Retail investors typically rely on online information to begin selecting the next investments for their portfolios. However, there is a subtle way to align new capital with the trends Wall Street analysts are seeing right now. The benefit is that investors don’t have to spend the hours of in-depth analysis required to make stock selection decisions, but rather connect the dots behind recent analyst ratings.
To do this, investors must choose one reputable source, such as a specific analyst or investment bank. That’s why today’s focus is on three stocks that Bank of America Co. New York Stock Exchange: BAK analysts decided to upgrade the rating relatively consistently. There must be a broader underlying trend for them to support these three stocks at the same time.
By successfully connecting the dots and reconstructing what these analysts may be looking at, investors can tap into a goldmine of further investment ideas for the future. In this regard, such actions as Airbnb Inc. NASDAQ: ABNB, Hershey Company. New York Stock Exchange: HSYand even Dollar General Co. New York Stock Exchange: DG today included in Bank of America analysts’ recent incentive list.
Inflation and real estate prices boost Airbnb stock value
Even after the Federal Reserve’s (Fed) rate hike cycle, average home prices in the United States were still 32% higher than pre-COVID levels. The market has become so hot that even after entering a cycle of easing and rate cuts 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 5:19 PM ET)
- 52 week range
- $110.38
▼
$170.10
- P/E ratio
- 47.36
- Target price
- $139.48
This is why the mortgage market index is still at its 1996 low, meaning that falling yields have not yet had the desired effect on mortgage demand. This is good for Airbnb stock because of the flexibility and variety it offers to consumers looking to ride out the market.
By renting through “long stay” on the platform, consumers can avoid rising rental prices and wait for the market to offer them the best price for the home they want to buy. This trend is evident in the company’s key performance indicators (KPIs) as of the most recent quarter.
Over the past 12 months, nights and entertainment bookings have grown by 8%, driving further revenue growth for the platform and highlighting how attractive the business model is today. This growth helped Airbnb increase its free cash flow to $1.4 billion in the quarter, and it is projected to continue growing.
Knowing this, investors shouldn’t be surprised to see Bank of America analysts set a $159 price target for the stock, up from their previous estimate of $154. Since this new estimate was made as recently as December 2024, investors have a fresh view of the stock’s potential upside of 18.5% from where the stock is trading today.
Inflation Pressure Could Help Hershey Stock’s Defensive Nature
Hershey offers affordable products in the consumer staples sector, and this defensive nature is keeping most of the price action away from the stock as there are more popular stocks in the market today that require more attention. However, Bank of America analysts decided to express their bullish view on the title as of December 2024.
Hershey today
(As of 12/24/2024 5:19 PM ET)
- 52 week range
- $166.69
▼
$211.92
- Dividend yield
- 3.21%
- P/E ratio
- 19.64
- Target price
- $184.61
With a $180 share price, these analysts see 6% upside from today’s price, which could be on the low end given that a potential takeover buyer is on the block wanting to buy Hershey for much more than $180 per share . .
The first offer for Hershey stock did not impress management because it was too cheap. This article will tell investors about a takeover bid and where a better price might be. In short, it’s closer to the stock’s all-time high of roughly $275.
Bears know this could be the next big thing for Hershey stock, which is why investors may see the company’s short interest drop 5.7% in just the past month. This is a sign of bearish capitulation in the face of approaching bullish factors in Hershey.
Dollar General Stocks: Double-Digit Growth Opportunity
Investors can now see a trend here, with inflation in the real estate sector pushing up more growth and growth potential for Airbnb, and how that inflation is leaving defensive stocks (like Hershey stock) on the back burner. This theme extends to maximizing the value proposition for consumers in an environment of higher inflation.
Dollar General today
Dollar General
(As of 12/24/2024 5:19 PM ET)
- 52 week range
- $72.12
▼
$168.07
- Dividend yield
- 3.16%
- P/E ratio
- 12.30
- Target price
- $98.27
Bank of America analysts have a December 2024 price target for Dollar General shares of $95, implying an upside of 24.3% from the current price. However, these analysts weren’t the only ones expressing their bullish view, as analysts at Principal Financial Group recently increased their stakes in the company.
The 2.6% gain through December 2024 brought the group’s position in Dollar General shares to a high of $21 million, another sign of bullish optimism that investors should consider moving forward.
This is something you should hear before you consider Airbnb.
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