How Much Pain Is Already Priced In? Analysts Upgrade or Downgrade American Express, Dow, Roblox and More

view original post

Markets were somewhat mixed as the week came to a close. The S&P 500 and Dow Jones industrials each saw a slight loss on the day, while the Nasdaq had a handy gain, up over 0.5%. Despite this small bounce, each of the major averages is on track for posting a fairly sizable loss for the week.

On this day last week, the consumer price index saw its highest print in over four decades. This historic reading necessitated action by the Federal Reserve, which we saw Wednesday when the central bank hiked interest rates by 75 basis points, its first hike of this size since 1994.

As interest rates increase, investors can expect to see an inverse reaction from equities. Currently it does not appear that the Fed is done hiking rates this summer, so there may be more pain for investors down the road. Also, the question remains: how much of these moves by the Fed has been priced into markets already?

24/7 Wall St. is reviewing additional analyst calls seen on Friday. We have included the latest call on each stock, as well as a recent trading history and the consensus targets among analysts. Note that analyst calls seen earlier in the day were on Amgen, AutoZone, Boeing, Dollar General, Etsy, FedEx and more.

American Eagle Outfitters Inc. (NYSE: AEO): B. Riley Securities downgraded the stock to Neutral from Buy and cut the $22 price target to $13. The 52-week trading range is $11.43 to $38.99, and shares traded above $11 apiece on Friday.

American Express Co. (NYSE: AXP): Robert Baird upgraded the shares from Neutral to Outperform with a $175 price target. The 52-week trading range is $136.49 to $199.55, and shares were trading near $139 on Friday.

Capital One Financial Corp. (NYSE: COF): Robert Baird also upgraded this one to Outperform from Neutral, and it has a $145 price target. The 52-week range is $98.54 to $177.95. Shares traded near $104 apiece on Friday.

CF Industries Holdings Inc. (NYSE: CF): Citigroup’s downgrade to Neutral from Buy included a price target cut to $99 from $123. The stock traded near $89 on Friday, in a 52-week range of $43.19 to $113.49.

Dow Inc. (NYSE: DOW): Citigroup lowered its Buy rating to Neutral rating and cut the $82 price target to $60. The shares traded near $55 on Friday. The 52-week trading range is $52.07 to $71.86.

NextEra Energy Partners L.P. (NYSE: NEP): RBC Capital Markets upgraded it to Outperform from Sector Perform, and the firm raised the $86 price target to $89. The stock traded near $69 on Friday. The 52-week trading range is $61.31 to $88.80.

Roblox Corp. (NYSE: RBLX): Truist downgraded the stock to Hold from Buy and cut the price target to $29 from $36. The 52-week trading range is $21.65 to $141.60, and shares were changing hands at around $25 on Friday.

Urban Outfitters Inc. (NASDAQ: URBN): The B. Riley Securities downgrade was to Neutral from Buy, and the price target was cut to $23 from $35. Shares were trading near $20, in a 52-week range is $17.81 to $42.10.

Proper asset allocation should always include some holdings of precious metals. Seven top BofA Securities gold stock picks pay quite respectable dividends and look like great ideas now for worried investors.

See which key analyst expects big things from American Express and three other top financial stocks.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.