Tata Group is in talks to buy Wistron Corp's only manufacturing facility in India for up to 50 billion rupees ($612.6 million), the Economic Times business daily reported Wednesday, citing people familiar with the discussions.
China's yuan edged up against the greenback on Wednesday, as traders shrugged off weak factory activity data and remained optimistic that the government would relax some of the strict measures used to pursue its zero-COVID strategy.
A recession may be unavoidable as the Federal Reserve continues to move forward with its rate-hiking cycle. While the recent relief rally has been fueled by a promising and
better-than-expected CPI report, it may be too soon for the Fed to pull the brakes. Undoubtedly, it's hard to tell what's next. Nonetheless, investors should look to the companies that can turn a recession into an opportunity to gain a leg up over market rivals. Uber (
NYSE:UBER
), (
NASDAQ:AAPL
), and (
NASDAQ:COST
) are
three stocks that could add to their market shares, regardless of how "hard" the economy's rate-induced landing will be.
Uber (UBER)
Uber is the ride-hailing leader that many Americans have embraced with open arms. The company is now a fierce player in food delivery and generic transportation of goods. Indeed, Uber sees itself as the one and only transportation app that consumers need.
Undoubtedly, there's a lot of competition in transportation services reliant on the gig economy, and profitability prospects are quite slim at the worst possible time (in a rising-rate world). Still, Uber has been able to flex its muscles at the expense of the competition.
Uber's impressive (and growing) network of drivers and customers makes it a top dog. That said, it's the company's ability to offer value via food delivery and ride-hailing that could help it run away with market share in a recession year.
The Uber One subscription offers members considerable savings. In a recession, savings are what people want. The company notes that the average subscriber saves more per month than the price of admission through the modest 5% discount on eligible services. The savings really do add up over time!
Indeed, the service allows customers to save on food orders
and rides. That's a value proposition Uber's rivals can't quite offer yet. Certainly, Uber takes convenience to the next level with a service that I think allows it to leverage its network in a way to take more share away from its rivals.
As Uber wins more customers with such a potentially sticky service, the company may have what it takes to squeeze its rivals like never before. Ultimately, I think Uber's rivals in food delivery and ride-hailing will either need to merge or be acquired.
As Uber claws share from rivals while inching closer to profitability, analysts expect big things from the firm.
What is the Price Target for UBER Stock?
Wall Street is pounding the table on the ride-hailer. The average UBER stock price target of $49.07 implies 76.8% upside. That's a big expected gain for the year ahead!
Apple (AAPL)
Apple is a $2.25 trillion behemoth at writing. For a company that size, it seems unreal that there's still market share to be had. Though the iPhone is a beast in the smartphone market, it's still yet to squeeze its rivals. In recent quarters, Apple has gained significant ground over competitors.
The company recently reported its highest Q3 smartphone market share in 12 years. That's impressive, and I think it could be a sign of things to come as Apple opens up its ecosystem and looks to target to lower-end of the smartphone market.
I think Apple can go after the non-luxury segment of the smartphone market without damaging its brand affinity. Indeed, Apple has a lot of room to run to dominate the smartphone scene.
Though Apple faces supply issues ahead of the holidays, I still think the long-term trend is encouraging. The company's taking share, and as it gets into new services, the tech titan could become even more powerful with time.
What is the Price Target for AAPL Stock?
Wall Street still loves Apple, even with iPhone delays considered. The average AAPL stock price target of $180.48 implies 25.1% upside.
Costco (COST)
Costco is a retailer that could win over new loyal customers as inflation and economic headwinds push consumers to save money on their grocery bills at any cost.
The company is willing to offer a great deal if it means getting customers to subscribe to its membership. Undoubtedly, Costco's renewal rates in Canada and the U.S. are high at nearly 90%. As Costco keeps prices relatively low, the firm can bring on more "sticky" customers and raise prices at some point down the road.
