5 Stocks to Watch: Week of 12/9/2024

By Jessie Moore, Stock Researcher and Writer

December 6, 2024 12:15 PM UTC

AXS

5 Stocks to Watch: Week of 12/9

1- Nutanix Inc. (NASDAQ: NTNX)

Zen Rating: A (Strong Buy)

Price: $68.24 at writing — see latest price here

Max 1-year forecast: $90.00

Why we’re watching:

It’s a STRONG BUY: With a Zen Rating of A, NTNX is in a class with stocks that have had an average return of +32.52% per year.
Among the 7 Component Grades that play into Zen Ratings, NTNX gets an A for Growth, with additional high marks in Sentiment and Financials, as well as a thumbs-up from our proprietary AI algorithm. (See the Rating)
Analysts agree: 11 analysts we cover tracking NTNX rate it a consensus Strong Buy, with 5 Strong Buy, 4 Buy, and 2 Hold Ratings. (See the ratings)
For instance, James Fish of Piper Sandler recently raised their price target on NTNX by 7.8% from $77 to $83 on 11/27 after Nutanix reported earnings.
Overall, Fish told readers, Piper Sandler remains confident in Nutanix's opportunities ahead, as well as its ability to execute, gain share, and drive higher free cash flow.

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2- Steelcase (NYSE: SCS)

Steelcase Incorporated manufactures office furniture. Through its Systems and Storage business, the company sells panel-based and freestanding furniture (storage systems, tables, and ergonomic work tools) and casual seating and specialty chairs.

Zen Rating: A (Strong Buy)

Price: $13.11 at writing — see latest price here

Max 1-year forecast: $18.00

Why we’re watching:

It’s our Stock of the Week: SCS is a repeat pick as Stock of the Week. Were you listening the last time we mentioned it? The stock is up 12% in the past month. But according to Zen Investor Editor-in-Chief Steve Reitmeister, it could continue to grow. Here are some highlights from his recent article:
Where SCS shines the most is through the prism of the Zen Ratings 115-factor analysis of every stock. A-rated stocks have beaten the S&P 500 by more than 3 to 1 since 2003. SCS comes out in the top 1% of the 4,600 stocks examined by the system for the likelihood of future stock price outperformance. That means it's an A-rated Strong Buy overall. Yet as we dig into the component grades we find even more to love about this stock.
94th percentile for AI factor: This singular factor is the most comprehensive in the 115-factor model as it scans many trends that point to stocks likely to outperform. As with any AI system, it keeps getting smarter. And right now it is telling you it is wise to buy SCS.
92nd percentile for Safety: This means you are not taking excessive risk to get the likely reward of SCS’ upside potential.
91st percentile Value: Please note that there are 21 different factors combined in the Value criteria. Each factor is proven to find stocks that outperform.

3- Meta Platforms Inc. (NASDAQ: META)

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide.

Zen Rating: B (Buy)

Price: $608.81 at writing — see latest price here

Max 1-year forecast: $811.00

Why we’re watching:

High Zen Rating: With an overall Zen Rating of B, META is in a class with top-rated stocks that have averaged +19.88% annual returns per year since 2003. (See how META scores on 7 Component Grades here)
Analysts agree it’s a Buy: 38 analysts we track rate META a consensus Strong Buy, with 26 Strong Buy, 10 Buy, and 2 Hold ratings.
Notably, Josh Beck of Raymond James (a top 2% analyst) recently reiterated a Strong Buy and $675 price target and added Meta Platforms to Raymond James' Analyst Current Favorites List.
The analyst said they believe the company is well-positioned to capitalize on the rising tide of AI monetization in 2025, thanks to tailwinds that include improved "recommendation models" that will increase engagement by mid-single to low-double-digits.

4- AppLovin Corp. (NASDAQ: APP)

Applovin Corporation, known as AppLovin, is a mobile technology company that enables developers to market, monetize, analyze, and publish their apps through its mobile advertising, marketing, and analytics platforms MAX, AppDiscovery, and SparkLabs.

Zen Rating: B (Buy)

Price: $373.70 at writing — see latest price here

Max 1-year forecast: $480.00

Why we’re watching:

High Zen Rating: With an overall Zen Rating of B, AppLovin is in a class with top-rated stocks that have averaged +19.88% annual returns per year since 2003.
High Component Grades: For each Zen Rating, 7 key components make up the overall grade. APP earns particularly high in two areas: Momentum and Financials. (See all the Component Grades here)
Analyst support: In addition to a high Zen Rating, APP has Wall Street’s support, with a Buy consensus among 17 top-rated analysts.
Notably, James Heaney of Jefferies recently raised their price target on APP by 48.1% from $270 to $400 on 11/26. Heaney expressed confidence in updating their FY 2024 to 2028 ad revenue forecasts following Jefferies' positive checks on AppLovin's e-commerce product pilot, including with the Snow Agency.
Even though it's "still early," their firm's checks reveal that the company's e-commerce platform is generating impressive returns on ad spend, similar to those of Meta Platforms, the analyst continued.

5- Axis Capital Holdings Ltd. (NYSE: AXS)

AXIS Capital Holdings Ltd provides insurance and reinsurance products and services through two underwriting platforms, AXIS Insurance and AXIS Re.

Zen Rating: A (Strong Buy)

Price: $94.05 at writing — see latest price here

Max 1-year forecast: $127.00

Why we’re watching:

It’s a STRONG BUY: Not only does AXS have a Zen Rating of A, indicating it’s in the top tier of the 4600 stocks we cover, but analysts also rate it a consensus Strong Buy, with 5 Strong Buy and 1 Buy rating.
Notably, Andrew Kligerman of TD Cowen raised their price target on Axis Capital Holdings (NYSE: AXS) by 7.6% from $118 to $127 on 11/27. See more ratings + forecasts for AXS here
More context: Kligerman met with Axis Capital Holdings' management, and their takeaways catalyzed their price target hike. Topics discussed during the meeting, according to the analyst, included Management's reiteration of its confidence in its underwriting and reserve strength, the company's new "centralized CUO" underwriting review process, and revised long-term incentive compensation.
AXS is also ranked #1 out of 20 on our Top Specialty Insurance Stocks to Buy Now screener.