Stocks that leave analysts dumbfounded are a rare breed indeed. Wall Street typically brims with strong buy ratings, but achieving almost unanimous acclaim is the equivalent of finding a pearl in an oyster. While the S&P 500 index harbors no such perfect gem, according to S&P Global Market Intelligence, a select few companies have attained a near-perfect consensus among the financial experts.
Only seven companies within the index boast a majority of buy ratings, a revelation straight from the horses’ mouth – S&P Global Market Intelligence. Expanding this quest to encompass the entirety of the S&P Composite 1500, the number blossoms to 17, or a still impressive 12 if we sidestep the ‘Magnificent 7.’ To earn a spot in this exclusive club, a stock must secure buy ratings from 75% of its analyst devotees. It’s a stringent club, as only the crème de la crème need apply.
Uber Technologies (UBER)
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Uber Technologies (NYSE:UBER) receives an impressive 90.2% buy rating from a tribe of 51 analysts scrutinizing its stock. With a dazzling target price of $90, signaling a 12.5% ascent from its current trading grounds, Uber seems like a ride to profits.
In the past year, investors who hitched a ride on the Uber train have more than doubled their investment, enjoying a robust 162% rise. But Uber isn’t merely about cars zipping through streets; it encompasses Uber Eats and freight services. These three arms, named Mobility, Delivery, and Freight, collectively rang in revenues of $19.93 billion, $12.20 billion, and $5.25 billion for the year 2023, respectively. The sum total of its transactions reached a staggering $37.38 billion, marking a 15% growth spurt from the previous year.
Despite this resounding success, a hiccup came in the form of a 17% slump in freight revenue, grappling with a tempestuous market. Consequently, the freight segment bled on an EBITDA basis over the past year. However, Uber’s overall business witnessed a robust upswing in 2023, with EBITDA catapulting by $618 million year-over-year, boasting an adjusted EBITDA margin of 3.4% compared to 2.2% in Q4 of 2022.
Roth Capital Partners’ analyst, Rohit Kolkarni, lauds Uber’s ambitious $7 billion share repurchase program, a symbol of confidence in the company’s proficiency to anticipate growth, amass substantial cash flows, and stave off incremental dilution.
Mastercard (MA)
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Mastercard (NYSE:MA) reigns supreme with an 87.5% buy rating from a battalion of 40 analysts. Sporting a target price of $510, forecasting a 6% leap from its current trading realm, Mastercard epitomizes payments prowess.
Past bouts of correction notwithstanding, Mastercard has rewarded loyal investors with a cushy 105% gain over the years. Notably, it has outshone its arch-rival, Visa (NYSE:V), by a significant 24 percentage points. In February, Mastercard orchestrated a dazzling partnership with MTN Group’s (OTCMKTS:MTNOY) fintech arm, birthing a mobile money ecosystem that spans across 13 African markets.
With over 1.3 billion denizens in Africa and a mere 48% owning bank accounts, MTN Group, a telecommunication giant, stands poised to marry customer allegiance with Mastercard’s payment tech, potentially revolutionizing the payments landscape in Africa.
Advanced Micro Devices (AMD)
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Advanced Micro Devices (NASDAQ:AMD) has garnered a hefty 78.0% buy rating from 50 industry analysts. With a target price of $195, a promising 8.3% above its present trading value, AMD beckons daring investors to the tech forefront.
In an alternate universe bereft of Nvidia (NASDAQ:NVDA), AMD’s 2024 performance would be the talk of the town, boasting over 30% gains for the year. Alas, Nvidia’s command over AI tech eclipses AMD’s shine, witnessing a monumental threefold surge in the past months.
CEO Lisa Su, undaunted by Nvidia’s lead, remains steadfast in AMD’s innovation pursuits. Despite playing second fiddle to the tech behemoth, Su stays committed to furnishing an AI toolkit for enterprise clientele. In a twist of fate, a Bloomberg report in February crowned Su as a billionaire, with a tidy net worth of $1.2 billion. Meanwhile, her distant kin, Jensen Huang of Nvidia fame, ascended to the 20th spot on the Bloomberg Billionaires Index, accumulating $79.7 billion, a staggering $35.6 billion windfall solely in 2024, second only to Meta Platforms’ Mark Zuckerberg.
Settling for the silver medal might sting, but when the gold belongs to Nvidia, AMD’s runner-up status isn’t all that gloomy after all.