Stocks slipped Tuesday, continuing a downward trend as fears of even higher rates and a looming recession sparked a sell-off during the previous session.
Markets are largely expecting a 50 basis point rate hike at the Fed's December meeting, but remain conflicted over how long the central bank's interest rate hiking campaign will need to last. Analyst Sharon Zackfia named the coffee retailer among the firm's top picks for the upcoming year in a note to clients Monday, saying that the stock is poised to offer strong earnings and sales upside in 2023.
Another top pick of William Blair for 2023 is BJ's Wholesale, whose warehouse model is well-situated in a murky macro environment and the ongoing consumer search for value. In a note to clients Tuesday, analyst John Kim called the cut a "prudent move" as the company faces a weakening office leasing market. While earnings should recover in 2024, Kim is somewhat skeptical given the ongoing market uncertainties.