Many investors are familiar with price targets, as they represent analysts’ expectations of a stock’s future price.
Of course, analysts interpret many factors, including fundamental and technical, when calculating these levels.
In addition, price targets can be helpful for investors, helping to provide a more structured trade with pre-determined exit levels. However, it’s critical to remember that not all stocks reach analysts’ forecasted levels.
Three stocks – Ulta Beauty (ULTA - Free Report) , Carnival (CCL - Free Report) , and Occidental Petroleum (OXY - Free Report) – have all recently received price target upgrades. Below is a chart illustrating the performance of all three stocks in 2023, with the S&P 500 blended in as a benchmark.
It raises a valid question – why have analysts raised their expectations? Let’s take a closer look.
Occidental Petroleum
Occidental Petroleumis an integrated oil and gas company with significant exploration and production exposure.
Recently, TD Cowen moved their price target for OXY shares up to $70 per share from $63 while upgrading the stock to outperform.
The company’s cash-generating abilities were amplified during elevated energy prices, as seen in the chart below. Over the last twelve months, Occidental Petroleum has generated nearly $13 billion in free cash flow.
Just on February 27th, the company increased its annual dividend payout to $0.72 per share ($0.18 per share quarterly), reflecting a nearly 40% increase from the previous annual rate of $0.52 per share.
Ulta Beauty
Ulta Beauty is a leading beauty retailer in the United States, with a vast product catalog that includes cosmetics, fragrances, skincare, hair care, bath and body products, and more. Ulta Beauty’s price target was raised to $615 per share from $610 by Piper Sandler.
The company’s earnings outlook has improved across all timeframes over the last 60 days, landing it into a Zacks Rank #2 (Buy).
Impressive quarterly results undoubtedly aided in the price target upgrade; ULTA has exceeded the Zacks Consensus EPS Estimate by double-digit percentages in nine consecutive quarters.
Within the most recent quarterly print, the beauty retailer delivered a 17% earnings beat and reported revenue 6.2% ahead of expectations.
Carnival
Carnival, a cruise and vacation company, is the world's leading leisure travel firm, carrying nearly half the global cruise guests. Carnival’s price target was upgraded to $13 per share from $12 by Barclays.
A recovery in travel demand has benefited the company, with CCL exceeding earnings estimates in back-to-back quarters after a string of negative surprises.
In its latest release on March 27th, the company registered an 11.3% EPS beat and reported revenue nearly 2% ahead of expectations.
The recovery in travel demand is further illustrated by the company’s strong forecasted growth rates; earnings are forecasted to soar nearly 100% in its current fiscal year (FY23) and a further 570% in FY24.
Bottom Line
Price targets are commonly discussed in the market, giving investors a gauge of current sentiment surrounding the stock.
And recently, all three stocks above – Ulta Beauty (ULTA - Free Report) , Carnival (CCL - Free Report) , and Occidental Petroleum (OXY - Free Report) – have received price target upgrades.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Many investors are familiar with price targets, as they represent analysts’ expectations of a stock’s future price.
Of course, analysts interpret many factors, including fundamental and technical, when calculating these levels.
In addition, price targets can be helpful for investors, helping to provide a more structured trade with pre-determined exit levels. However, it’s critical to remember that not all stocks reach analysts’ forecasted levels.
Three stocks – Ulta Beauty (ULTA - Free Report) , Carnival (CCL - Free Report) , and Occidental Petroleum (OXY - Free Report) – have all recently received price target upgrades. Below is a chart illustrating the performance of all three stocks in 2023, with the S&P 500 blended in as a benchmark.
It raises a valid question – why have analysts raised their expectations? Let’s take a closer look.
Occidental Petroleum
Occidental Petroleumis an integrated oil and gas company with significant exploration and production exposure.
Recently, TD Cowen moved their price target for OXY shares up to $70 per share from $63 while upgrading the stock to outperform.
The company’s cash-generating abilities were amplified during elevated energy prices, as seen in the chart below. Over the last twelve months, Occidental Petroleum has generated nearly $13 billion in free cash flow.
Just on February 27th, the company increased its annual dividend payout to $0.72 per share ($0.18 per share quarterly), reflecting a nearly 40% increase from the previous annual rate of $0.52 per share.
Ulta Beauty
Ulta Beauty is a leading beauty retailer in the United States, with a vast product catalog that includes cosmetics, fragrances, skincare, hair care, bath and body products, and more. Ulta Beauty’s price target was raised to $615 per share from $610 by Piper Sandler.
The company’s earnings outlook has improved across all timeframes over the last 60 days, landing it into a Zacks Rank #2 (Buy).
Impressive quarterly results undoubtedly aided in the price target upgrade; ULTA has exceeded the Zacks Consensus EPS Estimate by double-digit percentages in nine consecutive quarters.
Within the most recent quarterly print, the beauty retailer delivered a 17% earnings beat and reported revenue 6.2% ahead of expectations.
Carnival
Carnival, a cruise and vacation company, is the world's leading leisure travel firm, carrying nearly half the global cruise guests. Carnival’s price target was upgraded to $13 per share from $12 by Barclays.
A recovery in travel demand has benefited the company, with CCL exceeding earnings estimates in back-to-back quarters after a string of negative surprises.
In its latest release on March 27th, the company registered an 11.3% EPS beat and reported revenue nearly 2% ahead of expectations.
The recovery in travel demand is further illustrated by the company’s strong forecasted growth rates; earnings are forecasted to soar nearly 100% in its current fiscal year (FY23) and a further 570% in FY24.
Bottom Line
Price targets are commonly discussed in the market, giving investors a gauge of current sentiment surrounding the stock.
And recently, all three stocks above – Ulta Beauty (ULTA - Free Report) , Carnival (CCL - Free Report) , and Occidental Petroleum (OXY - Free Report) – have received price target upgrades.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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