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Home Uncategorized

Analysts name the EV and tech stocks that have more share price upside

seelatestnews by seelatestnews
December 6, 2022
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Analysts name the EV and tech stocks that have more share price upside
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It was a winning November for stocks, with the S & P 500 and the Dow Jones Industrial Average each rising more than 5%. The MSCI World also jumped over 6% in the same month. The period between November and January is also typically a good one for equity markets , according to the Stock Trader’s Almanac, whose data shows that the S & P 500 and Dow Jones have averaged a gain of at least 0.9% in each of the three months since 1950. With this in mind, CNBC Pro screened FactSet data for stocks that outperformed the MSCI World in November. These stocks are also buy rated by the majority of analysts covering them, and have average potential upside of at least 20% over the next 12 months. EV stocks The screen turned up several Chinese electric vehicle manufacturers: Li Auto , Xpeng and BYD . Hong Kong-listed shares of Li Auto rose 45.8% in November, but analysts covering the stock give it further potenial upside of 179%. On Thursday, the EV maker announced it delivered 15,034 vehicles in November, a record high and a 11.5% increase from the same period a year ago. Shares in rival Xpeng climbed 32.5% in the same month. On Nov. 30, the automaker posted a wider-than-expected loss for the third quarter while revenue fell short of Wall Street expectations. But U.S.-listed shares in Xpeng jumped 45% as investors cheered the company’s prediction that falling deliveries could soon hit a bottom. The company delivered 29,570 electric vehicles in the third quarter, a 14% decline from the second quarter. The stock is buy rated by about 70% of analysts covering it, who give it average upside of 164.3%. Meanwhile, shares in Warren Buffett-backed BYD were up just 9% in November, but analysts think the stock could rally 68.4% looking ahead. The automaker was the top-selling car brand in China in the first four weeks of November, according to a Reuters report last week . It noted that BYD sold 152,863 vehicles from Nov. 1 to Nov. 27, representing an increase of about 83% in average daily sales compared to the same period a year ago. The company said last week it will begin selling its vehicles in Mexico in 2023, just two months after it announced plans to build a factory in Thailand . It aims to sell up to 10,000 vehicles in Mexico next year and up to 30,000 in 2024, according to a Reuters report . Tech stocks A slew of Chinese tech stocks made the screen too, including Alibaba and Tencent . Analysts are bullish on Alibaba, with 89% of analysts holding a buy rating on the stock and giving it average upside of 39%. Andrew Maynard, head of equities at investment bank China Renaissance, believes Chinese Big Tech stocks such as Alibaba and Tencent are “incredibly cheap.” “We feel that Alibaba, especially with the buyback announcement, is what investors are starting to believe, offers them a great opportunity relative to some of the global peers,” Maynard told CNBC last month. Read more Goldman Sachs upgrades this global tech giant, saying the stock could rise up to 90% Fund manager names two global retailers that are about to ‘dominate’ A number of global semiconductor stocks also turned up on the screen. Shares in Taiwan Semiconductor Manufacturing Company jumped 25.6% in November, and analysts think it can still go 24% higher. Buffett’s Berkshire Hathaway disclosed a $4.1 billion, or 1.2%, stake in TSMC last month, making the chip giant the conglomerate’s 10th biggest holding at the end of September. Other chip stocks that made the list include ASM International , Broadcom , Unimicron , Micron and Infineon . — CNBC’s Jesse Pound contributed to this report.



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