🤯 You Won’t Believe These 3 Stock Upgrades Signaling Huge Reversals! 💥

Let's talk about three hot stocks that are signaling major trend reversals and why they might be worth your attention.

1. Palantir Technologies (PLTR):

Palantir Technologies (NYSE), recognized for its ties to the U.S. military and intelligence, is rated 'Hold' based on 13 ratings. The company’s average price target is $22.55, suggesting a 17% downside potential from the present $27.23.

However, Argus Research, which rates the big data business "Buy" and sets a $29 price objective, disagrees.

Palantir's success in government and commercial contracts supports the bullish argument. For the third phase of the TITAN program, which develops new military technologies, PLTR obtained a large U.S. Army contract. Palantir also secured a major DoD CJADC2 contract to build its Maven Smart System.

Beyond its impressive government contracts, Palantir has expanded into the commercial sector, reporting a 70% increase in U.S. commercial income. This growth is driven by its advanced AI capabilities, which help companies make data-driven decisions.

The company’s AI platform expanded with 600 pilots in 2023, showing the market potential for AI integration in business solutions.

Additionally, Palantir's collaboration with Voyager Space to use AI systems in space research and defensive technologies demonstrates its innovative approach to new markets. The company expects a significant rise in revenue, with growth of at least 30% per year until 2025.

2. Intel (INTC):

Intel (NASDAQ) used to be in charge of the chip business, but Nvidia and AMD (NASDAQ) are taking market share away, souring its outlook. INTC is a “Hold” according to 31 analyst ratings.

Twenty-five say the company should be kept, three say it should be bought, and three say it should be sold. This shows the market’s feelings about Intel, which is falling behind Nvidia and AMD.

The experts at Wolfe Research upgraded Intel from “Underperform” to “Peer Perform.” Analysts stressed that growth in server CPUs can’t cover the high costs of Intel’s 5N4Y strategy’s capital and retirement costs by itself.

Intel’s manufacturing business won’t break even until 2027, depending on how fast foundries grow. However, Wolfe Research thinks that gross margins will get better in 2025 as Intel buys more tiles and the cost of starting up the business goes down.

Aside from the rating, Intel deserves credit for working hard to compete with Nvidia and AMD. The Xeon 6 processors from Intel are the company’s next version of CPUs for data centers. They are fast and made for AI jobs. Intel’s Arc GPU is 50% faster, and its NPU is four times better. It is based on the next-generation Arc Battlemage design.

In the AI business, this lets it go up against Nvidia and AMD directly. Also, Intel’s Gaudi 2 and 3 AI processors cost less than Nvidia’s H100 and AMD’s MI300X GPUs, which are excellent for helping the business regain some market share.

3. PayPal (PYPL):

PayPal Holdings (NASDAQ) receives a lot of analyst love thanks to its 38% payment processing market share. PYPL now has 13 “Buy” and 16 “Hold” recommendations, indicating a mixed outlook.

It’s part of our contrarian stock upgrade research since Susquehanna upgraded PYPL from ‘Neutral’ to ‘Positive’ with a $71 price target.

PayPal hopes to increase market share in small and medium-sized firms making cross-border payments during Christmas shopping via PayPal Checkout with Pay Later and Fastlane.

Susquehanna believes PayPal will exceed transaction margin dollars and adjust EBIT dollar predictions in the coming years, and the stock is a suitable entry point.

Simultaneously, PayPal has introduced six AI-powered commerce options to increase revenue: Fastlane’s one-click guest checkout streamlines and boosts shop conversions. PayPal also introduced Smart Receipts, which employ AI to suggest and reward, and Advanced Offers, which target performance-based advertisers.​

PayPal launched the Solana (SOL-USD) blockchain stablecoin PayPal USD to boost digital trade. Finally, the new PayPal advertising platform customizes ads using its huge consumer and merchant data.

Investing in individual stocks can be highly rewarding, but broader economic factors can also influence your portfolio. Recently, the Japanese Yen has been making headlines due to its struggles.

The Japanese Yen struggles due to overseas asset purchases by Japanese individuals through the NISA program. The BoJ is set to evaluate a viable strategy for reducing its government bond purchases, and Fed Chair Powell may deliver a comprehensive review of the economy and monetary policy to the US Congress on Tuesday.

The Japanese Yen (JPY) extends its losses for the second successive session on Tuesday. The minor improvement in the US Dollar (USD) underpins the USD/JPY pair. However, the JPY could limit its downside due to fears of intervention by Japanese authorities in the FX markets.

The Japanese Yen also struggles due to overseas asset purchases by Japanese individuals through the newly revamped tax-free investment scheme, the Nippon Individual Savings Account (NISA) program.

According to Nikkei Asia, the scale of these purchases is expected to exceed the country's trade deficit during the first half of this year.

US Treasury yields are under pressure amid rising speculation that the Federal Reserve (Fed) may reduce interest rates in September, potentially limiting the upside of the US Dollar. The CME's FedWatch Tool indicates that rate markets price in a 76.2% probability of a rate cut in September, up from 65.5% just a week earlier.

Federal Reserve Chairman Jerome Powell will deliver "The Semiannual Monetary Policy Report" to the US Congress on Tuesday. Powell may provide a broad overview of the economy and monetary policy, with his prepared remarks being published ahead of his appearance on Capitol Hill.

On Tuesday, Japan's Finance Minister Shunichi Suzuki emphasized the importance of maintaining fiscal discipline to uphold confidence in long-term fiscal health. He also noted that he is closely monitoring discussions at the Bank of Japan (BoJ) meeting with the bond market, according to Reuters.

According to a Bloomberg report on Tuesday, the Bank of Japan is conducting three in-person meetings with banks, securities firms, and financial institutions over the next few days. The purpose of these meetings is to assess a feasible pace for scaling back its purchases of Japanese Government Bonds.

Japan’s Ministry of Finance reported on Monday that Japanese investment trust management companies and asset management firms bought ¥6.16 trillion ($38 billion) more in offshore equities and investment fund shares than they sold during the first six months of the year.

Rabobank FX analysts note that they expect USD/JPY to hold around the 160 level over the next month, with the pair easing back to 152 by year-end. "The US Dollar (USD) could remain under pressure in the coming weeks, allowing USD/JPY to stay close to 160."

On Monday, the Bank of Japan (BOJ) maintained its economic assessment for five of Japan's nine regions in its latest 'Sakura Report'. The assessment for two regions was raised, while it was lowered for another two regions in the report released on Monday. Regarding price trends, the BOJ noted that many regions report wage hikes spreading among smaller firms.

Japan's Current Account surplus extended its growth streak to the 15th month in May. The Ministry of Finance reported on Monday that the current account increased to ¥2,849.9 billion ($17.78 billion) in May, up from ¥2,050.5 billion in the previous month, surpassing market expectations of ¥2,450.0 billion.

US Nonfarm Payrolls (NFP) increased by 206,000 in June, following a rise of 218,000 in May. This figure surpassed the market expectation of 190,000.

The Minutes from the Federal Reserve's June 11-12 monetary policy meeting, released on Wednesday, suggested that Fed officials were in a wait-and-see mode. "Some participants emphasized the Committee’s data-dependent approach, with monetary policy decisions being conditional on the evolution of the economy rather than being on a preset path.

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