The latest "Street Calls of the Week" report from provides key insight into how Wall Street has changed their positioning in a constantly changing macroeconomic environment, especially with major consumers as well as technology, energy, and more.
Let's look at some of the most important calls from this week and how they apply to investors.
🚀What They're Saying About Starbucks
One of the largest analyst movements for this week was an upgrade from Jefferies on Starbucks.
- Jefferies upgraded Starbucks to a "Hold" and changed their target to $92 per share (from $80)
- The key point of this call is stabilization in Starbucks after living with uncertainty for a while due to franchise agreements with China (finally signed)
👉 In conclusion: - Starbucks is no longer the go-go/ high growth/ hype stock. It is now more of a recovery story with steady cash flow. Also, the analysts believe that the majority of the bad news has already been released in the stock price, and therefore how much value will be created in the stock is much more limited than in the past.
🚀Industrial and Consumer Stocks are Showing Strength
Examples like:
- General Motors
- Clorox
are both experiencing upward movement and positive sentiment this week.
This is a reflection of a bigger trend:
- Investors are moving to value/ defensive sectors
- Overall the consumer cyclical and the consumer staples are benefitting from predictable earnings.
👉 Overall Insight:
- In periods of uncertainty and weak macroeconomic environments, the boring and stable companies will usually out-perform the high-end and hype companies.
Momentum in Tech and Semiconductors
Because semiconductors are an important part of the AI and automation trends.
Analysts are continuing to be selective, rather than speculative, in their bullish view of profitable tech stocks.
☀️ Renewable Energy Has Pressure
SolarEdge Technologies had a poor showing this week.
Possible reasons include:
- Margins are being pressured
- Demand is inconsistent
- Policy uncertainty regarding the direction of renewable energy
👉 Insight - although clean energy continues to be a long-term theme, the volatility we see in the near-term will have an impact.
📉 Bigger Picture: Wall Street's Real Opinions
Looking across all of these reports or calls-to-action, there is one noticeable trend:
📌 No More Free Money! Analysts are no longer automatically bullish. Each time an analyst upgrades a rating on a company, there is now caution from the analyst.
📌 Shift in Focus to Fundamentally-Based Companies: It appears that analysts and the market now place greater importance on profitability, cash flow, and execution than on hype.
📌 Selectively Optimistic: Instead of broad-based, indiscriminate rallies, we are now seeing stock-picking markets.
LeoFinance's Perspective: Week's Street Calls
Week's Street Calls confirm what Crypto & Stock Investors alike should now understand:
• We are in a "Post-Hype Market Cycle"
• In stocks, it's all about earnings & resiliency
• In crypto, it's all about real utility & adoption.
The days of easy gains are fading. Smart money is
• Rotating
• Hedging
• Carefully selecting winners.
Final Thoughts:
• Week's Street Calls indicate that markets are evolving, not imploding.
• Stability returning.
• Risk being repriced.
• Opportunities still available; however, only for those who are 'informed'.
What do you think? Are we moving toward a "safer" phase of the market? Or is it just the lull before the next storm?