May 22, 2022

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5 Stocks to Buy Now if You Believe in These Analyst Upgrades

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  • Target (TGT) — Gordon Haskett analyst Chuck Grom has raised his rating on the retailer and upped his price target to $300 from $255.
  • Kroger (KR) — BofA analyst Robert Ohmes revised his opinion on the stock from “neutral” to “buy,” raising the price target to $75 from $61.
  • Coupa Software (COUP) — Evercore ISI analyst Peter Levine raised the price target from $75 to $140 while upgrading from “in-line” to “outperform.”
  • Nio (NIO) — UBS analyst Paul Gong upgraded shares from “hold” to “buy,” with a price target of $32.
  • Welltower (WELL) — Scotiabank analyst Nicholas Yulico upped Welltower to “sector outperform” from “sector perform.”

Although the stock market is unpredictable and anyone investing can suffer losses, analyst upgrades provide useful insight into the best stocks to buy now. They suggest which stocks are low-risk and likely to rise.

Here are five of the most promising stocks that analysts have upgraded in the past few weeks. These stocks are still considered undervalued and are expected to see significant growth soon.

TGT Target $234.92
KR Kroger $57.86
COUP Coupa Software $105.35
NIO Nio $20.36
WELL Welltower $96.74

Target (TGT)

an image of bullseye the target (TGT) dog in a target store

Source: Robert Gregory Griffeth / Shutterstock.com

Target (NYSE:TGT) opened in 1962 and has 1,931 stores. The company offers a wide range of services, including retail, online shopping, e-commerce, food distribution and logistics.

Since the start of the year, though, things have not been looking up for Target. The company has not done too well alongside the rest of the retail sector.

However, Gordon Haskett analyst Chuck Grom has raised his rating on the retailer and revised his price target to $300 from $255. In December, the company’s shares were downgraded, with analysts citing concerns about sales growth sustainability and initiatives such as curbside pickup.

Grom now believes the company is holding up well, with remarkable consistency in both performance and sales. The analyst also notes a later spring/Easter shift lineup that could continue to see an uptick in performance.

The analyst predicts that Target shares will appreciate significantly as confidence begins to increase about the company’s model in the coming stages of the Covid-19 pandemic.

Kroger (KR)

A Kroger (KR) logo on a building.

Source: Jonathan Weiss / Shutterstock.com

Kroger (NYSE:KR) is a grocery store chain with more than 2,700 stores in 35 states. It is the largest supermarket chain in the United States and has been around since 1883.

Kroger has seen an increase in its online business as it started to offer online grocery shopping services in 2015.

Shares of the grocer gained handsomely when BofA analyst Robert Ohmes revised his opinion on the stock from “neutral” to “buy” on April 8, raising the price target to $75 from $61.

According to the new research note, consumer inflation is expected to stay high for the next few years. This means that Kroger should continue to see “significant EPS upside” as wages for U.S. employees have increased by 6%.

High inflation means that consumers are now doing more comparison shopping to find the best deals, which is a good sign for Kroger. This indicates their market share could be on the rise.

Coupa Software (COUP)

A photo of a person holding money while reading statistics on a page.

Source: Shutterstock

Coupa Software (NASDAQ:COUP) is a global technology platform that helps businesses, governments and not-for-profits track and manage their business spending. They use an integrated system of financial management tools that help them make better decisions about how they spend their money. They can quickly analyze spending trends in real-time to help with budgeting.

Coupa Software has been under pressure due to a general slowdown in the tech sector, leading to lower stock prices for other companies. The company has also done well, evidenced by its revenues: $541.6 million in 2021, which is an increase of 39% from the previous year.

Evercore ISI praised the company for its expansion and demonstrated its notable growth, describing it as having great long-term potential. Peter Levine raised the price target from $75 to $140 while upgrading from “in-line” to “outperform.” Sales cycles for industry verticals are back at pre-pandemic levels, and with pipelines at record heights, the analyst wrote that the company is in a great position.

Nio (NIO)

NIO store sign and customer in electric car store. NIO is a Chinese EV company

Source: Robert Way / Shutterstock.com

Nio (NYSE:NIO) is a Chinese company making waves in the industry since its inception in 2014. It has quickly become one of China’s most successful companies, and it is now considered one of the leading electric vehicle manufacturers worldwide.

In 2021, NIO delivered 91,429 vehicles and saw strong growth of 109.1% year-over-year. However, in the year thus far, there has been a slowdown in growth. As China has been dealing with a major coronavirus outbreak, the EV maker has halted car production, which will have a huge impact on deliveries. China has a strict zero-Covid-19 policy that it has implemented for quite some time now. This is a situation the company will have to manage.

Due to this slowdown, NIO stock has suffered. Therefore, UBS believes the time to strike is now. UBS said Nio’s shares are currently undervalued, and investors should buy up before their price goes back up. UBS Analyst Paul Gong upgraded shares from “hold” to “buy,” with a price target of $32.

Welltower (WELL)

WellTower (WELL) logo displayed on a website and magnified

Source: Shutterstock

Welltower (NYSE:WELL) invests in real estate and medical infrastructure, making them a great investment for wealth management or retirement. This company has a focuses on investing in hospitals and medical centers.

Scotiabank analyst Nicholas Yulico recently upped the health care REIT to “sector outperform” from “sector perform.”

According to the analyst, WELL is one company with a proven track record of investing in housing, and its prospects for growth are quite impressive. The annual FFO is expected to be over 17% from 2022 to 2023, which will beat analyst estimates.

The analyst forecasts over 500 basis points of yearly occupancy growth for the next few years. He also expects the REIT to report operating income of 30% and occupancy of 88% by 2023.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.