3 Upgrades You Can Buy Right Now

Upgrades Will Drive The Next Wave Of Buying

The market has entered a correction there is no doubt about it. The tech-heavy NASDAQ Composite is down nearly 10% over the past few trading days with the broad market and blue chips not far behind. Truth be told, it’s about time we had a correction. The S&P 500 (NYSEARCA:SPY) is up more than 50% since hitting the bottom and ripe for profit-taking and rotation if nothing else.

One reason the rebound was so vigorous is that Q2 results were much better than expected relative to analysts’ projections. That situation led to a historic market melt-up that is yet to play-out despite this correction because the analyst’s projections are still too low. With the 2Q earnings cycle all but over, the upgrades for Q3 and calendar 2020 have begun to roll in and that is a signal to buy certain names in certain sectors.

Camping World Down But The Analysts Are Warming Up

Camping World (NYSE:CWH) shares hit a high in early August and have since pulled back. The move came following the 2Q earrings report which detailed excellent results but not enough to keep the market happy. Since then, the stock has begun to put in a bottom on a rising tide of good news that could easily lift share prices back to the previous high if not higher.

Not one but thee analysts have come out with positive upgrades for the stock over the past month. They all cite scale, market share growth, secular trends, and recent insider buying among their arguments. The company is seen as well-positioned in a fractured market with the competitive advantages of buying-power and product-range to drive and support growth.

The consensus price target for the stock is near the $38 mark or about 15% above current trading levels. Even with the three new bullish calls more than half of the analysts rate the stock at hold or neutral so I expect to see more upgrades in the coming weeks. On a technical basis, the stock is showing signs that a rebound is already forming and it looks like it could be a strong one.

Foot Locker Has Tailwinds

Foot Locker (NYSE:FL) surprised investors with better than expected results and shares have been moving higher ever since. The 2Q results including a strong showing in the eCommerce category that points to continued success in the coming quarters. The news that really got investors’ attention, mine at least, was the decision to reinstate the dividend if at a lower level than before. The move was a much-needed sign of strength that has the stock trading at a three-month high.

Now, with a rally underway, Foot Locker has started getting the upgrades I predicted would come and help drive share prices even higher. The latest comes from Goldman Sachs. They say Foot Locker is a “competitively positioned retailer with several enduring tailwinds”. 15 of the analysts are still neutral or bearish so there is still quite a bit of fuel left in this price catalyst. The next hurdle for the stock will be the $35.25 level or about 7.6% above the current price action, if that is broken this stock would easily move up to the $40 or $42 range.

Disney Is A Streaming Powerhouse

The Walt Disney Company (NYSE:DIS) got a much-needed shot of good news today when analysts at Deutsche Bank upgraded the stock from hold to buy. They say the company has ended the “land-grab” phase of its digital strategy and now well-positioned to become a global streaming entertainment leader. Deutsche Bank assigned a price target of $163 for the Wall Street high and shares are responding because of it.

The news has shares trading just below a key resistance point that appears to be breaking down. A move above this level, near $136, could lead to $150 in the near-term at least. Most of the analysts are already bullish on the stock but there are enough on the sidelines to drive price action when they turn bullish.

Upgrades Will Drive The Next Wave Of Buying