These Are The Most Upgraded Stocks From Q1

Key Points

• CrowdStrike retains its leadership position as the most upgraded stock in March.
• Micron emerges as a rising star with the potential to double in value over the next year.
• Target aims for the bullseye and will pivot back to growth at the end of the fiscal year. 

It is important to note where the big money flows, with Q1 rapidly drawing to a close. The big money, which, in this case, is represented by analysts and their following, continues to flow into blue-chip tech and AI. That said, the analysts' activity in March is telling. While one familiar name is on the list, two rising stars are on their way up the rankings and provide opportunities for investors. These are the most upgraded stocks from March, and they all have a double-digit upside potential

CrowdStrike Is the Most-Loved By the Analysts 

CrowdStrike NASDAQ: CRWD is not a newcomer to Marketbeat.com’s list of Most Upgraded Stocks. The stock has been ranked prominently over the past twelve months, ranking #3 for the past year, #3 in Q1 and #1 in March. The reason is simple: the company’s one-platform approach to cloud operations and security has appeal and utility for businesses moving to the cloud and seeking to maximize its effectiveness.

The utility is measured in revenue growth and leverage driven by the penetration of existing clients. Among the Q4 earnings release highlights are outperformance and guidance above the broad consensus. 

Analysts' activity in CRWD is robust in March. Marketbeat.com tracks thirty-three revisions from thirty-eight analysts, and all of them are positive. The sentiment held firm at Moderate Buy, but the price target jumped 43% month-to-month and is leading the market. The current consensus assumes a 15% upside and a new high, while the new high target adds another $60 or 16%.

Takeaways from the chatter include impressive deal volume for this best-in-class platform. Business growth is progressing faster than anticipated with better-than-expected profitability.

The price action in CrowdStrike broke to a new high ahead of the earnings release and confirmed support at a critical level following it. Now, the market is consolidating and forming a Bullish Flag pattern that suggests the trend will continue. Because the market is led by results as much as analysts, it could easily surpass the consensus on its way toward the high end of the expected range. 

Micron Is a Rising Star in AI

Micron NASDAQ: MU was the number 2 most upgraded stock in March because the company reached a crucial pivot, and its business was better than expected. Takeaways from the FQ2 release include normalized end markets compounded by mounting demand for AI. Micron is not positioned for the data center and accelerator market but is well-positioned for the long-term embedding of AI into our devices, mobile units, and the IoT.

The guidance was also strong and suggested NVIDIA-like strength will continue in 2024 and next year. 

Micron analysts were wowed by the news and issued twenty-one revisions within the first week. One is a reiterated rating but solid at Buy with an above-consensus price target; the remainder includes two upgrades, and all come with a price target increase. The consensus target is up 25% at the end of March and heading higher; it implies an 8% upside, but the more significant detail is recent price action. Micron’s stock surged above the DotCom peak, setting it up to double over the next several quarters to two years. 

Target Gets Its Mojo Back

Target NYSE: TGT is not out of the weeds by a long shot, but the business is stabilizing, and the margin is solid. The latest results don’t suggest strength but point to a pivot back to growth by the end of the fiscal year into the next fiscal year. Between then and now, the company will work on its financial position, invest in the future, and pay dividends. The reliable payment is worth 2.6% in yield at roughly 50% of the earnings, and the analysts are buying into the retailer's turnaround story. 

Marketbeat.com tracks twenty revisions from twenty-seven analysts in March, enough to rank it in the 3rd position. The sentiment improved from Hold to Moderate Buy and the price target by 15%. At the end of March, the consensus is near $179, with many fresh targets ranging from $180 to $210.