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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.