Ignore the Chaos and Watch These Wall Street Recommendations

Wednesday, December 17, 2014 Ignore the Chaos and Watch These Wall Street Recommendations   by Jamie Dlugosch   When witnessing irrationality, it is often best to divert your attention to specific stock stories instead of focusing on macro chaos.   Dig into the details and find opportunity using Wall Street analysts to guide your way.   The market never sleeps, so as Russia fights to defend the ruble with middle-of-the-night interest rate hikes, analysts on Wall Street are busy issuing upgrades or downgrades on specific stocks that you can use to keep your eye on the prize and protect or enhance your portfolio.   That's not always an easy thing to do when there is so much noise going on, as we are seeing today.   The bears want you to capitulate. The bulls say stay the course.     FURTHER READING This is the T-Rex of Dividend Stocks   After years of digging -- we've finally did it. We've uncovered a single stock so fierce -- and pays out dividends so IMMENSE -- you can actually live off them. This cash-cranking T-Rex of a company has hiked its dividend 10-FOLD... paying investors like you dividends of $428.57, $913.93, and $924.43! If these ever-increasing payouts sound good to you, click here for all the details.     Ultimately your investment decisions should all be based on the specific fundamentals of the individual stocks that you own or are considering to buy.   On Tuesday after Russia increased interest rates to 17%, RBC Capital Markets downgraded shares of General Motors (NYSE: GM).   RBC's downgrade to hold and lowering of the price target to $35 hit GM stock hard initially, but shares recovered to the flat line as the overall market rallied.   The main thesis for RBC is that automakers in general will face headwinds of less demand, higher costs to manufacture thanks to regulatory pressures, and pricing issues.   The arguments may have merit, but I don't think they have staying power.   Analysts have been suspicious  of the auto recovery for some time and demand has always been stronger than expected of late.   That will only continue with gasoline prices threatening to dip below $2 per gallon.   It would appear RBC is getting lost in the trees and merely guessing that demand will be lower without giving adequate consideration to the impact on demand of lower fuel costs.   I'd use the selling in GM as a buying opportunity.   The biggest winners of the lower gasoline story will be retailers.   Meanwhile, Stern Agee upgraded shares of Crocs (NASDAQ: CROX) from neutral to buy with a $16 price target. The stock jumped to $12.50 on the new opinion.   The upgrade was based mainly on  Crocs hiring a new CEO, Gregg Ribatt. Stern Agee believes the move to be very positive for the company and increased its  earnings estimates as a result.   A good CEO is certainly helpful, but the real reason Crocs is a buy is that consumers have more dollars in their pocket to spend on Crocs shoes.   The gold standard for shoes, at least in the sporting world, is  Nike (NYSE: NKE) and Oppenheimer initiated coverage of the sportswear company at outperform, putting a $110 price target on the stock.   Despite a premium valuation, Oppenheimer is not the only one that likes Nike shares.   Cowen & Co. also initiated coverage on Nike with a favorable "market perform" rating and the same $110 price target as Oppenheimer.   The momentum is clearly with Nike, and Wall Street is in full support. There are more gains here.   The markets may go up and they may go down, but stick to the individual stories for what's best for you and your portfolio.   Jamie Dlugosch Editor Investor Research Institute   To Read More From Investor Research Institute Click Here
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