It's not just Costco's bulk deals that could allow it to gain ground over other retailers. A push into digital retail and grocery delivery could be a game-changer. As inflation lingers into 2023, so too will Costco's competitive strengths.
At 40.4x trailing earnings, Costco stock remains richly valued. However, with such a wide moat and strength in a wildly-competitive retail industry, it's hard to dismiss its lofty valuation. It's a premier price tag that's well-earned!
What is the Price Target for COST Stock?
Wall Street doesn't mind the rich multiple, with a "Strong Buy" consensus rating based on 14 Buys and four Hold ratings. The average COST stock price target of $552.29 implies 4.4% upside potential.
Conclusion: Analysts Expect the Most Upside from UBER
All firms will face pressure from the same macro headwinds. That doesn't mean 2023 — a recession year expected by many — will be a "lost year" for the most competent firms. Companies that claw away market share from rivals could make the most of a difficult situation. Of the three Strong Buys, analysts expect the most upside from UBER stock.
Disclosure
India's Tata Group is in discussions with Taiwan's Wistron Corp to buy its manufacturing facility for up to 50 billion rupees ($612.6 million), the Economic Times business daily reported on Wednesday, citing people familiar with the talks.
Apple Inc's wide exposure to Chinese manufacturing, notable both for its low costs and rising risks, has receded since the COVID-19 pandemic began, company supply chain data shows.
Twitter Inc's Blue verified service is scheduled to roll out on Friday, but only on Apple's iOS mobile software, the Information reported on Tuesday, citing a person briefed on the plans.
What happened
Shares of Apple (NASDAQ: AAPL) declined by 2.1% on Tuesday after TF International Securities analyst Ming-Chi Kuo warned that the tech giant's smartphone shipments could come in far below investors' expectations.
The S&P 500 closed lower on Tuesday as investors awaited guidance on the Federal Reserve's path of interest rate hikes, while U.S. oil futures gained on hopes China loosens COVID-19 restrictions that have fueled fears about the global economy.
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Hub Group, Inc. (Symbol: HUBG), where a total volume of 6,014 contracts has been traded thus far today, a contract volume which is representative of approximate
The NASDAQ 100 After Hours Indicator is down -18.2 to 11,485.25. The total After hours volume is currently 73,820,924 shares traded.The following are the most active stocks for the after hours session: Edwards Lifesciences Corporation (EW) is unchanged at $74.85, with 3,029,375
The S&P 500 ended down on Tuesday, with losses in Apple and Amazon ahead of an upcoming speech by U.S. Federal Reserve Chair Jerome Powell that could provide hints about magnitude of future interest rate hikes.
The S&P 500 ended down on Tuesday, with losses in Apple and Amazon ahead of an upcoming speech by U.S. Federal Reserve Chair Jerome Powell that could provide hints about magnitude of future interest rate hikes.
Wall Street was mixed on Tuesday, with losses in Apple and Amazon ahead of an upcoming speech by U.S. Federal Reserve Chair Jerome Powell that could provide hints about magnitude of future interest rate hikes.
The Standard and Poor’s 500, or S&P 500 is a stock market index that includes 500 of the largest publicly-traded companies in the United States. S&P 500 stocks are some of the most widely held and traded stocks on the market, and they are often used as a barometer f
Apple Inc's iPhone 14 Pro and Pro Max model shipments could miss market expectations by up to 20 million units in the holiday quarter due to labor unrest at a major Chinese factory, TF Securities analyst Ming-Chi Kuo said.
Wall Street's main indexes fell on Tuesday as growth stocks extended declines, overshadowing a rise in energy shares after oil prices pared back gains on OPEC+ output concerns.
Every so often, a company comes along and has so much success that many investors end up retiring millionaires by simply going along for the ride. Apple (NASDAQ: AAPL) is one of those companies. The tech giant has seen success matched by very few in history, and it has been right
Investors who should be buying for the long-term too often allow themselves to be impacted by short-term influences, and this is what's happening with Apple right now.
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