Analysts are intrested in these 5 stocks: ( (USB) ), ( (PH) ), ( (XYZ) ), ( (ROST) ) and ( (TJX) ). Here is a breakdown of their recent ratings and the rationale behind them.
US Bancorp is catching the attention of investors as analyst Bill Carcache has upgraded the stock to a ‘Buy’. Despite being the biggest underperformer among mid-cap banks this year, the new CEO, Gunjan Kedia, is driving a sense of urgency to improve operations. The bank is well-positioned for rate volatility, with net interest income growth expected to be underappreciated. Credit metrics are improving, and the capital accretive model supports a return to target buybacks in 2026. The valuation is seen as compelling, with relatively less recession downside.
Parker Hannifin, on the other hand, has been downgraded to ‘Hold’ by analyst Nigel Coe. While the company has a strong track record of defending margins, the valuation is considered balanced with potential downside risks. The industrial business faces challenges due to macro uncertainties and potential recession risks. Despite a portfolio transformation, the company still has short-cycle DNA, and macro pressures could impact growth. The stock trades at a premium to historical valuations, making it a tricky setup for investors.
Block, Inc. has been upgraded to ‘Buy’ by analyst James Faucette, citing a compelling valuation and low expectations for growth reacceleration. The stock is seen as attractive on valuation, with macro risks well-priced in. Investor sentiment is mixed, but there is optimism about Square Seller’s growth potential. Recent headcount reductions and consistent spending trends suggest profitability outperformance potential. Despite bearish concerns, the valuation is seen as having “gone too far,” presenting an opportunity for investors.
Ross Stores is shining in the off-price retail sector, with analyst Paul Lejuez upgrading the stock to ‘Buy’. The company is expected to benefit from market disruptions and a weakening consumer environment, leading more consumers to trade down to off-price channels. The valuation gap with TJX suggests stock upside if Ross Stores can continue to execute well. The company is well-positioned for both near-term and long-term growth, with expectations of better traffic, sales, and margins.
TJX Companies is also in the spotlight, with an upgrade to ‘Buy’ by analyst Paul Lejuez. The company is benefiting from an attractive buying environment, helping sales and margins. TJX has significant momentum, with strong execution and pricing power. The off-price model is well-positioned for continued growth as other retailers struggle. The company is expected to maintain attractive price gaps versus competition, and a continued share shift to off-price is anticipated. The target price has been raised to reflect higher sales and margins.