Recently, Elon Musk tweeted that he is "Working on Master Plan Part 3." Following which, Morgan Stanley’s Adam Jonas made a long list of what this could entail, and now the analyst has added another possibility – a reworking of the US’ energy grid.
“If it wasn’t already clear to investors, events of the past month have reinforced the relationship between energy security and national security. Energy Security = National Security,” noted the 5-star analyst.
And according to Jonas’ colleague, analyst Stephen Byrd, in its present state, the US electricity grid is in no way ready for mass adoption.
A White Paper by Edison International, titled Mind the Gap: Policies for California's Countdown to 2030, states, "To provide supporting infrastructure for 7.9 million ZEVs by 2030, a funding gap of $10 billion exists for the remaining 900,000 chargers."
So, how does Tesla (TSLA) fit in here? Jonas explained, “In our view, Tesla is uniquely positioned to accelerate necessary re-architecting of the US grid including making the entire vehicle population (or ‘parc’) an essential ingredient of the distributed energy ecosystem.”
Car included, Jonas imagines a “mobile, connected/crowdsourced, distributed grid” which could have a huge effect on the future of energy architecture, renewables and economics and then wonders whether that could usher in “The dawn of IOP (Internet of Power)?”
It’s possible, and Jonas would not consider it a shock if at some point in the future, vehicle to grid (V2G)/bi-directional charging capability becomes a “requirement for all vehicle sales.”
While so far investors have focused their attention primarily on BEVs, given the role it stands to play in “enabling renewable generation and greatly reducing dependency of power generation from fossil fuels,” Jonas anticipates grid-level stationary storage will soon start receiving a lot more attention.
Turning our attention to Jonas’ outlook for Tesla stock, the analyst sticks with an Overweight (i.e., Buy) rating backed by a $1,300 price target. The figure provides room for ~30% growth from current levels. (To watch Jonas’ track record, click here)
The Street’s average target is more modest. At $1,063 and change, the figure suggests shares will appreciate by 6% in the year ahead. Overall, the analyst consensus rates this stock a Moderate Buy, based on 16 Buys, 5 Holds and 6 Sells. (See Tesla stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Nikola (NASDAQ: NKLA) has been languishing on the stock market ever since going public almost two years ago. The stock price has depreciated around 85% from its highest price that was achieved on June 9, 2020, a few days after its IPO.
Last year, former chairman Trevor Milton was charged with fraud, having been found to lie about “nearly all aspects of the business” in order to push stock sales. Investors have had difficulty reestablishing trust in the company ever since then.
With Nikola managing to swim out of legal hot waters towards the end of 2021, market watchers had one question in mind; can the company regain its lost ground?
Regaining Foothold SlowlyPatient investors got an opportunity to rejoice Thursday, when the company announced that the production of revenue-generating trucks has already started, and showcased its progress on hydrogen infrastructure. The stock surged 5.7%.
The company’s trial and testing of its BEV (battery electric vehicle) and fuel cell electric vehicle (FCEV) products has already started. The company intends to bring the Tre BEV — its approved zero-emission vehicle — to the U.S. market during the second quarter of 2022, and to Europe by the third quarter of 2023.
In December 2021, Nikola delivered its first Tre BEV pilot trucks to Total Transportation Services, and bagged a major order from Heniff Transportation Services, thrusting the company into the limelight, but for the right reasons this time.
So far this year, Nikola’s heavy-duty Tre BEV trucks have received orders from the likes of USA Truck, Saia LTL Freight, and Covenant Logistics Group.
In January, Nikola landed a multi-year deal with Proterra for Tre BEV and Tre FCEV to be powered by Proterra battery technology. The first product of this deal is expected to be ready in the fourth quarter of 2022.
Thus, it looks like the company is trying its best to make a comeback.
More to OvercomeNikola still has a long way to go. We still don’t know whether the trucks will pass the testing phase with commercial customers. Nor do we know whether Nikola will be successful in keeping up with follow-up orders, given the persisting global chip shortage and prioritizing of the electrification of lighter vehicles over heavy-duty ones.
Moreover, two years of litigation and the legal settlement have dented the company’s financials.
Intense competition from first movers like Tesla (TSLA) and other strong contenders like Nio (NIO) is expected to be an overhang as well.
Also, the company is still far from generating meaningful revenues through mass production.
Expert’s Cautious StanceJPMorgan analyst Bill Peterson thinks Nikola still has work to do. He does see upsides to the business; for instance, long-term margin growth opportunities once the supply constraints ease.
He is also upbeat about the company’s focus on the production and testing of Tre BEV and intention to cut battery costs over time. Peterson also believes that the parts of the business focused on hydrogen will drive long-term growth.
Yet, he still believes that despite executing its operations well at this point, this might not be the best time to buy or sell off NKLA shares. With these observations, Peterson maintained a Hold rating on the stock, with a price target of $10.
Wall Street agrees with Peterson and maintains a cautious stance, with a Hold consensus rating based on one Buy and eight Holds. The average Nikola price target is $11.
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In a volatile environment, it pays to have a smart portfolio. Which stocks will help investors ride out inflation, rising interest rates, and other macroeconomic headwinds? TipRanks has the answer.
The TipRanks Smart Portfolio allows investors to benchmark their portfolios against the best performing portfolios on TipRanks, and also the average TipRanks Portfolio.
Investors can use this tool to track their portfolios against the Best Performing Portfolios based on asset allocation (both sector-wise and assets-wise), and dividend yield.
Investors can also look at whether their portfolio is riskier by evaluating the beta (a measure of risk) against the beta of the best-performing portfolios on TipRanks. In short, it is a very useful tool to track the performance of your portfolio.
