The stock market is showing signs of extreme volatility. When the Federal Reserve raised interest rates by 3/4 of a percentage point, investors were already hurting from huge stock losses. Although the central bank made it evident that it was taking steps to combat inflation, its actions fueled fears of a coming recession.
Despite the volatile stock market, prominent Wall Street professionals are choosing their top picks.
Here are five stocks to look out for:
Apple (AAPL) is one of the largest global firms, with a market capitalization of more than $2 trillion. It has all the resources it needs to get through the tough times and continue to thrive over time. Despite its scale, Apple is not immune to the economic problems that are plaguing the country.
Due to chronic component supply shortages, which have been exacerbated by the lockdowns in China, the iPhone maker forecasts a sales impact of up to $8 billion in the quarter that ends in June. Apple also expects revenue difficulties as a result of the suspension of shipments to Russia.
NetApp (NTAP), a business storage and data management solution provider, is also one of the favorites. The company’s stock has been affected by the current industry failures, with its shares down around 30% year to date.
Despite the challenges, NetApp is demonstrating exceptional execution capabilities, and the company has maintained a healthy balance sheet and a net cash position. This software titan has been able to keep up with its dividend payments thanks to its robust balance sheet.
Cloud software giant Oracle (ORCL) is one of the few IT businesses that has managed to stay afloat despite larger market challenges. Its optimistic quarterly results were a glimpse of hope in the midst of the season’s disastrous news. Furthermore, its current-quarter projection, which incorporates Cerner’s acquired assets, is optimistic.
IHS Holding (IHS), which develops, operates, and owns shared telecommunications infrastructure, is the next stock on top analysts’ radar, veering slightly from the core technology sector. With its developing international reach, the current scenario has rendered dollar availability limited, and IHS shares have fallen about 28% so far this year.
Nonetheless, the company showed good quarterly results last month, urging RBC Capital Markets analyst Jonathan Atkin to investigate the company’s finances and achievements. Atkin said, “low churn profile, long-duration contracts, and attractive annuity-like cash flow streams.”
Bank of America (BAC) has lost nearly 30% of its value this year. Despite this, the banking giant reaps the benefits of the current high-interest rate environment. Higher interest rates and loan growth, according to the bank’s CEO Brian Moynihan, should boost net interest income significantly in the near future.
RBC Capital analyst Gerard Cassidy really seemed to agree in a new research study. “As a result of the expected increases in short-term interest rates, we increased our net interest income estimates, which were more than offset in 2022 by lower than expected investment banking revenues but only partially offset in 2023,” he said.