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VMware at the NYSE, Dec. 14, 2021.
Source: NYSE

The market is set to begin what should be a quiet holiday week, but key catalysts are on the horizon.

The stock market is closed on Thursday for Thanksgiving Day, and it’s set to close at 1 p.m. on Friday. Investors are on guard for December: The Federal Reserve meets once more, and a blast of economic data, including November payrolls, is on the way.

More volatility may be ahead, which is more reason for investors to take a long-term perspective and select stocks that can withstand the tumult.

Here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

VMware

Software company VMware (VMW) is awaiting antitrust approval before it is acquired by Broadcom (AVGO). After the deal is closed, VMware shareholders can choose to receive $142.50 per share in cash or 0.2520 shares of Broadcom for each VMware share. This is why Monness Crespi Hardt analyst Brian White reiterated his buy rating and $136 price target on the stock ahead of VMware’s quarterly results.

White believes that VMware‘s price-to-earnings ratio of 19x is modest for a software company, and combined with the benefit of the deal with Broadcom, the company has been able to mostly remain above the carnage in the technology sector this year. (See VMware Stock Price & Analysis on TipRanks)

“In our view, VMware offers a unique value proposition in the cloud and the attractive economics of its business model are self-evident,” said White. For the upcoming quarterly results, the analyst expects the company to be on track to meet his top- and bottom-line estimates.

White ranks at the 657th position among a roster of more than 8,000 analysts on TipRanks. He has been successful with 56% of his ratings, with each rating garnering an average return of 8.9% over the past year.

Lattice Semiconductor

Chip company Lattice Semiconductor (LSCC) is looking forward to making the most of the untapped opportunities in the FPGA (Field Programmable Gate Arrays) market, a niche semiconductor market that allows customers to reconfigure the hardware after manufacturing.

After a discussion with the company’s new management, Susquehanna analyst Christopher Rolland noted that the company’s new FPGA platform, Avant, is gathering early traction among testing customers. Management expects this platform, which is due to be launched in December, to add about $3 billion to the company’s total addressable market, taking it to $6 billion. (See Lattice Semiconductor Financial Statements on TipRanks)

Although Rolland has spotlighted Lattice’s technology, he seemed encouraged by the new management team’s vision of pulling the company out of a growth rut. The analyst notes that the team has “revamped their entire roadmap, bolstered their supply chain, and expanded into new markets.”

With these observations, Rolland reiterated a buy rating on LSCC stock with a price target of $75. He holds the 31st position among more than 8,000 analysts tracked on TipRanks. Notably, 68% of his ratings have been profitable, and each rating has generated 21.6% average returns.

Dentsply Sirona 

Dentsply Sirona (XRAY), the professional dental products and technologies manufacturer, is grappling with underperformance in both the U.S. and China as well as currency headwinds. The latest quarterly results reflected these challenges, with the company falling short of earnings and revenue expectations.

Nonetheless, Barrington Research analyst Michael Petusky reiterated a buy rating on the stock, albeit with a lower price target of $40 versus the $51 expected earlier. “We had anticipated reduced guidance for the past couple of months as macro conditions have become more challenging,” he said. (See Dentsply Sirona Dividend Date & History on TipRanks)

Ranked No. 956 among more than 8,000 analysts followed on TipRanks, Petusky has a success rate of 50% with his ratings. Additionally, each of his ratings has brought in an average return of 7%.

ICF International

ICF International (ICFI) is a global consulting services company that caters to major clients in the federal government, international governments and energy markets. The company’s marketing services segment was severely affected during the pandemic and is still undergoing a slow recovery.

However, Barrington analyst Kevin Steinke is optimistic about the company’s roadmap to fix this issue. ICF plans to “focus on the core commercial marketing service lines of business transformation, loyalty, and innovative communications.” ICF is focused on expanding its commercial businesses, solidifying its technology-based offerings and pursuing large contract opportunities. These are its long-term strategies to grow revenue and increase shareholder value.

Steinke raised his 2022 adjusted earnings per share estimate to $5.77, representing 20% year-over-year growth, up from $5.59 “to reflect the increased guidance driven by the one-time tax benefit.” (See ICF International Hedge Fund Trading Activity on TipRanks)

Steinke stands at the 417th position among over 8,000 analysts ranked on TipRanks currently, having a 54% success rate and 11.7% average returns per rating.

GlobalFoundries

Semiconductor foundry GlobalFoundries (GFS) is one of Deutsche Bank analyst Ross Seymore’s favorite stocks. The company’s latest quarterly report made Seymore all the more bullish.

It is no surprise that investor attention is currently fixed on the headwinds that await the economy in the coming months. GlobalFoundries acknowledged these obstacles and even reduced its utilization expectations for the fourth quarter, which would impact the gross margin. Nonetheless, the company still expects to be able to grow revenue in 2023. (See GlobalFoundries Inc Stock Chart on TipRanks)

Seymore reiterated a buy rating on the stock with a price target of $67. “Overall, even with our below guided 2023 estimates, we continue to believe GFS’s share price can remain resilient as co-specific drivers (unique processes, share gains via LTAs & geopolitically driven redistribution of future fabless manufacturing plans, costs cuts, etc.) offset macro headwinds,” the analyst said.

Seymore is ranked 18th among more than 8,000 analysts on TipRanks. His ratings have a 74% success rate, with each generating average returns of 22.4%.

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