Inflation started taking off last year and is now near 40-year highs. Last week, the world’s major central banks took a pivot toward an anti-inflationary policy stance, bumping up interest rates in a move that was expected but also a cause for concern. While the prospect of central bank action to tame inflation is a net positive, the required interest rate bumps could also push the economy into recession.
In the meantime, investors are busy waiting. Waiting for the next Fed move, and waiting for the next data release, and waiting to see what will happen in the coming months. According to Sameer Samana, senior global market strategist at Wells Fargo, “If we’ve seen the worst of the rate of change from long-term interest rates, it may create room for equities to do a little bit better.”
Taking this into consideration, our attention turned to two stocks that Wells Fargo thinks have solid growth prospects, with the firm’s analysts forecasting at least 50% upside potential for each. Using TipRanks’ database, we found out both tickers also sport a “Strong Buy” consensus rating from the rest of the Street. Let’s take a closer look.
Match Group (MTCH)
The first Wells Fargo pick is a Texas-based company in the online dating field, Match Group. This tech firm owns and operates an active portfolio of online dating and matching services, including leading names like Tinder, Match.com, and OKCupid. Match Group boasts an enormous reach, from the online world to the real world, with apps that have been downloaded over 750 million times – and with 40% of all interpersonal relationships in the US starting online, Match Group’s total addressable market is substantial.
While Match Group has had a long run of success, the company is now coping with coming changes. Earlier this month, the company announce that long-time CEO Shar Dubey is resigning after 16 years of service. Dubey will be succeeded by Bernard Kim, who comes to Match Group from the social gaming firm Zynga.
Match Group controls the highest grossing, most downloaded dating app in the world,…