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Top Wall Street analysts pick these five stocks for the long term

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A line of shoppers wait to enter BJ’s Wholesale Club market at the Palisades Center shopping mall during the coronavirus outbreak in West Nyack, New York, March 14, 2020.

Mike Segar | Reuters

Concerns about a bank crisis have added to the woes of investors, who were already burdened with stubbornly high inflation and fears of an economic slowdown.

Given the ongoing uncertainty, turning to stock market experts to pick attractive stocks for the long term could be a good decision.

Here are five compelling stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their track records.

Allegro MicroSystems

Allegro Microsystems (ALGM) develops sensing and power semiconductor solutions for motion control and energy-efficient systems. On Tuesday, the company held its inaugural analyst day to provide insights into its strategy and technology.  

Needham analyst Quinn Bolton noted that at the event, management focused on the rapidly growing opportunities across two “secular megatrends” – electrification (mainly e-mobility) and industrial automation. Allegro expects to flourish in these two key markets and to deliver low-double-digit percentage revenue growth from fiscal 2023 to 2028.

Bolton thinks that his margin estimates for fiscal 2024 and 2025 seem conservative, given Allegro’s new long-term model that targets a gross margin of more than 58% and an operating margin of over 32%. He highlighted that the company’s e-mobility serviceable available market is expected to grow at a 25% compound annual growth rate to $3.9 billion by fiscal 2028.

“ALGM’s portfolio is aligned with the industrial secular growth trends in clean energy and automation,” said Bolton. Allegro expects its clean energy and automation SAM to grow at an 18% CAGR to $3.5 billion by fiscal 2028. (See Allegro Insider Trading Activity on TipRanks)

Impressed by Allegro’s growth prospects, Bolton raised his price target to $50 from $42 and reaffirmed a buy rating. Remarkably, Bolton ranks 2nd out of more than 8,000 analysts followed on TipRanks. His ratings have been profitable 67% of the time, generating a 36.3% average return.

CrowdStrike

Recent results of several cybersecurity companies, including CrowdStrike (CRWD), have reflected resilient demand. Enterprises are moderating their IT spending due to macro pressures but continue to allocate decent budgets to cybersecurity due to growing cyber attacks.

CrowdStrike’s adjusted earnings per share for the fourth quarter of fiscal 2023 (ended Jan. 31) increased 57%, fueled by revenue growth of 48%. At the end of the fiscal fourth quarter, the company’s annual recurring revenue stood at $2.56 billion, reflecting 48% year-over-year growth.

TD Cowen analyst Shaul Eyal attributed CrowdStrike’s upbeat performance to solid execution and robust demand for the company’s Falcon platform. Eyal added that the company is collaborating with Dell to deliver its Falcon platform to Dell’s customers through various avenues.

“We believe CRWD is positioned to achieve its goals of generating ending ARR of $5B by the end of FY26 and of reaching its target operating model in FY25,” said Eyal. He reiterated a buy rating on CrowdStrike with a price target of $180.

Eyal is ranked No. 14 among more than 8,000 analysts tracked on TipRanks. His ratings have been profitable 66% of the time, with each rating delivering a return of 23.7%, on average. (See CrowdStrike Stock Chart on TipRanks)

Oracle

Next on our list is enterprise software giant Oracle (ORCL), which delivered mixed results for the third quarter of fiscal 2023 (ended February 28, 2023). The company’s adjusted EPS grew 8% and came ahead of Wall Street’s expectations, while revenue growth of 18% fell short of estimates.

Nonetheless, Oracle is optimistic about the solid potential of its cloud business, which delivered 45% revenue growth in the fiscal third quarter. Further, management stated that Cerner, a healthcare technology company acquired in June 2022, has increased its healthcare contract base by about $5 billion. 

Monness, Crespi, Hardt, & Co. analyst Brian White said Oracle delivered “respectable 3Q:FY23 results in a treacherous environment.” He contends that the company’s cloud business continues to navigate ongoing challenges better than the leading public cloud vendors, who reported notable deceleration in revenue growth.

White cautioned investors that the “darkest days” of the economic downturn are ahead of us. That said, he reiterated a buy rating on Oracle with a price target of $113, saying, “Oracle represents a high-quality, value play with the opportunity to participate in a compelling cloud transformation and gain exposure to digital modernization initiatives in the healthcare industry.”

White holds the 50th position among more than 8,000 analysts on TipRanks. Additionally, 64% of his ratings have been profitable, with an average return of 18%. (See Oracle Blogger Opinions & Sentiment on TipRanks)

BJ’s Wholesale Club   

Warehouse club chain BJ’s Wholesale Club (BJ) continues to perform well even as the macro backdrop is getting tougher and pandemic-induced tailwinds have faded. The company recently held its fourth-quarter earnings call and first-ever investor day.

Baird analyst Peter Benedict, who ranks 129th on TipRanks, noted that the company’s membership base is “stronger than ever.” Membership fee income grew 10% in fiscal 2022 (ended January 28, 2023), driven by a 7% increase in members to 6.8 million, a rise in higher-tier penetration and solid renewal rates. It’s worth noting that BJ’s hit its all-time-high tenured renewal rate of 90% for the year.   

“With a structurally advantaged business model, growing/increasingly loyal membership base and emerging unit growth runway, BJ has the fundamental building blocks of a compelling long-duration consumer staple growth story,” explained Benedict. (See BJ’s Wholesale Financial Statements on TipRanks)   

Benedict increased the price target for BJ stock to $90 from $85 and reiterated a buy rating based on multiple strengths, including a solid balance sheet, free cash flow generation and efforts to enhance assortment. His ratings have been profitable 64% of the time, with an average return of 13.4%.

Stryker

Medical devices giant Stryker (SYK) has built a solid business over the years through strategic acquisitions and continued innovation in its medical and surgical, neurotechnology, and orthopaedics and spine divisions.

BTIG analyst Ryan Zimmerman recently hosted a fireside chat with Spencer Stiles, group president of Stryker Orthopaedics and Spine business and Jason Beach, vice president of investor relations. He highlighted that orthopedics procedure volumes are benefiting from a backlog that is projected to last about four to six quarters, as patients who postponed care previously are returning.

Zimmerman thinks that “SYK retains its growth leadership position in orthopedics even as competitive robotic systems iterate.” He expects Stryker’s new Mako Knee 2.0 software, the Insignia Hip launch and upcoming robotic launches in shoulder and spine in fiscal 2024 could “support a long and robust growth cycle.”

Zimmerman reiterated a buy rating on Stryker with a price target of $281. The analyst ranks 657 out of more than 8,300 analysts on TipRanks, with a success rate of 45%. Each of his ratings has delivered an average return of 8.9%. (See Stryker Hedge Fund Trading Activity on TipRanks)

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Top analysts are bullish on these five stocks in uncertain times

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Clifton Pemble, President and CEO, Garmin at the NYSE December 7, 2021.

Source: NYSE

Investors have no shortage of worries, be it the economy slipping into a recession due to higher interest rates or the havoc that whiplashed financial stocks last week.

Nevertheless, there are buying opportunities for those who know where to look.

Here are five stocks to weather the storm, according to Wall Street’s top professionals on TipRanks, a platform that ranks analysts based on their past performance.

Snowflake

Cloud companies are experiencing a marked slowdown in their growth rates as macro challenges affect enterprise spending. Despite the ongoing pressures, cloud-based data warehouse company Snowflake (SNOW) delivered upbeat quarterly results.

Snowflake expects its product revenue to grow by 40% in fiscal 2024, marking a deceleration from the 70% rise recorded in fiscal 2023 (ended Jan. 31, 2023). Nonetheless, Snowflake continues to be optimistic about its growth in the years ahead and expects to achieve its product revenue target of $10 billion in fiscal 2029.