So, which are the stocks that are a part of the Best Performing portfolios on TipRanks? Using this tool, we looked at five stocks that make up the Best Performing portfolios on TipRanks.
Apple (NASDAQ: AAPL)Apple is a top stock in the portfolio of investors on TipRanks and made up 18.3% of the Best Performing Portfolio on TipRanks. Even Wall Street analysts are bullish about the stock with a Strong Buy consensus rating based on 23 Buys and five Holds.
While AAPL stock has been under pressure so far this year, Wedbush analyst Daniel Ives believes that “the company is setting up for a monster growth cycle over the next 12 to 18 [months] that is not baked into shares at current levels.”
According to Ives, the underlying demand for Apple’s iPhone 13 is strong in both the U.S. and China. As a result, the analyst is upbeat about the stock with a Buy rating and a price target of $200 (14.3% upside) on the stock. The average AAPL price forecast of $193.36 implies approximately 10.8% upside potential to current levels.
Even the Crowd Wisdom tool on TipRanks indicates that investors are very positive about the stock. Out of the 115,377 best-performing portfolios on TipRanks, 10.3% of all portfolios hold AAPL.
Tesla (NASDAQ: TSLA)Tesla comprises 10.4% of the Best Performing portfolios on TipRanks. Tesla has not been immune to the upheaval in the stock markets and the stock has tanked 15.5% year-to-date.
Ives stated that TSLA stock “has been way oversold over the past few months along with the risk-off mentality among tech investors.” However, the analyst is of the view that the Street “over the past week has started to better appreciate what the seminal launch of Giga Berlin means for the Tesla supply story in 2022 and beyond.”
The analyst has a Buy rating and a price target of $1,400, implying 38.1% upside on TSLA.
Other analysts, however, are cautiously optimistic with a Moderate Buy consensus rating based on 16 Buys, five Holds, and six Sells. The average TSLA price forecast of $1,063.88 implies approximately 5% upside potential to current levels.
Contrary to investors on the Street, investors on TipRanks are very positive about the stock. Out of 115,377 best-performing portfolios, 1.7% of portfolios have raised their holdings of TSLA in the past month.
Microsoft (NASDAQ: MSFT)Microsoft makes up 9.9% of the Best Performing portfolios on TipRanks. The stock has not been immune to the stock sell-off in the technology sector in 2022.
Jeffries analyst Brent Thill thinks that the stock is attractively valued at current levels. Moreover, the analyst believes that the tech giant’s operating margins are likely to improve “modestly” over time but “will face headwinds for the next year or two as MSFT invests in the business and laps pandemic-related savings.”
The analyst remains optimistic about the stock with a Buy rating and a price target of $400, implying an upside potential of 31.7%.
The stock also gets a resounding Strong Buy consensus rating from the Street based on a unanimous 27 Buys. The average MSFT price forecast of $374.88 implies approximately 23.4% upside potential to current levels.
Investors are, however, very negative about the stock, as indicated by the TipRanks Crowd Wisdom tool. Among the 115,377 best performing portfolios on TipRanks, 8.8% of them hold MSFT. In the past month, 1.2% of these portfolios have reduced their holdings of the stock.
Amazon (NASDAQ: AMZN)Amazon is another technology favorite among the best-performing portfolios on TipRanks and makes up 9.3% of such portfolios. The stock continues to remain a favorite of analysts, too.
Morgan Stanley analyst Brian Nowak recently analyzed how rising fuel costs could impact AMZN’s shipping costs.
While the analyst lowered his FY 22 and FY 23 EBIT estimate for AMZN by approximately $5.6 billion and $1.1 billion, respectively, Nowak continues to expect “revenue acceleration and margin expansion (even through higher fuel costs) to drive outperformance.”
As a result, Nowak continues to be upbeat with a Buy rating and a price target of $4,200 (27.5% upside) on the stock.
Wall Street analysts have a consensus rating of Strong Buy on Amazon based on 34 unanimous Buys. The average AMZN price forecast of $4,185.75 implies approximately 27% upside potential to current levels.
The Crowd Wisdom tool on TipRanks indicates that investors are very positive about AMZN with on average, the stock comprising 14.9% of portfolios of best-performing investors on TipRanks. In the past week, out of 115,377 best-performing portfolios, 0.9% of portfolios have increased their holdings of AMZN.
Nvidia (NASDAQ: NVDA)Nvidia, the semiconductor giant has seen its stock pop by 15% in the past month. Investors are buying into the stock as it recently unveiled several new hardware products, ranging from CPUs (Grace Superchip), Networking (Spectrum-4 ethernet platform), and Systems (DGX H100) on its Investor Day earlier this week.
J.P. Morgan analyst Harlan Sur also came away bullish on the stock following its Investor Day, and believes that the company stands to benefit from the major trends in artificial intelligence, high-performance computing, gaming, and autonomous vehicles with its range of products.
The analyst added that NVDA remains “1-2 steps ahead of its competitors.” Sur reiterated a Buy rating and a price target of $350 on the stock.
Rest of the analysts on the Street echo Sur and are optimistic about the stock with a Strong Buy consensus rating based on 21 Buys and five Holds. The average NVDA price forecast of $350.22 implies approximately 26.2% upside potential to current levels.
However, corporate insiders seem to be negative about the stock as indicated by the Insider Trading activity tool on TipRanks. In the last three months, corporate insiders have sold NVDA shares worth $4.4 million.
Bottom LineFrom this list, it is evident that the technology sector is a strong favorite among investors and makes up more than 50% of the best-performing portfolios on TipRanks.
Considering that analysts are also bullish or cautiously optimistic about these stocks, it seems that these tech heavyweights are poised to succeed, even in the face of macroeconomic headwinds.
Download the TipRanks mobile app now.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure.