The first trading week of October kicked off Monday, Oct. 5, with a wave of analyst ratings and price target updates. September is the final month of the third quarter, and many stock analysts like to reposition ahead of Q3 results, which will begin trickling out over the upcoming weeks. But one thing that stood out amongst the new calls was a trio of upgrades to some of the market’s shakiest stocks. These companies haven’t just been beaten down; the market has left them behind due to seemingly fatal fundamental flaws.
For online sportsbook DraftKings Inc. (NASDAQ: DKNG), its prediction markets are taking market share and forcing the company to cannibalize its own client base. Motorcycle manufacturer Harley-Davidson Inc. (NYSE: HOG) is a declining business that’s losing young buyers and has no plan to win them back. And Estee Lauder Companies Inc. (NYSE: EL) is handcuffed by stagnating sales in China. But a handful of analysts are bucking these bear cases with upgrades and higher price targets. With all three companies reporting Q3 earnings in the first week of November, we won’t have to wait long to see whether these contrarians called it right.
