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The 5 Most Upgraded Stocks From Q2 Earnings Reporting Season

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Upgraded stocks 2023

Key Points

  • The Most Upgraded Stocks list is a good place to find stocks the market is buying. 
  • The rankings have changed opening new opportunities for investors. 
  • AI remains a key theme for Q3 and the 2nd half and these stocks stand to make the biggest gains. 
  • 5 stocks we like better than NVIDIA

The Q2 earnings reporting is all but finished, and the analysts have decided who the winners are. The most obvious takeaway from Marketbeat’s Most Upgraded Stock list is that the rankings changed. Last quarter's winners are losing ground to the next batch of stocks that could produce solid gains for investors.

That said, last quarter’s winners continue to shine (if with lower ranking) and should produce solid results in Q3 and for the year. 

NVIDIA Takes 1st Spot! 

As surprising as it is, NVIDIA NASDAQ: NVDA was not the most upgraded stock from Q1 reporting or over the summer, but that has changed. The jaw-dropping Q2 guidance was exceeded and came with another jaw-dropping guide that sparked enough upgrades to lang NVDA firmly in 1st position. 

The company has 39 analysts with current ratings, and they’ve all made at least 1 revision over the last 3 months. The consensus sentiment is still a Moderate Buy, but it is edging higher and on the verge of becoming a solid Buy while the price target trends higher. The price target is about 20% above the current action, leading the market higher, but that is a cautious target. 

Every analyst revision following the Q2 results was upward to a level above the consensus target. The new high target implies another 40% upside on top of the broad consensus, which will probably get topped later in the year. NVIDIA has emerged as the sole winner regarding AI chipsets and data center demand, where the growth is now. The story with NVIDIA is that over a trillion dollars of infrastructure is on track to be replaced with newer, faster, more powerful chipsets, and the revolution has only just begun. 

Nvidia stock chart

Meta Platforms: Efficiency And Growth, Oh My! 

Meta Platforms NASDAQ: META got the analysts' attention early this year when CEO Mark Zuckerburg announced a year of efficiency—the year of efficiency resulted in some better-than-expected bottom-line results that were compounded by an improvement in ad spending. The Q2 results blew the consensus out of the water, resulting in numerous upward revisions but insufficient for keeping the stock in the #1 position. Meta Platforms falls to #2 on the Most Upgraded List but remains 1 of the most closely watched and covered stocks, with 52 analysts following it. 

Like NVIDIA, Meta is being led upward by the analysts. The consensus rating assumes about 10% of upside, but this figure is trending solidly higher, and nearly 100% of the targets set since June are above consensus. Most are in the range of $350, which implies another 12% upside. 

Meta stock chart

Amazon Stands Tall, Moves Up to 3rd Position 

Amazon NASDAQ: AMZN fell from grace over the past year but bottomed in the first half of 2023 and is heading higher now. Switching to a new CEO and sluggishness in consumer and enterprise markets played a role, but the times have changed. The new CEO leaned into efficiency to drive solid bottom-line results in Q2, and the company gave guidance favorable to investors. Growth is underpinned by AWS, which is benefitting from data center and AI demand and consumer demand in the US and internationally. Analysts see this stock gaining 21% from current levels, and the consensus is trending higher. 

Amazon stock chart

DraftKings: This Stock Is In A Kingly Updraft

DraftKings (NASDAQ DKNG) results are underpinned by growth and maturing markets that aid leverage and margin. The company’s Q2 results included a surprise profit and guidance for profitability that has it reaching that important threshold several quarters ahead of consensus. The stock is followed by 31 analysts with ratings tracked by Marketbeat; they’ve all issued at least 1 revision in Q2, including upgrades and higher price targets, placing DKNG in 4th position on the Most Upgraded Stocks list. The consensus sentiment has moved back to Buy from Hold with a price target 15% above the current action. More importantly, all recent targets are above the consensus, putting the stock in the $35 to $45 range. 

DraftKings stock chart

Adobe: Building A House of AI 

Adobe NASDAQ: ADBE is firmly cemented as a fundamental player in AI. Its cloud-driven business, the ubiquitous interface, the plethora of data it generates, and AI services make it a total package for AI. Its business will be supported by developing AI models and AI-powered services for enterprises, businesses, and consumers. The stock is 5th on the Most Upgraded Stocks list with 33 revisions. This stock is rated a Moderate Buy with a price target that assumes fair value at current levels, but there is a caveat. The caveat is that the fresh targets have this stock trading 15% to 25% higher. 

Adobe stock chart

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Should you invest $1,000 in NVIDIA right now?

Before you consider NVIDIA, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list.

While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Thomas Hughes
About The Author

Thomas Hughes

Contributing Author

Technical and Fundamental Analysis

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Adobe (ADBE)
4.9273 of 5 stars
$458.74-0.2%N/A43.86Moderate Buy$600.97
DraftKings (DKNG)
3.5689 of 5 stars
$38.98+0.2%N/A-33.03Moderate Buy$49.00 (AMZN)
4.5736 of 5 stars
Meta Platforms (META)
3.7477 of 5 stars
$504.10-0.9%0.40%28.95Moderate Buy$510.41
4.5864 of 5 stars
$129.61+3.5%0.03%75.80Moderate Buy$116.90
Compare These Stocks  Add These Stocks to My Watchlist 

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