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Summary

  • Brokers gave UnitedHealth a ‘Strong Buy’ rating, with a price target of US$ 594.88 as on April 28, 2023.
  • Lamb Weston bagged a ‘Buy’ rating from brokers with a consensus price target of US$ 120.50 for the stock.
  • Transportation pioneer Fedex also received a ‘buy’ rating from brokers, with a consensus price target of US$ 252.

The fourth quarter of 2022 turned out to be a good one for the market, with the S&P 500 gaining 7.5% during that period. With the economy slowing down in the first quarter of 2023, many corporations have taken a hit to their profits.

Rising interest rates, threats posed by a looming recession and the recent collapse of banking entities such as the Silicon Valley Bank have raised concerns.

Despite these uncertainties, certain stocks have obtained a ‘buy’ rating from brokers as they believe these stocks have the potential to move higher from current levels. Here are three such stocks on which brokers maintain a ‘Buy’ rating.

UnitedHealth Group Inc. (NYSE: UNH)

UnitedHealth Group provides healthcare insurance services, among other services, such as consulting. The company is also actively involved in providing managed care services, alongside being a leader in the insurance plans segment.

Brokers have a ‘Strong Buy’ recommendation for the stock, with the consensus mean price target on the stock being US$ 594.88 as per EODHD/Others. This target price shows an upside potential of 21.29% over its closing price of US$ 490.47 on April 27, 2023.

Image source: ©2022 Kalkine®; Data source: EODHD/Others

As per data available on Refinitv, eight analysts have a 'Strong Buy' rating for UNH, while fifteen analysts have a 'Buy' rating, and three analysts have a 'Hold' rating. The data also suggests that none of the analysts has given the stock a 'Sell' or 'Strong Sell' rating.

UnitedHealth reported a total revenue of US$ 91.13 billion during the first quarter of March 2023. The company’s EBITDA during the period was US$ 9.056 billion. Operating cash flow of the company stood at US$ 16.327 billion during the March 2023 quarter.

The stock closed at US$ 490.47 on April 27, 2023.

Lamb Weston Holdings Inc. (NYSE: LW)

Lamb Weston is a premier producer of frozen potato products like French fries, diced potatoes, tater tots, hash brown and chips. The company obtained 63% of its fiscal revenue during 2022 from the United States, while the remaining revenues came from Europe, Canada, Japan, and other countries.

Analysts have given the LW stock a ‘Buy’ rating, with a consensus target price of US$ 120.50, which is 7.97% higher than its closing price of US$ 111.60 on April 27, 2023. As per data available on EODHD/Others, Stifel Nicolaus and Company reviewed the stock on April 25, 2023 and maintained its ‘Hold’ recommendation. According to the broker, the price target for UNH was US$ 115, indicating an upside potential of 3.05% over its closing price of US$ 111.60 on April 27, 2023.

Image Source: EODHD/Others

As per data available on EODHD/Others, two analysts have given the stock a ‘Strong Buy’ rating, four analysts have given it a ‘Buy’ rating and three analysts have given it a ‘Hold’ rating. None of the analysts, however, have given the stock a ‘Sell’ or ‘Strong Sell’ rating.

Fedex Corp (NYSE: FDX)

Fedex is a well-recognized transportation and e-commerce business with majority of its revenue coming from its express division, followed by ground and freight divisions. The company is the world's largest express package provider, with a total revenue of US$ 22.169 billion during the February 2023 quarter. This was 11.38% higher than the revenue earned in the year-ago quarter.

According to data available on EODHD/Others, brokers recommend buying the stock. The consensus price target for the stock stands at US$ 252, which is 11.53% higher than its closing price of US$ 225.94 on April 27, 2023.

Raymond James gave an ‘Outperform’ rating to the stock on April 06, 2023, with a target price of US$ 285, which marks an upside potential of 26.14% over its closing price of US$ 225.94 on April 27, 2023.

Stifel Nicolaus and Company also suggests buying the stock, as the broker updated its price target to US$ 264 on April 5, 2023. This marks an upside potential of 16.85% on the FDX stock over its closing price of US$ 225.94 on April 27, 2023.

Disclaimer

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the article, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

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