Deutsche Bank analyst Brad Zelnick agrees that Snowflake is “not immune from cloud growth moderation.” (See Snowflake Blogger Opinions & Sentiment on TipRanks)

That said, Zelnick reiterated a buy rating on Snowflake with a price target of $170, saying, “We still firmly believe the long-term outlook remains intact for Snowflake, with its unique multi-cloud architecture, rich platform features, data sharing capabilities and native app development tools positioning it to capture the massive Data Cloud opportunity.”

Zelnick ranks 85th out of more than 8,000 analysts followed on TipRanks. His ratings have been profitable 69% of the time, generating a 14.9% average return.

Salesforce

Let’s move to another cloud company, Salesforce (CRM), which recently reported solid results for the fourth quarter of fiscal 2023 (ended Jan. 31, 2023). The company expects fiscal 2024 revenue to grow by about 10%. While that number indicated a slowdown compared to the 18% growth seen in fiscal 2023, it did come in ahead of analysts’ estimates.

Moreover, Wall Street experts welcomed the company’s profitability projections. Salesforce has been under pressure from several activist investors, including Elliott Management and Starboard Value, to improve its profitability. (See Salesforce Insider Trading Activity on TipRanks)

Mizuho analyst Gregg Moskowitz, who holds the 264th position among more than 8,000 analysts on TipRanks, said that he is “encouraged by the recent activism in CRM over recent months.” The analyst also highlighted the company’s restructuring efforts and its fiscal 2024 operating margin outlook of 27%, which he observed was “even well above the most bullish expectations.”

“Notwithstanding macro challenges, we reiterate that CRM remains well situated to help its vast customer base manage revenue and process optimization via digital transformation,” said Moskowitz.    

Moskowitz reaffirmed a buy rating and raised his price target for CRM stock to $225 from $200. Per TipRanks, 55% of Moskowitz’s ratings have generated profits, with each rating bringing in a return of 13.1%, on average.

Hibbett

Next on our list is athletic goods retailer Hibbett (HIBB), which sells footwear, apparel and equipment from top brands like Nike and Adidas. The company’s fiscal 2023 fourth-quarter results missed expectations due to macro pressures, higher costs, supply chain issues and increased promotional activity.

Hibbett expects mid-single-digit sales growth in fiscal 2024, driven by its assortment of high-demand footwear. Also, the company is conducting a “systematic review” of its operating expense structure to improve profitability. (See Hibbett Stock Chart on TipRanks)

Williams Trading analyst Sam Poser highlighted that Hibbett’s relationships with key brands, mainly Nike, are very strong. Additionally, the analyst thinks that the retailer has “the best in class omni-channel, consumer facing operation” in his coverage, which is reflected by the 21.4% rise in digital sales in the fiscal fourth quarter.

Poser lowered his fiscal 2024 and fiscal 2025 earnings per share estimates, given that the company’s recent results lagged guidance. Nonetheless, he reiterated a buy rating on Hibbett and a price target of $82 because he is “confident that HIBB’s guidance is far more realistic, prudent, and conservative than it has been in some time.”

Poser is ranked No. 144 among more than 8,000 analysts tracked on TipRanks. His ratings have been profitable 55% of the time, with each rating delivering a return of 17.6%, on average.

Zscaler

Cybersecurity company Zscaler‘s (ZS) fiscal second-quarter results crushed the Street’s expectations, with a 52% increase in revenue.

Nevertheless, ZS stock fell as investors seemed concerned about the company’s billings guidance of about a 9% sequential decline in the fiscal third quarter, compared to the mid-single digit declines seen over the last few years. Delays in large deals due to macro woes impacted the company’s outlook.

TD Cowen analyst Shaul Eyal remains bullish about Zscaler and reiterated a buy rating with a price target of $195 following the results. “In our view, despite macro uncertainty and elevated deal scrutiny, ZS occupies a strong competitive position as it addresses a $72B market opportunity,” said Eyal.      

The analyst thinks that the company is well positioned to achieve its longer-term targets, including annual recurring revenue of $5 billion, operating margin of 20% to 22%, and free cash flow margin of 22% to 25%. (See Zscaler Hedge Fund Trading Activity on TipRanks)

Eyal holds the 15th position among more than 8,000 analysts on TipRanks. Additionally, 66% of his ratings have been profitable, with an average return of 24.1%.

Garmin

Garmin (GRMN) is a leading provider of GPS-enabled-based devices and applications. Last month, the company reported a decline in its fourth-quarter revenue due to currency headwinds and lower demand for its fitness products.

Tigress Financial analyst Ivan Feinseth expects the company’s ongoing innovation and new launches, strength in aviation, and growing opportunities in wellness and automotive OEM (original equipment manufacturer) businesses to reaccelerate trends.  

Feinseth is particularly confident about Garmin emerging as an industry-leading automotive OEM supplier. The company’s automotive OEM revenue increased by 11% to $284 million in 2022. The analyst expects the automotive segment to see annual growth of 40%, reaching a revenue run rate of $800 million by 2025. He expects this growth to be led by the company’s industry-leading product categories of in-cabin domain controllers, infotainment systems and other in-cabin connected interfaces.

Feinseth, who ranks 189th on Tipranks, reiterated a buy rating on Garmin stock with a price target of $165. The analyst’s ratings have been profitable 62% of the time, with an average return of 12.2%. (See Garmin Financial Statements on TipRanks)

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Top Wall Street analysts pick these stocks for attractive returns

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NVIDIA President and CEO Jen-Hsun Huang

Robert Galbraith | Reuters

Recession risk is on the minds of investors, particularly as the Federal Reserve remains resolute in hiking interest rates.

In these tough times, investors would be well advised to find stocks that are positioned to navigate a potential economic downturn.

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To help with the process, here are five stocks chosen by Wall Street’s top professionals, according to TipRanks, a platform that ranks analysts based on their past performance.

Nvidia

Chip giant Nvidia (NVDA) has been under pressure due to the slump in the PC gaming market. Revenue and earnings declined in the fiscal fourth quarter compared to the prior year, but the company managed to beat Wall Street’s expectations due to the year-over-year rise in data center revenues.

Investors cheered Nvidia’s first-quarter revenue guidance and CEO Jensen Huang’s commentary about how the company is well-positioned to benefit from the heightened interest in generative artificial intelligence (AI).   

Jefferies analyst Mark Lipacis expects Nvidia’s data center revenues to reaccelerate year-over-year beyond the first quarter and grow 28% in 2023 and 30% in 2024, supported by higher AI spend. (See Nvidia Stock Chart on TipRanks) 

Lipacis said, “In contrast to INTC/AMD noting cloud inventory builds, NVDA discussed a positive H100 ramp (already crossing over A100 in just second quarter after launch), accelerating DC [data center] revs YY beyond C1Q23, and alluded to better visibility and more optimism for the year due to increasing activity around AI infrastructure, LLMs [large language models], and generative AI.”

The analyst views Nvidia as a “top pick” following the recent results, and reiterated a buy rating. He raised the price target for NVDA stock to $300 from $275.

Lipacis is ranked No. 2 among more than 8,300 analysts on TipRanks. His ratings have been profitable 73% of the time, with each rating delivering a return of 27.6%, on average.

Ross Stores

Ross Stores (ROST) delivered upbeat results for the fourth quarter of fiscal 2022, as the off-price retailer’s value offerings continued to attract customers. However, the company issued conservative guidance for fiscal 2023 due to the impact of high inflation on its low-to-moderate income customers.

Following the results, Guggenheim analyst Robert Drbul, who is ranked 306th among the analysts on TipRanks, lowered his fiscal 2023 earnings per share estimate for Ross Stores to reflect the impact of persistent macro headwinds.

Nonetheless, he expects Ross Stores’ earnings to return to double-digit growth in fiscal 2023, driven by a higher operating margin, the accelerated opening of new stores and the company’s share buyback program.

Drbul reiterated a buy rating for Ross Stores and a price target of $125, citing “the favorable environment for the company given greater supply of branded goods in the marketplace, stronger value proposition, and broader assortment compared to pandemic levels.”

Drbul has delivered profitable ratings 63% of the time, and his ratings have generated an average return of 9.1%. (See Ross Stores Hedge Fund Trading Activity on TipRanks)

Kontoor Brands

Next on our list is another consumer discretionary company – Kontoor Brands (KTB), which owns the iconic Wrangler and Lee Brands. Shares of the clothing company rallied on the day it reported solid fourth-quarter results and issued a strong outlook for 2023.   

Williams Trading analyst Sam Poser noted that the demand for Wrangler and Lee continues to improve, fueled by the company’s brand-enhancing initiatives. Further, he thinks that Kontoor’s fiscal 2023 outlook “will likely prove conservative.” He expects the company’s revenue growth in China to turn positive in the second quarter and sequentially accelerate thereafter.

Poser raised his fiscal 2023 and 2024 earnings per share estimates, reiterated his buy rating for Kontoor Brands and increased the price target to $60 from $53. (See Kontoor Brands Insider Trading Activity on TipRanks)

“The combination of better than expected 4Q22 results, led by a 20% increase in U.S. DTC [direct-to-consumer] revenue, ongoing improvements in the positioning of both the Wrangler & Lee brands, and reasonable guidance, are indicative of ongoing improvements in KTB’s consumer facing capabilities and its overall operations,” said Poser.  

Poser is ranked 134th among the analysts tracked by TipRanks. Further, 55% of his ratings have been successful, generating a return of 17.7%, on average.

Fiserv

Fiserv (FISV), a provider of payments and financial services technology solutions, is also on our list this week. Last month, the company announced its fourth-quarter results and assured investors about being well-poised to deliver its 38th consecutive year of double-digit adjusted earnings per share growth, supported by recent client additions, solid recurring revenue and productivity efforts.

Tigress Financial analyst Ivan Feinseth noted that Fiserv continues to experience strong business momentum, thanks to the performance of its payments product portfolio and the strength in Clover, the company’s cloud-based point-of-sale and business management platform. (See Fiserv Financial Statements on TipRanks)

“FISV’s diversified product portfolio and industry-leading technology position it at the forefront of the ongoing secular shift to electronic payments and the growing use of connected devices to deliver payment processing services and financial data access,” said Feinseth. The analyst reiterated a buy rating for FISV stock and raised the price target to $154 from $152.

Feinseth holds the 176th position among more than 8,300 analysts tracked on the site. Moreover, 62% of his ratings have been profitable, his ratings generating an average return of 12.3%.

Workday

Workday (WDAY), a provider of cloud-based finance and human resources applications, issued a subdued outlook for fiscal 2024, which overshadowed better-than-anticipated results for the fourth quarter of fiscal 2023.

Baird analyst Mark Marcon noted that Workday continues to gain market share in human capital management and financial management solutions in the enterprise space, though its pace of growth ahead is “slightly tempered by macro uncertainty.”

Marcon also noted that despite elongated enterprise sales cycles due to macro pressures, Workday gained seven new Fortune 500 and 11 new Global 2000 customers in the fiscal fourth quarter. The analyst said that the new co-CEO Carl Eschenbach is “quickly making a mark on WDAY” and that the company is expected to reaccelerate subscription revenue growth to the 20% level once the macro backdrop is normalized.

“While our near-term expectations are more muted, we believe the valuation relative to the long-term potential continues to be attractive considering WDAY’s high net revenue retention (over 100%), high GAAP gross margins, strong FCF [free cash flow] and strong growth potential given financials moving to the cloud,” said Marcon.

The analyst slightly lowered his price target for Workday stock to $220 from $223 to reflect near-term pressures. He reiterated a buy rating, given the company’s long-term growth potential.

Marcon ranks 444th out of the analysts followed on TipRanks. His ratings have been profitable 60% of the time, generating a 13.5% average return. (See Workday Blogger Opinions & Sentiment on TipRanks)

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Top Wall Street analysts expect these stocks to thrive despite macro pressures

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An EV600 all-electric light commercial vehicle purpose-built for the delivery of goods and services, built by GM’s electric commercial vehicle business, BrightDrop, is seen in Detroit, Michigan, in this undated photograph.

Brightdrop | Handout | via Reuters

Layoff announcements and warnings of an economic downturn from multiple CEOs during the earnings season have made it difficult to look beyond the ongoing turmoil and pick good stocks for the long term. 

To help with the process, here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their track records.

Walmart

Walmart (WMT) topped analysts’ expectations for the fiscal fourth quarter as budget-conscious customers preferred to shop at the big-box retailer due to its lower-price offerings. However, it issued a subdued sales outlook, as stubbornly high inflation continues to impact spending on discretionary items.

Nonetheless, Guggenheim analyst Robert Drbul noted that Walmart is starting the new fiscal year on “solid competitive and operational footing.” The analyst also highlighted the retailer’s market share gains in grocery, growth in private brands and the improvement in inventory levels.

“We continue to believe Walmart is well positioned in an uncertain macro environment, with its price and value proposition and with increased convenience and assortment, despite persistent indicators of pressure on the consumer, including stubborn food inflation,” Drbul said.

The analyst also thinks Walmart can gain more business from higher income families “because the company has made strides in pickup, delivery, and membership.” Drbul reiterated a buy rating on Walmart and a price target of $165.

Drbul ranks 247th among over 8,300 analysts on TipRanks. Moreover, 65% of his ratings have been successful, with each generating a 9.8% average return. (See Walmart Hedge Fund Trading Activity on TipRanks.)

Crocs

Casual footwear maker Crocs (CROX) is seeing robust demand for its products despite difficult macro conditions. Its fourth-quarter revenue surged 61%, reflecting organic growth and the momentum of the Heydude brand, which the company acquired in 2022.  

While Crocs acknowledges the macro headwinds affecting it, it is confident about achieving a record 2023, fueled by demand for its sandals, international growth potential of the Crocs brand and higher market penetration of the Heydude brand in the U.S.

Reacting to the results, Baird analyst Jonathan Komp commented, “The Q4 update included multiple positive developments, including stronger-than-expected Q4 EBIT margin performance, continued robust brand momentum, and reassuring 2023E EPS guidance which is front-weighted and includes multiple areas of conservatism.”

Komp raised his 2023 and 2024 earnings per share estimates, stating that Crocs remains a “favorite idea” at current valuations, given the company’s multiyear growth potential. He reiterated a buy rating and increased his price target to $175 from $155.      

Komp holds the 386th position out of more than 8,300 analysts followed on TipRanks. His ratings have been profitable 54% of the time, with each rating generating a 13.8% average return. (See Crocs Blogger Opinions & Sentiment on TipRanks)

The Chefs’ Warehouse

Another company that has displayed strength amid difficult conditions is Chefs’ Warehouse (CHEF), a distributor of specialty food products. It distributes over 55,000 products to more than 40,000 locations in the U.S. and Canada.

Chefs’ Warehouse’s fourth-quarter adjusted earnings per share surged nearly 85% year over year, driven by robust sales and improved margins. The company has been boosting its business through organic growth and key acquisitions. In the fourth quarter, the company acquired Chef Middle East, which helped it expand into new markets like United Arab Emirates, Qatar and Oman.

Following the fourth-quarter results, BTIG analyst Peter Saleh reiterated a buy rating and “Top Pick” designation on CHEF, with a price target of $48. Saleh, who ranks 346 out of 8,341 analysts tracked by TipRanks, thinks that “continued sales and earnings progression builds out the company’s favorable long-term potential.”

Saleh noted that the company is “still undervalued given the consistent growth it is achieving.” He also pointed out that investors misunderstood the recent convertible notes issuance, stating, “We believe investors missed the technical details in the filing that place the dilution overhang much higher than the stated conversion price. In our view, this could act as a tailwind for the shares in the near-term.”

Saleh’s ratings have been profitable 65% of the time and each rating has generated a 12.5% return, on average. (See Chef’s Warehouse Stock Chart on TipRanks)

Datadog

Next on our list is cloud-based software company Datadog (DDOG), which recently reported market-beating fourth-quarter results. That said, investors were spooked by its revenue outlook for the first quarter and full year 2023. Macro uncertainties are impacting the cloud spending of Datadog’s larger customers, thus affecting its expansion rate.

Baird analyst William Power lowered his 2023 revenue estimate based on the company’s outlook. He also reduced his operating income forecast to reflect continued growth investments made by the company. (See Datadog Insider Trading Activity on TipRanks)

Nevertheless, Power remains bullish about the long-term prospects of Datadog, as the company has “one of the broadest platforms and a strong R&D engine.” The analyst also noted “strong enterprise trends,” with the company ending the fourth quarter with nearly 2,780 customers contributing annual recurring revenue of $100,000 or more, up from 2,010 customers last year.

Power maintained a buy rating on Datadog and a $100 price target. He ranks 268 among more than 8,000 analysts tracked on TipRanks. Moreover, 55% of his ratings have been profitable, with each rating generating a return of 15.5%, on average.    

Applied Materials

Applied Materials (AMAT) provides manufacturing equipment and software to makers of semiconductors, electronic devices and related industries. Despite the ongoing challenges in the semiconductor space, the company delivered better-than-expected fiscal first-quarter earnings.  

Cheering the results, CEO Gary Dickerson stated that the company’s resilience is backed by its “strong positions with leading customers at key technology inflections, large backlog of differentiated products and growing service business.”

Needham analyst Quinn Bolton increased his price target for Applied Materials to $135 from $120 and reiterated a buy rating following the recent results. Bolton noted that ICAPS (chips for IoT, Communications, Auto, Power and Sensors) “stole the show” in the report. (See Applied Materials Financial Statements on TipRanks)

“ICAPS was the main focus on the call as it was mentioned 56 times and rightfully so. AMAT has become incrementally more positive on ICAPS than it was last Q, as it is set to grow Y/Y in 2023 even in the face of China export restrictions,” Bolton said.

He further explained that the market growth of ICAPS is way higher than the leading edge chips this year due to “end market strength, higher capital intensity, and government incentives.”

Bolton’s convictions can be trusted, given that he is ranked number 1 among more than 8,300 analysts in the TipRanks database. Additionally, his track record of 70% profitable ratings, with each rating delivering an average return of 39.8%, is laudable.

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Top Wall Street analysts are bullish on these 5 stocks

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Exterior of a redesigned Chipotle restaurant

Source: Chipotle Mexican Grill

With market conditions as uncertain as they are now, it may be prudent to have a long-term approach and turn to the experts for guidance.

Here are five stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performances.

Wynn Resorts

Wynn Resorts (WYNN) reported a higher-than-anticipated adjusted loss per share for the fourth quarter. Nonetheless, investors were pleased with the management’s commentary about better times ahead, backed by continued strength in Las Vegas and the reopening of Macao following China’s stringent Covid lockdowns.

Deutsche Bank analyst Carlo Santarelli thinks that the future margin profile of Wynn Macau is “underappreciated.” Moreover, he expects the company’s financial leverage reduction to be “swift and screen well throughout 2023.”

“Given the resurgence of Macau, the continued strength and near term visibility in Las Vegas, and what we view as stability at Encore Boston Harbor, our estimates for 2023 and 2024 are higher across each of the 3 geographies,” Santarelli said.

Santarelli also noted that the stock’s valuation is reasonable, as the company is still in the early stages of the Macao recovery cycle. Santarelli reiterated a buy rating and raised his price target for Wynn to $128 from $106. (See Wynn Blogger Opinions & Sentiment on TipRanks)

Santarelli’s recommendation is worthy of consideration as he ranks 26th among more than 8,000 analysts tracked by TipRanks. Moreover, 67% of his ratings have been successful, generating a 21.7% average return per rating.

Chipotle Mexican Grill

Burrito chain Chipotle Mexican Grill’s (CMG) lower-than-anticipated fourth-quarter results reflected the impact of inflation on consumer spending. However, the company assured investors that transaction trends turned positive in 2023, setting its comparable sales growth estimate in the high-single-digit range for the first quarter.

Chipotle plans to further expand its footprint, which stood at 3,187 restaurant locations at the end of 2022. It aims to open 255 to 285 new locations in 2023.     

Baird analyst David Tarantino, who ranks 320 out of 8,346 analysts on TipRanks, lowered his 2023 earnings per share estimate following the lackluster fourth-quarter results and a lower-than-projected margin outlook for the first quarter. Nevertheless, Tarantino remains bullish on Chipotle.

“We came away with a view that management is taking the appropriate operational steps to drive structural improvements in traffic as 2023 unfolds, and we expect signs of progress on this front to help resolve the pricing/traffic debate and return the focus toward the significant economic value CMG can create via high-ROIC unit expansion,” Tarantino said

The analyst reiterated a buy rating on Chipotle stock and raised the price target to $1,900 from $1,800. Sixty-six percent of Tarantino’s ratings have generated profits, with each one bringing in a 10.6% average return. (See CMG Insider Trading Activity on TipRanks)

Meta Platforms

Social media behemoth Meta Platforms (META) is next on our list. Meta has rebounded this year after a disastrous run in 2022. Its problems last year were due to a slowdown in online advertising spend and the mounting losses of the company’s Reality Labs division — which includes its metaverse projects.  

Despite weak earnings, the stock spiked in reaction to recent results, as investors cheered Meta’s cost control measures and a $40 billion increase in its share repurchase authorization. Meta already had nearly $11 billion remaining under its existing buyback plan. 

Tigress Financial Partners analyst Ivan Feinseth highlighted that Meta’s “most valuable asset” is its huge and growing user base. Daily Active People or DAP (the number of people using at least one of the company’s core products — Facebook, WhatsApp, Instagram, or Messenger, every day) rose 5% to 2.96 billion in the fourth quarter.

Furthermore, Feinseth projects that Meta’s performance will be fueled by a “new, more cost-efficient data center structure” that is competent in supporting artificial intelligence (AI) and non-AI workloads.

Feinseth increased his price target for Meta to $285 from $260 and reiterated a buy rating as he believes it can outperform rivals due to its massive user base and the ability to generate significantly higher returns for advertisers.

Feinseth currently stands at #126 among over 8,300 analysts on TipRanks. Moreover, 65% of his ratings have been successful, with each generating a 13.5% average return. (See Meta Platforms Hedge Fund Trading Activity on TipRanks)

CyberArk Software

Digital transformation, the accelerated shift to the cloud and geopolitical tensions have triggered an increase in cyber threats, driving demand for cybersecurity companies like CyberArk (CYBR).

CyberArk, a leading cybersecurity company, has successfully transitioned from perpetual licenses to a subscription model — which has led to more reliable and predictable revenues.  

Mizuho analyst Gregg Moskowitz noted the impressive 45% growth in CyberArk’s annual recurring revenue (ARR) as of 2022’s end and ARR growth outlook in the range of 28% to 30% by the end of 2023. The analyst also pointed out that CyberArk ended 2022 with more than 1,300 customers generating over $100,000 in ARR, up 40% compared to the prior year.  

Moskowitz reiterated a buy rating on CyberArk stock and a $175 price target, saying, “We continue to view CYBR as a primary beneficiary of a heightened threat landscape that has amplified the need for privileged access and identity management.” He is also optimistic that CyberArk’s transition to a recurring revenue model will drive better financials.

Moskowitz holds the 236th position among more than 8,000 analysts on TipRanks. His ratings have a 58% success rate, with each delivering an average return of 13.8%. (See CyberArk Stock Chart on TipRanks)

Micron Technology

Semiconductor company Micron (MU) has been under pressure in recent quarters due to lower demand in several end-markets, particularly PCs. In the first quarter of fiscal 2023 (ended Dec. 1), the company’s revenue plunged 47% due to lower shipments and a steep decline in prices.

In response to tough business conditions, Micron has slashed its capital expenditure and has been taking initiatives to reduce costs. In December, the company announced that it would cut its workforce by nearly 10% in 2023 and suspend bonuses for the year. It has also suspended share repurchases for now.

Despite the ongoing challenges, Mizuho analyst Vijay Rakesh upgraded Micron to buy from hold and raised his price target to $72 from $48. Rakesh acknowledged that near-term headwinds remain due to high inventories, lower demand for PCs, handsets, servers and lower memory pricing. Nonetheless, he thinks that we are approaching a “cyclical bottom.”

Rakesh explained, “We believe memory sets up better for 2H23/2024E with supply/capex cuts, inventory correction behind, and a better pricing environment.”

Rakesh ranks 73 out of more than 8,300 analysts on TipRanks, with a success rate of 61%. Each of his ratings has delivered a 19.7% average return. (See Micron Financial Statements on TipRanks)

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Top Wall Street analysts like these stocks for the long haul

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A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019.

Shannon Stapleton | Reuters

Investors are trying to make sense of big corporate earnings, seeking clues about what lies ahead as macro headwinds persist. It’s prudent for investors to choose stocks with an optimistic longer-term view in these uncertain times.

Here are five stocks picked by Wall Street’s top analysts, according to TipRanks, a service that ranks analysts based on their past performance.

Costco

Wholesaler Costco (COST) is known for its resilient business model that has helped it navigate several economic downturns. Moreover, the membership-only warehouse club has a loyal customer base and generally enjoys renewal rates that are at or above 90%.

Costco recently reported better-than-anticipated net sales growth of 6.9% and comparable sales growth of 5.6% for the four weeks ended Jan. 29. The company delivered upbeat numbers despite continued weakness in its e-commerce sales and the shift in the timing of the Chinese New Year to earlier in the year.

Following the sales report, Baird analyst Peter Benedict reaffirmed a buy rating on Costco and a $575 price target. Benedict stated, “With a defensive/staples-heavy sales mix and loyal member base, we believe shares continue to hold fundamental appeal as a rare megacap “growth staple” – particularly in the face of a difficult consumer spending backdrop.”

Benedict’s convictions can be trusted, given his 55th position out of more than 8,300 analysts in the TipRanks database. Apart from that, he has a solid track of 71% profitable ratings, with each rating delivering 16.3% average return. (See Costco Hedge Fund Trading Activity on TipRanks)​

Amazon

2022 was a challenging year for e-commerce giant Amazon (AMZN) as macro pressures hurt its retail business and the cloud computing Amazon Web Services division.

Amazon’s first-quarter sales growth outlook of 4% to 8% reflects further deceleration compared with the 9% growth in the fourth quarter. Amazon is streamlining costs as it faces slowing top-line growth, higher expenses and continued economic turmoil.

Nonetheless, several Amazon bulls, including Mizuho Securities’ Vijay Rakesh, continue to believe in the company’s long-term prospects. Rakesh sees a “modest downside” to Wall Street’s consensus expectation for the 2023 revenue growth for Amazon’s retail business. (See Amazon Website Traffic on TipRanks)

However, he sees more downside risks to the Street’s consensus estimate of a 20% cloud revenue growth in 2023 compared to his revised estimate of 16%. Rakesh noted that Amazon’s cloud business was hit by lower demand from verticals like mortgage, advertising and crypto in the fourth quarter and that revenue growth has slowed down to the mid-teens so far in the first quarter.

Consequently, Rakesh said that AMZN stock could be “volatile near-term given potential downside revision risks.” Nonetheless, he reiterated a buy rating on AMZN with a price target of $135 due to “positive long-term fundamentals.”

Rakesh stands at #84 among more than 8,300 analysts tracked by TipRanks. Moreover, 61% of his ratings have been profitable, with each generating a 19.3% average return.

Peloton 

Fitness equipment maker Peloton (PTON), once a pandemic darling, fell out of favor following the reopening of the economy as people returned to gyms and competition increased. Peloton shares crashed last year due to its deteriorating sales and mounting losses.

Nevertheless, investor sentiment has improved for PTON stock, thanks to the company’s turnaround efforts under CEO Barry McCarthy. Investors cheered the company’s fiscal second-quarter results due to higher subscription revenue even as the overall sales dropped 30% year-over-year. While its loss per share narrowed from the prior-year quarter, it was worse than what Wall Street projected. 

Like investors, JPMorgan analyst Doug Anmuth was also “incrementally positive” on Peloton following the latest results, citing its cost control measures, improving free cash flow loss and better-than-anticipated connected fitness subscriptions. Anmuth highlighted that the company’s restructuring to a more variable cost structure is essentially complete and it seems focused on achieving its goal of breakeven free cash flow by the end of fiscal 2023.

Anmuth reiterated a buy rating and raised the price target to $19 from $13, given the company’s focus on restoring its revenue growth. (See PTON Stock Chart on TipRanks) 

Anmuth ranks 192 out of more than 8,300 analysts on TipRanks, with a success rate of 58%. Each of his ratings has delivered a 15.1% return on average.

Microsoft

Microsoft’s (MSFT) artificial intelligence-driven growth plans have triggered positive sentiment about the tech behemoth recently. The company plans to power its search engine Bing and internet browser Edge with ChatGPT-like technology.

On the downside, the company’s December quarter revenue growth and subdued guidance reflected near-term headwinds, due to continued weakness in the PC market and a slowdown in its Azure cloud business as enterprises are tightening their spending. That said, Azure’s long-term growth potential seems attractive. 

Tigress Financial analyst Ivan Feinseth, who ranks 137 out of 8,328 analysts tracked by TipRanks, opines that while near-term headwinds could slow cloud growth and the “more personal computing” segment, Microsoft’s investments in AI will drive its future.

Feinseth reiterated a buy rating on Microsoft and maintained a price target of $411, saying, “Strength in its Azure Cloud platform combined with increasing AI integration across its product lines continues to drive the global digital transformation and highlights its long-term investment opportunity.”

Remarkably, 64% of Feinseth’s ratings have generated profits, with each rating bringing in a 13.4% average return. (See MSFT Insider Trading Activity on TipRanks)

Mobileye Global 

Ivan Feinseth is also optimistic about Mobileye (MBLY), a rapidly growing provider of technology that powers advanced driver-assistance systems (ADAS) and self-driving systems. Chip giant Intel still owns a majority of Mobileye shares.

Feinseth noted that Mobileye continues to see solid demand for its industry-leading technology. He expects the company to “increasingly benefit” from the growing adoption of ADAS technology by original equipment manufacturers.  

The company is also at an advantage due to the rising demand in the auto industry for sophisticated camera systems and sensors used in ADAS and safe-driving systems. Furthermore, Feinseth sees opportunities for the company in the autonomous mobility as a service, or AMaaS, space.

Feinseth said there is potential for Mobileye’s revenue to grow to over $17 billion by 2030, backed by the company’s “significant R&D investments, first-mover advantage, and industry-leading product portfolio, combined with significant OEM relationships.” He projects a potential total addressable market of nearly $500 billion by the end of the decade.

Given Mobileye’s numerous strengths, Feinseth raised his price target to $52 from $44 and reiterated a buy rating. (See Mobileye Blogger Opinions & Sentiment on TipRanks)

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Top Wall Street analysts find these stocks compelling

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Jim Umpleby, CEO of Caterpillar Inc.

Adam Jeffery | CNBC

During these challenging times, making informed decisions with a long-term view is vital for investors.

Here are five stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their track records.

Advanced Micro Devices

Semiconductor company Advanced Micro Devices’ (AMD) fourth-quarter results surpassed Street expectations even as continued weakness in the PC market dragged down the company’s client segment revenue. Nevertheless, higher sales from the data center and embedded divisions helped offset the weakness in the client and gaming segments.

Although AMD expects its revenue in the first quarter of 2023 to decline by about 10%, CEO Lisa Su remains optimistic about the company’s ability to win market share this year.

Susquehanna analyst Christopher Rolland said the company’s client and gaming results were better than feared. However, he noted that management’s weaker data center outlook for the first half was a “surprise.”

“While sales into North American hyperscalers more than doubled in 2022, management believes cloud is now undergoing a period of digestion in 1H, returning to growth in 2H (we think helped by ramps of Genoa, Bergamo, MI300 and Pensando, all of which are on track),” explained Rolland about the data center segment guidance. (See AMD Blogger Opinions & Sentiment on TipRanks)

Overall, Rolland reiterated a buy rating for AMD with a price target of $88, saying he prefers to look beyond the uncertainty in 2023 “towards a better 2024.” Rolland’s conviction is worth trusting, given that he is ranked at the 13th position among more than 8,300 analysts tracked by TipRanks. Moreover, 72% of his ratings have been profitable, with each generating a 21% average return.

Tesla

Leading electric vehicle maker Tesla’s (TSLA) upbeat fourth-quarter results wiped out investors’ concerns about supply chain disruptions, the distraction related to Elon Musk’s Twitter acquisition, and the recently announced price cuts.

Tesla is focused on reducing costs and enhancing productivity to combat the near-term macroeconomic pressures and rising competition. Taking into account potential supply chain issues and other possible headwinds, the company issued production guidance of 1.8 million EVs in 2023, even though it has the potential to make 2 million units.

Mizuho Securities analyst Vijay Rakesh projects Tesla’s revenue will grow 29% this year and 26% in 2024. The analyst highlighted that his conservative growth estimates reflect “potentially slowing macro demand offset by secular EV transitional trends.”

Rakesh reaffirmed a buy rating and $250 price target, pointing out that Tesla has industry-leading margins and is on the path to deliver more than $10 billion in free cash flow, compared to rivals who are still at negative free cash flow. (See Tesla Hedge Fund Trading Activity on TipRanks)​

Rakesh holds the 113th position among more than 8,000 analysts tracked on TipRanks. Additionally, 60% of his ratings have been successful and have generated a 17.4% average return.

McDonald’s  

After fast-moving EVs, fast-food giant McDonald’s (MCD) is next on our list. McDonald’s topped expectations, as the restaurant chain witnessed better-than-anticipated traffic at its domestic stores in the final quarter of 2022.

McDonalds’ delivered robust comparable sales across the domestic and international markets, thanks to “strategic menu price increases” in the U.S., attractive menu offerings, and marketing campaigns like the Happy Meal offering for adults. (See McDonald’s Dividend Date & History on TipRanks)  

Despite tough macro conditions, McDonald’s intends to expand further to grab additional business. It plans to open about 1,900 restaurants, with over 400 of these locations in the U.S. and the International Operated Markets segments. The remaining restaurants will be opened by developmental licensees and affiliates.  

BTIG analyst Peter Saleh, who reiterated a buy rating and $280 price target, expects McDonald’s to gain from “moderating inflation, carryover pricing, easing lockdowns in China, and foreign exchange finally becoming a modest tailwind.”

Saleh ranks 383 out of more than 8,300 analysts on TipRanks, with a success rate of 65%. Each of his ratings has delivered a 12.3% return on average.

Mondelez International

Mondelez International’s (MDLZ) recent results reflected the advantages of being a manufacturer of resilient product categories like chocolate, cookies and baked snacks. The Oreo-brand owner delivered robust revenue growth, fueled by higher pricing, increased volumes and strategic acquisitions, including Chipita and Clif Bar.

Despite currency headwinds and higher costs, Mondelez is positive about driving “attractive growth” in 2023 and beyond by increasing its exposure to high-growth categories, cost discipline, and continued investments in iconic brands. (See MDLZ Stock Chart on TipRanks) 

J.P.Morgan analyst Kenneth Goldman, who ranks 652 out of over 8,300 analysts tracked by TipRanks, feels that it is “refreshing to see at least one company surprise to the upside” on the volumes front amid growing concerns about this key metric in the staples industry.

Given the likelihood of several food producers reporting weak volumes in the coming days, Goldman said it could “become increasingly important to own stocks of companies with (a) relatively inelastic categories, (b) strong and unique brands with limited private label competition, and (c) a commitment to continually spending behind their brands.”

In line with his bullish stance, Goldman reiterated a buy rating and increased his price target to $74 from $71. It’s worth noting that 61% of his ratings have been successful, generating a 9.3% average return.  

Caterpillar

Construction and mining equipment maker Caterpillar (CAT) ended 2022 with a double-digit increase in revenue in the fourth quarter, driven by steady demand and higher pricing. However, investors seemed concerned about the impact of rising input costs and the strengthening U.S. dollar on the company’s bottom line.

Furthermore, Caterpillar’s warning about weaker China demand in 2023 didn’t go down well with the shareholders. Nonetheless, the company is optimistic about higher overall sales and earnings this year due to healthy demand across its segments.

Jefferies analyst Stephen Volkmann reaffirmed a buy rating following the Q4 print and maintained a price target of $285. Volkmann called the company’s pricing strength as “the standout positive.”

The analyst also noted that the demand for Caterpillar’s products remains strong, as indicated by a $400 million rise in the order backlog in the fourth quarter on a sequential basis. (See Caterpillar’s Insider Trading Activity on TipRanks) 

Volkmann’s recommendations are worth paying attention to, given that he stands at the 51st position out of 8,300 plus analysts tracked by TipRanks. Remarkably, 69% of Volkmann’s ratings have generated profits, with each rating bringing in a 19.9% average return.

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Top Wall Street analysts like these stocks for maximum returns

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A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022.

Benoit Tessier | Reuters

As the earnings season rolls on, many companies are hinting at a challenging year ahead.

Meanwhile, it can be intimidating to invest in such a stressful environment. To ease the process, here are five stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performances. 

Alphabet 

After languishing in the stock market last year due to numerous factors affecting the tech sector, Alphabet (GOOGL) will report its seasonally weakest quarter of the year on Thursday. From relatively low digital ad spending and regulatory crackdowns on digital ads to increasing costs and interest rates, Google endured it all. Needless to say, the company expects sequential growth deceleration in the fourth quarter. 

Nonetheless, Monness, Crespi, Hardt, & Co. analyst Brian White expects the results to be in line with his expectations. The analyst anticipates a 10% sequential sales increase, implying a quarter-over-quarter deceleration in growth. This is notably lower growth than what is usually expected of a typical Alphabet fourth-quarter report (17% on average in the past four December quarters).  

However, although Google Advertising revenue growth was significantly hurt by the slowdown in digital ad spending, White notes that “Alphabet proved more resilient than Meta and Snap that were   disproportionately impacted by Apple’s privacy initiatives, most notably App Tracking Transparency, along with other factors.” 

The analyst expects year-over-year digital ad spending comps to improve in the second half of the year. Also, White’s estimates suggest that Google Ad revenues should return to growth in the second quarter of 2023. (See Alphabet Blogger Opinions & Sentiment on TipRanks) 

White reiterated a buy rating on the stock with a price target of $135. The analyst holds the 66th position among almost 8,300 analysts followed on TipRanks. His ratings have been profitable 64% of the time, and each rating has generated an 18% average return.

Meta Platforms 

Another technology name in Brian White’s list is Meta Platforms (META), which is scheduled to report its fourth-quarter earnings on Wednesday “after taking a savage beating in 2022,” according to the analyst’s words. 

The headwinds that the company faced last year, including Apple’s privacy initiatives with App Tracking Transparency, the slowdown in advertisement spending, exorbitant investments in the metaverse, and regulatory scrutiny, are not expected to entirely dissipate in 2023. (See Meta Platforms Website Traffic on TipRanks) 

Over the past 52-weeks, Meta shares were cut nearly in half. Gains in early 2023, are helping to trim last year’s losses.

However, a leaner cost structure, thanks to its significantly downsized business and other initiatives, as well as softening challenges, will be a relief this year. Additionally, in the long run, White expects Meta to benefit from the secular digital ad trend and innovations in the metaverse.  

“With sales up 34% per annum over the past five years, EPS turning in a 32% CAGR and generating an   attractive operating margin, we believe Meta Platforms should trade at a premium to the market and tech sector in the long run; however, we expect the current macroeconomic and geopolitical environment will weigh on advertising spending in the coming quarters,” observed White, who reiterated a buy rating on the stock with a price target of $150. 

WNS 

India-based business process management company WNS (WNS) is next on our list. The company’s solid sales pipeline reflects a healthy demand environment that overshadows economic headwinds. This gives Barrington analyst Vincent Colicchio the “confidence in its ability to generate solid revenue and adjusted EPS growth in fiscal 2023 and beyond.” 

The company recently reported its quarterly earnings, where it beat Street estimates, thanks to the strong demand for its services and products. “As of the close of fiscal Q3/23, the company’s sales pipeline was strong and at record levels and sales cycles declined sequentially, reflecting strong demand. Sales cycles have declined in recent quarters as clients accelerated decisions to improve efficiency ahead of a potential recession,” observed Colicchio. (See WNS Stock Chart on TipRanks) 

The analyst was encouraged by the fact that WNS did not realize any meaningful pressures from the economic headwinds that have hung heavily on peers. Challenges like volume pressures, productivity issues, delays and cancelations, etc., did not deter the business from its growth path. 

Colicchio reiterated a buy rating on the stock with a price target of $97 and even raised his fiscal 2023 and fiscal 2024 earnings-per-share forecasts to $3.86 and $4.14 from $3.78 and $4.12, respectively. 

The analyst currently stands at #282 among almost 8,300 analysts tracked by TipRanks. Moreover, 62% of his ratings have been profitable, each generating a 13.1% average return. 

BRC 

BRC (BRCC) is a unique company. The operator of the Black Rifle Coffee Company is founded and led by military veterans. The company was built to serve premium coffee, content and merchandise to active military, veterans and first responders. 

BRC has been on Tigress Financial Partners analyst Ivan Feinseth‘s buy list in recent weeks. The analyst has a $19 price target on the company. (See BRC Insider Trading Activity on TipRanks) 

Feinseth is confident that the company is a solid emerging high-growth lifestyle investment opportunity, serving a loyal and niche customer base and offering meaningful growth opportunities through product innovation and a digitally native omnichannel distribution strategy. 

BRCC recently announced that it will “shift focus from the near-term buildout of restaurants (Outpost) and DTC (Direct-to-consumer) sales to a faster growth and higher return opportunity in the expansion of the sales of its RTD (Ready-to-drink) beverages packaged and premeasured (k-cup) coffee through an increasing FDM (food drug and mass-market) focus,” explained the TipRanks-rated 5-star analyst. 

Feinseth’s convictions can be trusted, given his 185th position among nearly 8,300 analysts in the TipRanks database. This apart, his track of 63% profitable ratings, each rating delivering 12.1% average returns, is also worth considering. 

Starbucks 

The world’s largest specialty coffee chain retailer Starbucks (SBUX) is also one of Ivan Feinseth’s favorite stocks for this year. The company continues to put its numerous growth drivers into action. This includes new product development, a global coffee alliance and ongoing store growth. Starbucks also enjoys strong brand equity and a committed customer base, which will help drive its new reinvention plan for long-term growth, according to the analyst’s observations. 

“SBUX continues to improve operating efficiencies and customer experience by leveraging ongoing   innovation, new technologies, and new store formats,” said Feinseth, reiterating a buy rating on Starbucks with a price target of $136.  

Moreover, the company’s focus on expanding its product portfolio to include new health and wellness beverages, teas, and core food offerings can boost customer traffic during later hours. (See Starbucks’ Dividend Date & History on TipRanks) 

Staying up to date with the changing industry trends, Feinseth noted that Starbucks is investing in new   digital initiatives to improve customer service, supply-chain management, its loyalty program, and mobile ordering and e-commerce capabilities.  

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Top Wall Street analysts pick these stocks to climb 2023’s wall of worry

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The Spotify logo hangs on the facade of the New York Stock Exchange with U.S. and a Swiss flag as the company lists its stock with a direct listing in New York, April 3, 2018.

Lucas Jackson | Reuters

Coming off a week that was packed with corporate earnings and economic updates, it is still difficult to determine whether a recession can be avoided this year.

Investing in such a stressful environment can be tricky. To help with the process, here are five stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performances. 

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Apple

Ahead of Apple’s (AAPL) December quarter results, due out on Feb. 2, investors are fairly aware of the challenges that the company faced during the period. From production disruptions in the iPhone manufacturing facility at Zhengzhou in China to higher costs, Apple’s first quarter of fiscal 2023 has endured all. Needless to say, the company expects a quarter-over-quarter growth deceleration.

Nonetheless, Monness Crespi Hardt analyst Brian White expects the results to be in line with, or marginally above, Street expectations. The analyst believes gains in Services, iPad and Wearables, Home & Accessories revenue could be a saving grace.

Looking ahead, White sees pent-up demand for iPhones come into play in the forthcoming quarters, once Apple overcomes the production snags. (See Apple Stock Investors’ sentiments on TipRanks)

The analyst feels that the expensive valuation of approximately 27 times his calendar 2023 earnings estimate for Apple is justified.

“This P/E target is above Apple’s historical average in recent years; however, we believe the successful creation of a strong services business has provided the market with more confidence in the company’s long-term business model,” said White, reiterating a buy rating and $174 price target.

White holds the 67th position among almost 8,300 analysts followed on TipRanks. His ratings have been profitable 63% of the time and each rating has generated a 17.7% average return.

Spotify

 Audio streaming subscription service Spotify (SPOT) is also among the recent favorites of Brian White.

“Spotify is riding a favorable long-term trend, enhancing its platform, tapping into a large digital ad market, and expanding its audio offerings,” said White, reiterating a buy rating and $115 price target.

The analyst does acknowledge some challenges that await Spotify this year but remains optimistic about its margin improvement plans and several favorable industry developments. While it may be tough to attract new premium subscribers, while facing continued pressure from a lower digital ad spending environment, Spotify should benefit from ad-supported monthly active users (MAUs) this year. (See Spotify Stock Chart on TipRanks)

White is particularly upbeat about the waning mobile app store monopolies, after the European Union passed the Digital Markets Act last year. The act will be imposed from May 2023. One of the benefits for Spotify will be the ability to promote its cheaper subscription offers. Now, it can make the offers available outside Apple’s iPhone app. (This had been a challenge, as Apple previously would allow it to only promote its subscriptions through iPhone app.)

CVS Health Corp.

CVS Health (CVS), which operates a large retail pharmacy chain, has been on Tigress Financial Partners analyst Ivan Feinseth‘s list in recent weeks. The analyst reiterated a buy rating and a $130 price target on the stock.

The company’s “consumer-centric integrated model” as well as its increasing focus on primary care should help make health care more affordable and accessible for customers, according to Feinseth. CVS bought primary health-care provider Caravan Health as part of this focus. Moreover, the impending acquisition of Signify Health “adds to its home health services and provider enablement capabilities.”

The analyst also believes that the ongoing expansion of CVS’s new store format, MinuteClinics and HealthHUBs, will increase customer engagement and thus, continue to be a key growth catalyst. (See CVS Health Blogger Opinions & Sentiment on TipRanks)

Feinseth is also confident that CVS’s merger with managed healthcare company Aetna back in 2018 created a health-care mammoth. Now, it is well positioned to capitalize on the changing dynamics of the health-care market, as consumers gain more control over their health-care service expenditures.

Feinseth’s convictions can be trusted, given his 208th position among nearly 8,300 analysts in the TipRanks database. Apart from this, his track record of 62% profitable ratings, with each rating delivering 11.8% average returns, is also worth considering.

Shake Shack

Fast food hamburger chain operator Shake Shack (SHAK) has been doing well both domestically and overseas on the back of its fast-casual business concept. BTIG analyst Peter Saleh has a unique take on the company.

