Today Top Stock Upgrades and Downgrades

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Find out what happening right now and get all the pieces of the puzzle on important data activity before the major news sources break the story and see what are the trends
 

•  13 Jan 2025
 

Today upgrades, downgrades, and target price milestones provide a wealth of insights for discerning investors. Stocks highlight sectors with strong underlying momentum, while downgrades and other cautious moves remind traders to remain vigilant about valuation and execution risks. For those ready to act, the market’s Monday opening provides a fresh slate to capitalize on these analyst-driven shifts.

Caterpillar $CAT has climbed out of the bearish corner with an upgrade from Evercore ISI. The firm cited Caterpillar’s strategic pricing initiatives as a pivotal factor that could drive its profitability in the coming quarters. With the global machinery giant leveraging strong demand in construction and infrastructure, this re-evaluation aligns with Caterpillar’s recent earnings beats and robust forward guidance. Investors who have been on the sidelines might see this as a timely entry point, particularly as infrastructure spending in the U.S. continues to gain momentum.

Chewy $CHWY also found itself in analysts' favor today, with Evercore ISI upgrading the stock. The rationale? Spending on pets appears poised for a resurgence, signaling optimism for the retailer in a normalizing U.S. pet industry. Chewy has been steadily expanding its subscription-based services, and this focus on long-term customer retention could translate into a durable competitive edge. While CHWY has faced volatility in the past year, today’s upgrade could be a harbinger of renewed investor confidence.

LegalZoom $LZ is garnering attention after JPMorgan double-upgraded the stock, pointing to positive data around business formations in late 2024 and early 2025. LegalZoom’s ability to capitalize on this uptick through its streamlined online services makes it a strong contender for growth in the small business market. Analysts also noted an improved EBITDA outlook, suggesting that operational efficiencies are complementing its revenue drivers. For those seeking exposure to the entrepreneurial sector, LegalZoom might warrant a closer look.

Douglas Emmett $DEI received a vote of confidence from Piper Sandler, raising the stock to Overweight. Analysts are banking on demand tailwinds in the Los Angeles market, which could be buoyed further by rebuilding efforts following the recent wildfires. Real estate investors should monitor this development closely, as localized catalysts often create outsized opportunities in this sector.

Doximity $DOCS has been upgraded to Buy, with analysts highlighting its promising growth trajectory and strong execution. Doximity’s innovative approach to networking and telehealth services positions it well in a rapidly digitizing healthcare landscape. This upgrade reinforces the stock’s appeal for investors who prioritize growth in tech-enabled industries.

On the downgrades side, Pinterest $PINS caught attention as an analyst shifted to a more cautious outlook. Despite this, Pinterest’s focus on product innovations and enhanced monetization strategies leaves room for a turnaround story. Traders should weigh today’s move against the company’s broader strategic efforts to reinvigorate user engagement and advertising revenue.

United Airlines $UAL stands out as a strong buy ahead of its Q4 earnings report. Analysts expect UAL to benefit from sustained travel demand and operational improvements. With many airlines signaling bullish outlooks, UAL’s next earnings release could reinforce its investment thesis for those bullish on the travel sector.

Finally, Waters Corp $WAT and RPC Inc. $RES reached notable milestones today, each trading above their respective average analyst target prices. These movements often signify that the market is pricing in stronger-than-anticipated growth or profitability. Traders might interpret this as a signal to reassess these stocks valuation metrics in the context of their recent performance.