Here Are Wall Street’s Favorite Nasdaq Stocks As “Signs Around Bottoms Are Starting To Appear”

But they see that “signs are beginning to appear that tend to perk up around the bottoms.”

They added: “But in the spirit of ‘the market values ​​things before they happen’, it doesn’t look like the investment community is missing much of the picture.”

If they are right, it means that investors have already priced in the uncertainty of a rising rate environment and geopolitical concerns, and the market should soon be back on track.

Below is a list of stocks in the Nasdaq-100 index that are highly rated by analysts and are expected to rise in price by as much as 72% over the next year.

Here is how the broad indices have fallen from their all-time intraday highs:

Index	Heart	decline from above	Closing – January 22	intraday high	Intraday high date
Nasdaq Composite Index	comp, -2.89%	-fifteen%	13,768.92	16,212.23	11/22/2021
Nasdaq-100 Index	NDX, -2.74%	-14%	14,438.40	16,764.86	11/22/2021
S&P 500	SPX, -2.47%	-9%	4,397.94	4,818.62	04/01/2022
Dow Jones Industrial Average	DJIA, -1.96%	-7%	34,265.37	36,952.65	05/01/2022
Source: FactSet

Only the Nasdaq COMP Composite Index,
-2.89%
and the Nasdaq-100 NDX index,
-2.74%
they are seen as being in correction territory, down at least 10% from their 52-week intraday highs (which happen to be all-time highs for all four indices).

The Jefferies team warned that it might be too early to assume last week’s ending was the worst of the pullback, but they also gave several reasons why that might be:

• “[T]The current 42-day drop from the NDX all-time high on 11/19 is already almost as long as the 2018 sell-off triggered by tightening (which lasted 64 days).”

• The market is pricing in four fed funds rate hikes by the Federal Reserve this year, which may be too aggressive.

• During the past seven cycles of rising interest rates, “most of the pain tends to be in the first month,” and the S&P 500 SPX,
  -2.47%
  and Russel 2000 RUT,
  -1.30%
  indices tend to perform better during the first 12 months after an initial rate increase than in a “typical” 12-month period.

• The S&P 500’s 12-month performance was “positive after each of the last seven initial gains.”

Projecting the Nasdaq-100

The Nasdaq-100 Index is made up of the 100 nonfinancial stocks in the entire Nasdaq Composite Index, by market capitalization. It is tracked by Invesco QQQ Trust QQQ,
-2.78%.

Among the Nasdaq-100, about two-thirds of stocks are rated “buy” or equivalent by most analysts surveyed by FactSet. Narrowing it down further to a “conviction list,” here are the eight with at least 85% “buy” ratings, ordered by upside potential over the next 12 months implied by consensus price targets among analysts surveyed by FactSet:

Company	Heart	Share “buy” ratings	Closing price – January 21	Consensus target price	Implied 12 month upside potential	Decline from 52-week high
CrowdStrike Holdings Inc. Class A	CRWD, -6.57%	87%	$164.73	$283.30	72%	-Four. Five%
Amazon.com Inc.	AMZN, -1.71%	96%	$2,852.86	$4,119.30	44%	-24%
Marvell Technology Inc.	MRVL, -4.92%	87%	$72.55	$102.68	42%	-23%
Workday Inc. Class A	WDAY, -3.12%	88%	$245.69	$327.23	33%	-twenty%
Synopsis Inc.	SNP, -2.59%	88%	$303.31	$401.13	32%	-twenty%
Alphabet Inc. Class A	GOOGLE, -2.95%	94%	$2,607.03	$3,360.65	29%	-14%
Palo Alto Networks Inc.	panw, -3.92%	89%	$483.63	$620.30	28%	-sixteen%
Microsoft Corp.	MSFT, -3.91%	93%	$296.03	$370.77	25%	-fifteen%

You can click on the tickers to get more information about each company.

Then read Tomi Kilgore’s detailed guide to the wealth of information available for free on MarketWatch’s quotes page.

On the right, you can see how far the stock has fallen from its 52-week intraday high. CrowdStrike Holdings Inc. CRWD,
-6.57%
it has fared worse, but analysts also expect it to roar back to full blast.

Do not miss: This sector of the S&P 500 is expected to show the fastest sales and dividend growth in 2022 and 2023