Smartsheet (SMAR)
This work-management platform helps companies implement, organize and automate their processes. Smartsheet says its application is used by more than 80% of Fortune 500 companies.
And business is growing. In the fiscal quarter ended April 30, revenue surged 44% year over year to $168.3 million, driven by a 44% increase in subscription revenue.
Notably, Smartsheet’s dollar-based net retention rate was a solid 133%.
But the stock is far from being a hot commodity. Year to date, shares are down a painful 61%. That could give contrarian investors something to think about.
Last week, JPMorgan analyst Pinjalim Bora reiterated an “overweight” rating on Smartsheet. While Bora also lowered his price target from $80 to $58, the new target is still 96% above where the stock sits today.
Shopping online? Let Capital One Shopping find and apply the best coupons for you. No hassle, just savings. Install now, save always.
Learn MoreMicrosoft (MSFT)
Tech stocks are getting dumped in this market downturn. Even mega-cap behemoths like Microsoft aren’t immune to the bearish sentiment.
The stock has tumbled 26% in 2022.
But business remains on the right track. In the March quarter, Microsoft’s revenue grew 18% year over year to $49.4 billion. Adjusted earnings came in at $2.22 per share, up 9% from the year-ago period.
The tech gorilla is also returning a massive amount of cash to investors. For the quarter, Microsoft’s dividends and share buybacks totaled $12.4 billion, representing a 25% increase year over year.
JPMorgan analyst Mark Murphy recently raised his price target on Microsoft to $320 while maintaining a “buy” rating. That implies a potential upside of 30%.
Eli Lilly (LLY)
This American pharmaceutical giant commands more than $270 billion in market cap, with products marketed in 120 countries around the world.
Unlike the other two names on this list, Eli Lilly is not a beaten-down stock.
In Q1, Eli Lilly delivered 15% revenue growth, driven by a 20% growth in volume. The company paid nearly $900 million in dividends and spent $1.5 billion on buybacks during the quarter.
Shares are actually up 7% so far in 2022, and JPMorgan expects the trend to continue.
On June 1, analyst Chris Schott reiterated an “overweight” rating on Eli Lilly while raising his price target from $340 to $355.
Considering that shares trade at around $291 apiece right now, the new price target implies a potential upside of 22%.
Sponsored
Automatically apply coupon codes for free - it’s kinda genius
Capital One Shopping’s browser add-on automatically applies coupon codes as you shop online. It also alerts you whenever there's a better deal available from another retailer. It’s absolutely free – plus it takes only two clicks to install.
Add the Capital One Shopping browser extension today and start earning discounts of up to 50% on the things you already buy. Your bank account will thank you