“Shake Shack is the preeminent concept within the better burger category and the rare restaurant chain whose awareness and brand recognition exceed its actual size and sales base,” said Saleh, who reiterated a buy rating on the stock with a $60 price target. (See Shake Shack Hedge Fund Trading Activity on TipRanks)

On the downside, the analyst points out that the expansion of services outside New York has weakened Shake Shack’s margin profile by generating low returns per unit and exposing the company to greater sales volatility. However, margins seem to have bottomed, and the analyst expects profitability to gain momentum over the next 12-18 months. A combination of higher menu prices and deflation of commodity costs are expected to push restaurant margins up to mid-teen levels.

In its preliminary fourth-quarter results, management at Shake Shack mentioned that it plans to tighten its hands with general and administrative expenses this year, considering the macroeconomic uncertainty. This “should prove reassuring for investors given the heightened G&A growth (over 30%) of the past two years.”

Saleh has a success rate of 64% and each of his ratings has returned 11.7% on average. The analyst is also placed 431st among more than 8,000 analysts on TipRanks.

TD Synnex

Despite last year’s challenges, business process service provider TD Synnex (SNX) has benefited from a steady IT spending environment amid the consistently high digital transformation across industries. The company recently posted its fiscal fourth-quarter results last week, where earnings beat consensus estimates and the dividend was hiked.

Following the results, Barrington Research analyst Vincent Colicchio dug into the results and noted that rapid growth in advanced solutions and high-growth technologies were major positives. Even though the analyst reduced his fiscal 2023 earnings forecast due to an expected rise in interest expense, he remained bullish on SNX’s efforts to achieve cost synergies by the end of the current fiscal year. (See TD Synnex Dividend Date & History on TipRanks)

Looking forward, the analyst sees a largely upward trend in growth, albeit a few hiccups. “The key growth driver in the first half of fiscal 2023 should be advanced solutions and high-growth technologies and in the second half should be PCs and peripherals and high-growth technologies. We expect Hyve Solutions revenue growth to slow in fiscal 2023 and slightly rebound in fiscal 2024 versus fiscal 2022 growth,” observed Colicchio, reiterating a buy rating and raising the price target to $130 from $98 for the next 12 months.

Importantly, Colicchio ranks 297th among almost 8,300 analysts on TipRanks, with a success rate of 61%. Each of his ratings has delivered 13% returns on average.

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Top Wall Street analysts like these stocks amid easing inflation

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The logo of Alphabet Inc’s Google outside the company’s office in Beijing, China, August 8, 2018.

Thomas Peter | Reuters

Last week, December’s consumer price index reading showed that prices are cooling.

The index dropped 0.1% on a monthly basis, but the metric gained 6.5% from the prior year. Investors seemed to appreciate the news, as the three major indexes closed higher on Friday.

Nevertheless, investing in this uncertain environment can be tricky.

To help the process, here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their track records. 

Alphabet

Google-parent Alphabet (GOOGL) is a frontrunner in every major trend in technology, including the growth of mobile engagement, online activities, digital advertising and cloud computing. Additionally, its focus on artificial intelligence is driving the development of better and more functional products.

Tigress Financial Partners analyst Ivan Feinseth recently reiterated a buy rating on the stock. His bullishness is attributed to robust trends in cloud and search, which “continues to highlight the resiliency of its core business lines.” (See Alphabet Blogger Opinions & Sentiment on TipRanks)

AI-focused investments and efforts to achieve cost and operating efficiencies should continue to drive Alphabet’s growth. Feinseth said that any weakness in the near term is a great buying opportunity.

The analyst is also upbeat about Alphabet’s financial health. “GOOGL’s strong balance sheet and cash flow enable the ongoing funding of key growth initiatives, strategic acquisitions, and the further enhancement of shareholder returns through ongoing share repurchases,” said Feinseth, who is ranked No. 229 among more than 8,000 analysts on TipRanks.

The analyst’s ratings have been profitable 60% of the time and each rating has generated average returns of 11.1%.

Hims & Hers

Another stock that Feinseth has recently reiterated as a buy is the multi-specialty telehealth company, Hims & Hers (HIMS). The analyst also raised his 12-month price target on the stock from $11 to $12.

Feinseth is confident in HIMS’s strong brand equity and customer loyalty, which he expects will continue to drive business performance. Moreover, new product innovations are supporting the company’s highly scalable business model, and they are expected to boost this year’s profits. (See Hims & Hers Health Hedge Fund Trading Activity on TipRanks)

The massive health-care market is always evolving and requires strong players with flexible business models to serve the growing demand. The analyst thinks that HIMS is well positioned in this area to be one of the top beneficiaries.

“HIMS’s scalable business model, expanding services, and rapidly growing customer base will drive significant revenue growth. Its asset-light business model of connecting patients to service providers and providing access to high-quality branded healthcare products will eventually drive a significant Return on Capital (ROC), grow Economic Profit, and increase shareholder value creation,” said Feinseth.

OrthoPediatrics Corp.

As the name suggests, OrthoPediatrics (KIDS) deals in the design, manufacture, and commercialization of products that are used in the treatment of orthopedic conditions in children. The company operates in more than 35 countries worldwide.

The pediatric orthopedic market is a niche market that is relatively underserved, which has worked to the company’s advantage. OrthoPediatrics has dominance in this market, giving it a competitive edge in the medical equipment industry. BTIG analyst Ryan Zimmerman notes that the company stands to benefit from this space as larger players have mostly overlooked the opportunity. (See OrthoPediatrics Financial Statements on TipRanks)

Last week, Zimmerman reiterated his buy rating and $62 price target on KIDS stock. In addition to the market opportunity, the analyst said that “with a leading brand among pediatric orthopedic surgeons and a concentrated customer base that performs the majority of cases at a limited number of hospitals, the model is scalable and defendable.”

Zimmerman has the 660th ranking among more than 8,000 analysts tracked on TipRanks. Moreover, 47% of his ratings have been successful, generating 9% average returns per rating.

Intuitive Surgical

Medical technology company Intuitive Surgical (ISRG) is a pioneer in robotic-assisted, minimally invasive surgery. The company is also one of Zimmerman’s favorite stocks for the year.

Recently, Intuitive Surgical announced preliminary 4Q22 results and growth guidance for procedures in FY23, which were as Zimmerman expected. Following the results, the analyst reiterated his bullish stance on the company with a buy rating and $316 price target. (See Intuitive Surgical Stock Investors on TipRanks)

“There continue to be headwinds entering FY23, but we think ISRG is poised to continue to see improving market dynamics coupled with the potential for the launch of a next-generation system. We would be buyers on today’s weakness,” said Zimmerman, justifying his bullishness.

The analyst is bullish on the company’s long-term growth potential in the area of robotic surgery, and sees ISRG as a “clear leader in the space.” Zimmerman said that the pandemic has increased the importance of computer-aided surgery, thanks to accurate clinical outcomes. This is expected to drive the adoption of Intuitive Surgical’s products over time.

The Chefs’ Warehouse

Another BTIG analyst, Peter Saleh, who has the 491st ranking in the TipRanks database, has recently reiterated his bullish stance on food distributor Chef’s Warehouse (CHEF). The company is a premier distributor of food to high-end restaurants and other expensive establishments. 

Saleh sees several upsides to share growth thanks to its “compelling business model as a niche foodservice distributor, more upscale and differentiated customer base, and unfolding sales recovery in key markets.” (See The Chefs’ Warehouse Stock Chart on TipRanks)

The analyst is upbeat about the reopening of markets in key regions and gradual recovery in serviceable areas like hospitality. These upsides are expected to drive sales this year. Saleh said that these upsides, combined with CHEF’s long-term opportunity to enhance market share, underpin his bullish stance on the company.

The analyst gave a “Top Pick” designation to CHEF stock, with a buy rating and $48 price target. “While the capital structure has changed and the technical overhang from the recent convertible issuance seems to remain, we view shares as simply too cheap given fundamentals,” said Saleh.

The analyst has delivered profitable ratings 61% of the time, and each of his ratings has generated returns of 10.9% on average.

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