3 stocks with high upside potential in the face of headwinds

Ford Motor Company

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The second largest national automaker, Ford (F – Get a report) has a combination of resources and liabilities. On the negative side, the rating agency Moody's has just lowered the rating of the company below the investment grade. Moody's relied on Ford's "operating and marketing difficulties" to explain the downgrade, and added that the company was at the beginning of a long restructuring effort in a bearish industry. "Data-reactid =" 34 "> The second largest automaker, Ford (F – Get a report) has a combination of resources and liabilities. On the negative side, the rating agency Moody's has just lowered the rating of the company below the investment grade. Moody's cited Ford's "operating and marketing difficulties" as a reason for the decommissioning, adding that the company was at the beginning of a long restructuring effort in a bearish sector.

Ford, for its part, does not seem worried about the downgrading of credit. S & P and Fitch still rank the company in the investment category and the restructuring evoked by Moody's includes an $ 11 billion investment in electric and hybrid vehicles. Capital investment includes new spending on factories, as well as vehicle design and autonomous driving systems.

Nevertheless, the downgrade of a credit rating agency's rating does not make headlines. Ford's shares lost 1.3% in the middle of the week. The title was very volatile this year, hovering between a low of $ 7.44 and a high of $ 10.36.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Two analysts weighed with buying odds on the stock Credit Suisse Dan Levy noted that Ford had $ 23 billion in cash, which gave him a lot of resources to finance his global restructuring effort. He writes, "For now, the downgrade of Moody's does not change anything to Ford's story. We believe that Ford's main objective remains the path of earnings recovery, which we continue to believe that it remains intact. "Levy's $ 12 price goal implies a 26% increase for Ford." Data-reactid = "37"> Two analysts weighed in Credit Dan Levy, of Credit Suisse, said Ford had $ 23 billion in cash, which gave it enough resources to finance its overall restructuring effort. He writes, "For the moment, the declassification of Moody's does not change anything in Ford's history. We believe that Ford's main objective remains the path to earnings recovery, which we still believe remains intact. Levy's $ 12 price goal implies a 26% rise for Ford.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Analyst John Murphy, from Merrill Lynch, agrees that Ford's outlook is optimistic. "We believe that Ford's turnaround in support should begin to generate more credit among investors, while an improvement in execution and communication could also allow Ford's multiple to to recover, although the retrograde news has been somewhat disappointing, "he said. remains determined to maintain its dividend to shareholders, with an impressive return of 6.35%, and that the main source of bad news – the slowdown in car sales in the European and Asian markets – has already been taken into account in the course of action. He set a target price of 13% on F shares, indicating a potential upside of 37%. "Data-reactid =" 38 "> Merrill Lynch analyst John Murphy agrees that Ford's outlook is optimistic, saying:" We believe Ford – the turnaround of help should begin to generate more credit among investors, while an improvement in execution and communication could also allow Ford's multiple to recover, although the retrograde news is somewhat disappointing. "Against the disappointment , he notes that Ford remains determined to maintain its dividend to shareholders, with an impressive yield of 6.35%, and that the main source of bad news – the slowdown in car sales in the European and Asian markets – has already been taken in the share price, setting a target price of $ 13 for F shares, indicating a potential upside of 37%.

Ford has a consensus of moderate buy consensus analysts, based on 4 purchases and 3 bookings of the last 3 months. The shares are selling for $ 9.45 and the average price target of $ 11.58 suggests an increase of 22%.

Netflix, Inc.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The first adept of the streaming of television content in line, Netflix (NFLX – Get a report) has the advantage of being in the face of the fiercely competitive Disney competition (DIS – Get a report) and Apple (AAPL – Get report) which will begin this fall. "data-reactid =" 49 "> Netflix adopted early on the field of streaming television content online (NFLX – Get a report) has the advantage of being in the face of the fiercely competitive Disney competition (DIS – Get a report) and Apple (AAPL – Get a report) which will begin this fall.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The main advantage of Netflix is ​​of course its library. of 400 original programs to run on the streaming service, which will be less of an advantage against Disney, which brings its famous Disney Vault to the party, but Netflix has Strange things A talent like Samuel L. Jackson and Oprah Winfrey on board is a clear sign of strength in the content creation market. "Data-reactid =" 50 "> The main benefit of Netflix is ​​of course its library of more than 400 original programs to run It will be less of an advantage against Disney, which brings its own famous Disney Vault to the party, but Netflix having done his evidence as a winner Strange things and talents such as Samuel L. Jackson and Oprah Winfrey on board are a clear sign of the strength of the content creation market.

The disappointing number of subscribers in the second quarter, however, lowered the share price of Netflix and the gain since the beginning of the company is only 9%. Netflix lost 15% after reporting net subscriber additions of $ 2.7 million, up from $ 5 million. Worse still, the company's main US market saw a drop of 100,000 subscribers instead of the expected 300,000. And to continue its momentum, Apple announced last week that its Apple TV streaming service, priced at $ 4.99 per month, would be significantly cheaper than the $ 8.99 billed by Netflix for its most basic service .

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Analysts seem to agree, however, that the fears for Netflix are exaggerated and the resources of society are sufficient to face the challenges. Michael Olson, from Piper Jaffray, writes: "A preliminary analysis of the research index suggests a 6.4% growth in the number of domestic subscribers in the third quarter of 2003, and international growth of 33% to 35%. In addition, the number of YouTube trailer views in the US for Netflix's leading originals is up 10% from the second quarter, reflecting a more appealing content palette. Netflix will expect Netflix to continue to capture a significant portion of traditional content revenue, despite the surge in new streaming services that is causing concern. "Olson sets price target of $ 440 at NFLX, which indicates a 49% confidence up." Data-reactid = "52"> However, analysts seem to agree that Netflix's fears are exaggerated and that the company's resources are sufficient to face the challenges. Michael Olson, 5-star analyst, Piper Jaffray, writes: "Preliminary analysis of the research index suggests growth of 6.4% of its domestic subscribers in the third quarter and 33% to 35% internationally , while the number of YouTube trailer views on the US for the main Netflix originals is up 10% over the same period of the previous year. Netflix continues to capture a significant portion of its traditional content budget, despite the influx of new streaming services that are currently causing concern, "said Olson on NFLX, indicating confidence in a 49 percent rise.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "analyst of Imperial Capital David Miller agrees, saying that "the market is too price-oriented, rather than the value of this price". Its price target of $ 451 implies an even more robust increase of 53% for the streaming giant. "data-reactid =" 53 "> David Miller, an analyst at Imperial Capital, agrees, saying that" the market is too price-oriented, not the value of this price. "Its price target $ 451 implies an even more robust increase of 53% for the streaming giant.

Overall, Netflix maintains a strong buyout from consensus analysts, based on a total of 25 purchase ratings defined over the last three months, with only 5 holdings and one sale. Shares are expensive at $ 295, and the average price target of $ 411 suggests a potential upside of 39%.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Visit TipRanks' Stock trend page today, to see what caught the attention of the best Wall Street analysts. "data-reactid =" 63 ">Visit the TipRank Trend Stocks page today., to see what caught the attention of the best Wall Street analysts.