to surpass its growth peers. ”

He said ServiceNow “gives investors a unique proposition on large-cap software stocks.”

Of the more than 7,000 professional analysts in the TipRanks database, Schwartz is ranked No. 14. He has been successful in rating stocks 72% of the time, and his picks have returned him an average of 51.4%.