Freedom Broker presented updated investment ideas for early August

Freedom Broker has updated its list of the most attractive stocks that retain upside potential over the next year. The selection includes shares of companies from various industries — from artificial intelligence and cloud software to the utilities sector — with expected upside potential ranging from 14.5% to 30%. The rating is presented in biweekly economic review No. 350.

Which stocks Freedom recommends buying

The updated list of Freedom Broker recommendations includes four companies from different sectors of the economy — consumer, technology, cloud software, and utilities. According to analysts, they share one thing: the market has not yet fully priced in long-term growth drivers, leaving room for price appreciation over the next year.

Nike (NKE) is a global leader in the sportswear and footwear market with a market capitalization of about $62 млрд. Over the past year, the company’s shares have fallen sharply due to weak sales in China and declining profitability; however, in recent months the stock has begun to recover amid a business restructuring program and improved expectations for financial results. Freedom analysts believe the market is underestimating the impact of these changes, as well as support from the return of import duties and a shift of the business toward a more profitable premium segment. The target price is $55; with the current price at $42.2, the upside potential is 30%.

ServiceTitan (TTAN) is a developer of a cloud platform for managing service businesses with a market capitalization of about $8 млрд. After a successful IPO, the company remains one of the beneficiaries of the ongoing digitalization of small and medium-sized businesses. Revenue is growing at double-digit rates, and demand for cloud solutions continues to increase. According to Freedom analysts, the software market still has strong growth potential thanks to the adoption of artificial intelligence and automation of business processes. The target price is $105; the current price is $84.5, implying upside of 24.3%.

Alphabet (GOOGL) is Google’s parent company with a market capitalization of more than $4.4 trillion. The shares are near all-time highs thanks to strong financial results, growth in the cloud business, and the development of AI-based services. Freedom analysts expect the global AI market to remain one of the key drivers of the technology sector, and that Alphabet will continue to increase profits through the monetization of new AI products. The target price is $400, implying upside of 10.4% based on the current price of $362.4.

Northwest Natural Holding (NWN) is a U.S. utilities company with a market capitalization of about $2 billion. The shares belong to the defensive segment of the market, which traditionally is in demand during periods of high uncertainty due to stable cash flows and dividend payments. Freedom analysts believe NWN shares may be an interesting choice for investors focused on moderate risk and stable returns. The target price is $57, with upside of 14.5%.

Freedom’s previous stock forecasts 

Other current investment ideas also included Boeing (BA) and First Solar (FSLR). According to analysts, Boeing continues to restore its financial performance thanks to rising deliveries of commercial aircraft and a record order backlog, while First Solar retains long-term growth drivers due to strong demand for solar generation and resilient financial results.

In addition, the market’s attention was drawn to the results of McDonald's (MCD), whose second-quarter profit exceeded analysts’ expectations. The resilient financial performance of the world’s largest companies, according to Freedom Broker, continues to create new investment opportunities across various sectors of the economy.

Not an individual investment recommendation.