by There nonetheless are loads of stock-buying alternatives as earnings stories proceed to roll out, in line with Bank of America analysts. The agency is recommending a slew of corporations that traders ought to personal prematurely of the corporate’s quarterly outcomes. CNBC Pro combed by means of Bank of America’s current analysis to seek out probably the most enticing stocks which are well-positoned ahead of their stories. They embody: Grab , Urban Outfitters, Block, SolarEdge and Fox. Fox Buy shares of the “greatest positioned” firm in media, analyst Jessica Reif Ehrlich mentioned lately about Fox . The firm is scheduled to report earnings in early February. Fox has the right combination of content material to “drive relative outperformance vs. the market,” mentioned Reif Ehrlich, in a current observe to purchasers. She added, its information and sports activities programming are a “must-have” combine for some shoppers. In addition, Reif Ehrlich mentioned she likes the corporate’s strong stability sheet and known as its direct-to-consumer technique “measured.” The agency did admit that Fox isn’t completely resistant to advert market pressures, however mentioned it has the chops to climate the storm. “We anticipate FOX’s F2Q23E will mirror the resiliency of Fox’s portfolio but additionally present some indicators of the softening macro setting,” she mentioned. Still, with shares down 9% over the previous 52 weeks and important free-cash circulation era, the inventory stays most engaging, Reif Ehrlich wrote. Grab Holdings The Singapore-based tech firm was lately upgraded to purchase from impartial by analyst Sachin Salgaonkar. Shares of Grab, which affords deliveries, mobility and monetary providers by means of a cell app, are down 35% during the last 12 months. But Bank of America mentioned the danger/reward is popping extra “favorable.” “We discover Grab nicely positioned to stability income development with profitability in each its core companies— supply & mobility,” Salgaonkar mentioned. Grab can also be seeing a discount in competitors and its administration is keenly targeted on value controls, he mentioned. “We additionally consider that Grab’s super-app provides it a aggressive moat over friends and the ecosystem helps unlock synergies throughout its 4 divisions,” he wrote. The stability sheet can also be strong and Salgaonkar expects EBITDA profitability by 2025. The firm is predicted to report its earnings in mid-February. SolarEdge The photo voltaic merchandise firm is firing on all cylinders, in line with analyst Julien Dumoulin-Smith. “Expecting beats throughout the board in 4Q22,” he mentioned ahead of SolarEdge’s quarterly earnings report in mid-February. Dumoulin-Smith mentioned the inventory is within the “proper place on the proper time,” and raised his worth goal to $382 per share from $367 earlier this week. “Into 4Q22, now we have a Buy score on SolarEdge Technologies, which we predict seems poised to profit from the macro setting, vs. sustained headwinds all through 2022,” he mentioned. The agency mentioned SolarEdge is clearly a beneficiary of the Inflation Reduction Act , but it surely additionally advantages from a stronger euro because it affords shoppers extra pricing energy. “The restoration in EUR/USD modestly advantages SEDG’s topline, leading to a ~$20 mn income beat,” he added. Shares are up greater than 46% during the last 12 months, however Dumoulin-Smith’s increased worth goal suggests there’s nonetheless room to run. “As tailwinds and structural enhancements compound, it appears to us 4Q22 is a very enticing entry level for traders, now that SEDG has visibility into basic restoration,” he wrote. Block The pandemic in addition to new product introductions have led SQ’s estimated TAM to extend from $60B (Square solely) in 2017 to $190B in 2022. We keep our Buy score on account of: 1) Cash App nonetheless has an extended runway for development 2) Square continues to achieve traction upmarket and internationally, 3) SQ doesn’t get sufficient credit score for continued opex self-discipline and has acknowledged its intention to stay disciplined in ’23, and 4) crypto and BNPL collectively represented solely 12% of gross revenue in 3Q22. Fox “We anticipate FOX’s F2Q23E will mirror the resiliency of Fox’s portfolio but additionally present some indicators of the softening macro setting. … .While Fox’s assortment of sports activities & information property ought to drive relative outperformance vs. market, Fox isn’t utterly resistant to the macro pressures within the promoting market. … .We stay bullish on Fox as we consider it’s: one of the best positioned media firm to profit from sports activities betting, has a extra measured DTC technique, is an proprietor of must-have information and sports activities Grab Holdings ” We improve Grab to Buy from Neutral as we see risk-reward turning extra favorable. Thesis: 1) We discover Grab nicely positioned to stability income development with profitability in each its core companies – supply & mobility. … .We additionally consider that Grab’s super-app provides it a aggressive moat overs friends and the ecosystem helps unlock synergies throughout its 4 divisions.” Urban Outfitters “Well positioned into F24 with higher skill to chase. We reiterate our Buy score on Urban Outfitters given our view that it’s nicely positioned with cleaner stock into F24 (C23), now that its agile provide chain is normalized. … .Urban is one of probably the most interesting development tales in specialty retail, in our opinion. Its three confirmed ideas every have room for margin enlargement and its merchandise are differentiated and compelling.” SolarEdge “Expecting beats throughout the board in 4Q22. … .Right place on the proper time + structural advantages. … .Into 4Q22, now we have a Buy score on SolarEdge, which we predict seems poised to profit from the macro setting, vs. sustained headwinds all through 2022. … .The restoration in EUR/USD modestly advantages SEDG’s topline, leading to a ~$20 mn income beat. … .As tailwinds & structural enhancements compound, it appears to us 4Q22 is a very enticing entry level for traders, now that SEDG has visibility into basic restoration.”
