We pay attention to the analysts' community rather than to any one individual's opinion. The more analysts on a market, the deeper it is. And when an analyst's sentiment shifts positive or negative, price movement may be affected. That’s why we are interested in Palo Alto Networks, Nvidia, and Google. They are the three most upgraded stocks in 2021, and we shouldn't be surprised. They encompass the bulk of today's Internet-driven world, and their enterprises are powered by powerful tailwinds. These are some of the finest high-momentum stocks to buy if you're searching for one with a bright future.
Palo Alto Networks - 2021 Most Upgraded Stock
Palo Alto Networks (NYSE: PANW) is the most upgraded stock of 2021, with 96 upgrades (largely in the form of price target hikes) from 31 analysts.Surprisingly, the consensus tone is still only a weak Buy, but there are two factors to consider. The first is that sentiment has been improving over the past year and the second is the consensus price target. Over the past 12 months, the consensus price target of $576 is up 80% and 13% in the last 90 days and trending higher. Despite the consensus price target only expecting about 3.5% of upside for the stock, the high price target of $675 is predicting a more robust 21%.
Palo Alto Networks will next provide earnings on February 22, 2022, and we anticipate the consensus expectations to improve between now and then. The current consensus is expecting sequential growth but at a mediocre rate. On a year-over-year basis, the forecast is for a slow down of around 22%, which we don't believe is coming. The analysts are, in our opinion, underestimating revenue and earnings growth.
Nvidia - Most Upgraded Chip Stock
Nvidia (NASDAQ: NVDA) is the second most upgraded stock in 2021 and the most upgraded chip stock which says a lot. Nvidia is at the center of several significant trends, including graphics, data centers, gaming, and to a lesser degree cryptocurrency. The chip industry is exploding, and Nvidia is at its heart. Last year, Nvidia received 95 upgrades and/or price target hikes from 32 analysts, resulting in a strong Buy consensus. The consensus price target of $332 is about 13% greater than the current price action, and has gained 52% in the previous 90 days .The stock's extremely high price target of $400 has risen in the past 90 days, suggesting a potential 36 percent gain.
On February 14, 2022, Nvidia will release earnings and is anticipated to post strong results. $7.42 billion for a sequential increase of 4.5 percent, and 48% YOY is the consensus revenue estimate. This may be an underestimation since demand has been strong in all categories, with no indication of slackening.
Alphabet - Third Most-Upgraded Stock
Google (NASDAQ: GOOGL), actually Alphabet, is the third most upgraded stock for 2021 and one anticipated to move higher in 2022. A total of 40 analysts have predicted 93 upgrades or price target increases for the stock, resulting in a consensus of firm Buy. The consensus price target of $3270 is almost 13% above the current price action and in the last 12 months has risen more than 80%. In early December 2021, UBS Group set the lofty price target of $3915. Google is set to report earnings on February 3, 2021, and is anticipated to have strong sequential and year-over-year growth. The analyst's consensus predicts a 25% sequential increase and a high chance of being too low.