Continued high uncertainty on the stock markets – Experts are now recommending these five US stocks

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• Market environment still characterized by uncertainty
• Wall Street pundits highlight promising companies
• Texas Instruments, Juniper Networks, Timken, Stride and F5 convince

The market environment is still difficult. The ongoing war in Ukraine, rising interest rates, skyrocketing energy prices and high inflation are causing great uncertainty on the stock exchanges. However, even in this difficult market environment, investors with a long-term orientation can find companies that stand up to the uncertainty and convince with a wide variety of qualities. The news portal CNBC used TipRanks data to select five stocks recommended by Wall Street analysts.

Texas Instruments stock

The US chip company Texas Instruments recently reported the results of the third quarter of 2022. The company posted sales growth of 13 percent to US$ 5.2 billion, while profits increased by 18 percent to US$ 2.3 billion -dollars too. Both were above expectations. However, what raised eyebrows among investors and analysts alike was the semiconductor maker’s cautious outlook. With reference to the currently gloomy economic environment, TI issued a pessimistic forecast for the fourth quarter of 2022, which was significantly below the preliminary estimates. This not only put pressure on Texas Instruments stock in response to the balance sheet, but also caused discounts for other chip companies.

Susquehanna expert Christopher Rolland has observed that the weak economic environment has meanwhile also reached the industrial sector. Still, he thinks the TI paper is a good long-term investment because of the sustainable competitive advantage that has come from scaling, which more than outweighs the short-term issues. According to CNBC, Rolland said, “The scale advantage helps provide unmatched analog product breadth (a 100,000-part catalog), comprehensive service and sales support, and manufacturing expertise.” The analyst reduced his TI price target from 215 to 195 US dollars, but maintained his buy recommendation.

Juniper Networks stock

Another company popular with analysts is network and security solutions provider Juniper Networks. Needham expert Alex Henderson was convinced of the strong quarter that the tech company recently recorded. “Juniper delivered a strong quarter, provided healthy but still supply-constrained guidance and showed confidence in its short, medium and long-term forecasts,” CNBC quoted him as saying from the TipRanks database. In the third quarter of 2022, sales rose to $1.4 billion after $1.19 billion in the previous year, and net profit increased to $121.5 million (previous year: $88.9 million).

In addition, the pipeline at the US group is still well filled and should enable further growth potential in the next two to three years. According to Henderson’s assessment, sales growth of ten percent is conceivable in this time frame. A “strong cash flow, an improving product line and an expansion into the cloud and enterprise markets” would also contribute to the stock’s positive rating.

Timken stock

According to its own statements, the US company Timken manufactures “bearings and mechanical power transmission products” and only recently made a positive impression on the market when it beat market expectations with its latest quarterly results. Third-quarter sales rose 9.6 percent to $1.14 billion, organically up 13.6 percent year-on-year. Profit, on the other hand, fell slightly to US$87 million (previous year US$88.1 million), which is still a good result given the supply chain problems and increasing costs in 2022.

Oppenheimer analyst Bryan Blair responded to the numbers by reiterating his buy rating and price target of $84. “By combining Timken’s operational momentum, backlog, solid end market values ​​and improved price/cost ratio, we believe in the team’s belief in achieving the revised 2022 EPS guidance and driving continued earnings growth next year,” said Blair.

Stride Stock

Online education provider Stride reported revenue growth of 6.24 percent to $425.2 million in its first fiscal quarter of 2023, which ended September 30, 2022, but net loss widened to $5.9 million $22.7 million. Analysts had previously only assumed a minus of 6.1 million US dollars. Investors responded to the quarterly figures with massive sales, and Stride shares temporarily fell by 26 percent to $34.27 in response to the figures.

However, as CNBC writes with reference to TipRanks, Stride shares are now oversold, making them attractive to investors again. Barrington Research’s Alexander Paris took a closer look at the quarterly report and, despite some of the challenges the company faces, he still believes in the learning specialist’s ability to overcome them “through ongoing efficiency efforts.” As part of the balance sheet presentation, Stride itself once again confirmed that it was on the right track to achieving the goals set in 2020 for the 2025 fiscal year. Paris therefore repeated its buy rating and set the price target at 50 US dollars.

F5 stock

The latest company to be singled out for praise by Wall Street pundits is multi-cloud security and application delivery provider F5. The company is one of Needham analyst Alex Henderson’s favorites this season. F5 also recently reported the results of the fourth quarter of 2022 of its fiscal year, which ended at the end of September. Sales in the quarter increased by three percent to 700 million US dollars. Profits fell from 111 million US dollars in the previous year to now 89 million US dollars. With the results, the company was above the analysts’ preliminary estimates, even if there was a slowdown in software sales.

For fiscal 2023, F5 forecasts revenue growth of 9% to 11%, which somewhat allays Henderson’s worries given what he sees as an unfavorable revenue mix. He accordingly raised his own revenue and EPS estimates. Nonetheless, it lowered its price target from $303 to $200 while maintaining a Buy rating. He remains bullish on F5 stock, noting the accelerated revenue growth, strong balance sheet with $9.05 per share in cash and $1.2 billion in authorized share repurchases.

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