Strong Buys, Down Big: 2 Beaten-Down Stocks Analysts Still Love

Two strong buy stocks, two very different stories. One just had a dramatic whiplash following their earnings and the other is down 27% year-to-date. But one thing in common is that they are trending with Wall Street analysts this week and they're coming in with a buy. So, let's get into it. All right, guys. Welcome back. Thank you all so much for being here. Today, we're taking a look at two stocks that have been trending on Wall Street lately as some of the best rated from the past week. We're going to dive into each company, what it is that they do, and what these Wall Street analysts have to say lately. I came across today's stocks on TipRanks trending stocks page found underneath the research tools menu. Here we're looking at the best rated stocks from the past 7 days to get our list of companies down below. You can check out the trending stocks for yourself over on the TipRanks website or right on the TipRanks mobile app. And if you enjoyed today's video, make sure you hit that thumbs up button and that you're subscribed to the channel. Now, let's dive right into today's stocks. First up, we're taking a look at Danaher. They trade under the ticker DHR, currently priced just shy of $200 per share. Year-to-date, the stock is down nearly 13% and more recently this past week they had a steep sell-off following their earnings report, but have been rallying back since. Danaher is a life sciences and diagnostics company. Think lab equipment, genetic testing tools, and medical diagnostics that hospitals and biotech firms rely on every day. Its brands include Cepheid, Beckman Coulter, and Leica Biosystems. It's less flashy than a tech stock, but its tools sit behind the scenes of drug development and disease testing worldwide. As you saw on the chart, the stock did drop following their latest earnings report back on July 21st and And is despite the company coming out both an earnings and revenue beat. Their Q2 earnings per share of $1.94 beat by 9 cents per share, while revenue of 6.26 billion beat by 144 million. But, like we said, the stock did sell off. And the culprit behind that is that Danaher trimmed its core revenue outlook, even while raising full-year earnings per share guidance. And bioprocessing demand, one of their key growth engines, has been choppy and less predictable quarter to quarter. There were highlights from the quarter, though, with that earnings and revenue beat, plus strong cash generation of 1.3 billion dollars, and the company raising that full-year earnings per share outlook and the second half of the year outlook. Now anticipating Q3 revenue growth of 2 to 3% Following that earnings report, we've had more than a dozen Wall Street analysts weigh in on the Danaher stock. Including one at Argus. The five-star analyst notes that the recent trading volatility in the shares presents a buying opportunity. The company saw sequentially higher revenue growth at its life sciences and diagnostic segments, while the biotech segment had shipment push-outs of orders. But, the latter development is a near-term headwind and does not take away from the strengthening of the underlying business, as reflected by double-digit growth of consumables and instruments in Q2. We have seen several analysts slightly lower their price targets on the stock, but most of them are still reiterating buy ratings. With 20 current ratings, the Danaher stock comes in as a strong buy with 17 buys and three holds. Their average price target comes in at $219, implying an upside potential of 10%. Looking at those recent ratings down below, they range from a pretty flat price target here with a hold and an upside of 0.26% to a high-end buy rating with an upside of over 20%. Our second stock today is ServiceNow. They trade under the ticker NOW or N O W, currently priced at about $112 per share. Their stock is down over 46% in the past year, 26% year-to-date, but in the last 3 months has gained 18%. ServiceNow builds cloud software that helps large companies automate their internal workflows, IT service requests, HR processes, customer support tickets, all in one platform. It's increasingly positioning itself as an AI company building AI agents that handle these workflows automatically for enterprise customers. ServiceNow has beaten earnings and revenue expectations for three consecutive quarters, but the stock has dropped after every single one. In their most recent quarter on July 22nd, earnings per share of 90 cents beat by 4 cents, while revenue of 3.99 billion beat by about $60 million. The company saw their AI annual contract value grow 40% quarter over quarter. They saw 98% customer renewal rate, and customers generating more than 5 million in ACV grew to 658. But when we look at the low lights, some of that included their subscription revenue growth being only 5% quarter over quarter, which was a wide gap versus the AI ACV growth, and their rising AI and cloud infrastructure costs are pressuring subscription margins. OpenAI also launched a competing enterprise AI agent platform, adding to competitive concerns. Following that earnings we did hear from plenty of Wall Street analysts, but a bit of a mixed outlook with some increasing price targets while others lowered. An analyst at JP Morgan bumped up their price target, saying the results and outlook eased concerns on software companies, and that investors should feel more reassured around the strong position that ServiceNow is establishing with its enterprise customers through AI control tower and associated orchestration. Another analyst at UBS did lower their price target a bit. They said that ServiceNow's stable Q2 results and modest guidance increase support the post-earnings rebound. Though underlying demand remains max and the beat is viewed as solid rather than a meaningful acceleration. With 31 analysts currently weighing in on the ServiceNow stock, they do lean towards a buy with 28 buys, one hold, and two sells. The average price target of $139 implies an upside potential of over 24%. And as you can imagine, we have quite the range of price targets down below. On the low end, we have a sell rating with a downside of 24% while on the high end, we have a buy rating with an upside of 121%. So, that is a quick look at two stocks that have been trending with Wall Street analysts this past week coming in with an overall strong buy consensus. Let me know your two thoughts on these companies and which one you'd put on your watchlist. I always love hearing from you guys. And of course, please remember these videos are never a suggestion to buy or sell any specific stock. So, make sure you're always doing your own research and analysis. Thank you guys so much for watching. Have a great day. I'll see you back here next time.