It’s always a good idea to track analyst upgrades.
Often, upgrades and price revisions are influenced by 1) company fundamentals, such as financial health, future growth, and even meetings with management; 2) industry and market trends, including specific market conditions and economics; 3) earnings and financial data, including earnings reports that came in better than expected, or competitive analysis of a competitor, and guidance; 4) or, they may be piling into a stock based on other firms.
But never rely solely on upgrades to buy. Instead, pay attention to what’s happening technically and fundamentally. The last thing you want to do is buy into a recently upgraded, but overvalued stock. That’s a great way to lose money.
Here are some of the top, most recent upgrades you may want to take a look at.
Amazon (AMZN)
JPMorgan just reiterated its position that Amazon (AMZN) is a “best idea.”
“We believe AMZN sentiment remains fundamentally bullish supported by improving GenAI positioning, potential for 2H AWS growth pick-up, & N. America OI margin expansion. However, AMZN has the most direct impact to tariffs & macro slowdown.”
After catching support at $161.38, the e-commerce giant is just starting to pivot higher. Last trading at $179.90, we’d like to see it retest $206 again shortly.
Newmont (NEM)
Analysts at UBS just upgraded NEM to a buy rating with a price target of $60. Raymond James raised its price target on NEM to $64 from $54 with an outperform rating. RBC Capital raised its price target on NEM to $52 from $51 with a sector perform rating.
Since bottoming out at around $43, NEM raced to a recent high of $54.67. From here, if the stock can break above $58 resistance, we’d like to see it test $65 a share – especially with gold prices now well above $3,000 with trade war tensions.
L3 Harris (LHX)
Goldman Sachs just upgraded LHX to a buy rating, noting that its valuation is compelling.
“Upgrade LHX to Buy from Sell: L3Harris could be well positioned in a higher defense spending environment, given its exposure to faster growing parts of the budget.”
After finding strong support at around $195 a share, LHX is now challenging overhead resistance at $218.50. If it can break above this price point, it could potentially retest $227. If it fails at this point, it could potentially drop back to about $195 worst case.