Leading off our list is grill maker Weber, which Goldman started coverage on with a Buy rating last week. Along with the bullish stance, Goldman analyst Kate McShane planted a US$22 price target on the shares, representing upside of about 33% from where they sit now.
With the trend of investing in homelife picking up pace, McShane thinks Weber is a “solid growth story.” The analyst also sees the company benefiting from consumer brand awareness and global growth tailwinds.
In 2020, the company posted revenue of US$1.5 billion with a 14% return on invested capital.
Weber shares spiked after their IPO earlier this month, but have fallen 17% since the initial run-up, providing a possible opportunity for contrarian traders.
Cloud computing technologist Workday saw Goldman recently raise its price target from US$300 to US$330 per share. In other words, Goldman analyst Kash Rangan sees upside of about 20% from where Workday currently trades.
Rangan also reiterated his Buy rating on the stock. In a research note to investors, he wrote that Workday is well positioned to take market share over the long haul.
In its recent Q2 results, Workday blew out expectations with revenue growth of 19%. The company also posted non-GAAP earnings of US$1.23 a share, well above the average analyst single-share estimate of 78 cents U.S.
Workday shares are up just 13% so far in 2021, versus 21% for the S&P 500.
Rounding out our list is cloud-based data platform Snowflake, which Goldman’s Rangan lifted his price target on from US$300 to US$340. Rangan’s projection represents 14% worth of upside for today’s buyers of Snowflake shares.
Rangan thinks Snowflake’s native cloud platform is ideally positioned to replace data warehousing services long term due to its scalability and elasticity. Rangan also highlighted the company’s “best in class” net revenue retention rate of 169% in the most recent quarter.
While Snowflake posted a wider-than-expected loss in Q2, revenue more than doubled from the year-ago period to US$272 million.
Snowflake shares are up 6% year to date, underperforming the S&P 500 by a wide margin, suggesting the stock could have plenty of room to run for the rest of 2021.
Go your own way?
There you have it: three newly upgraded stocks worth checking out.
Even if you don't agree with Goldman on these specific stock picks, your goal as an investor should always remain the same: seeking out attractive assets at discounted prices.
And, if individual stocks seem expensive, you can try a popular investing app that lets you buy fractional shares of big-name stocks to get a slice of their profits.
Or, if you're just starting out as an investor, it's not a bad idea to look into some low-stakes alternatives. One popular app lets you invest with just your "spare change."
Fine art as an investment
Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.
That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.
Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.
And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.
On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.
Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.
Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.