Top Wall Street analysts are banking on these stocks for solid returns

 Top Wall Street analysts rely on these stocks to deliver solid returns

With markets facing pressure at least in the short term, investors should try to build a portfolio of stocks that will weather the storm and offer long-term growth potential.Here are five stocks selected by the top Wall Street analysts according to TipRanks, a platform that ranks analysts based on their past performance.

Domino's Pizza

Domino's Pizza ( DPZ ) reported mixed results for the second quarter, with the company blaming a decline in its market prices for stores and lower order volumes for its revenue shortfall compared to analysts' expectations.

However, BTIG analyst Peter Saleh reiterated a buy rating on Domino's with a $465 price target and said the stock remains his top pick. (See Domino's financial statements on TipRanks)In particular, Saleh expects the Uber Eats partnership, changes to the rewards program and the launch of pepperoni-stuffed cheese bread to boost the top line in the fourth quarter and 2024.

The analyst noted that the pizza chain's entire menu will be available to Uber Eats customers at regular menu prices, without any offers or coupons. Interestingly, the company targets higher-income customers on Uber Eats, reserving discounts and other perks for its own ordering channels.

"We expect the improvement in delivery revenue, along with falling commodities, to translate into a healthier unit economy and acceleration in domestic development next year and beyond," Saleh said.Saleh is ranked #331 out of over 8,500 analysts tracked on TipRanks. Also, 64% percent of its ratings were profitable, with an average return of 12.9%.

Platform meta

Next up are the Meta Platforms (META). The social media platform recently delivered positive second-quarter results and issued better-than-expected guidance for the third quarter, signaling an improvement in conditions in the digital advertising market.

After print, Monness analyst Brian White raised his price target on Meta to $370 from $275 and maintained a buy rating, saying the company's second-quarter results reflected strong execution and its massive cost improvement measures.

The analyst noted that management's commentary during the earnings call reflected positive vibes supported by an improving digital advertising market and a compelling product pipeline. He highlighted the momentum of Meta's short-form video Reels feature, which is growing at a rate of more than $10 billion a year in apps. He also mentioned better-than-expected traction in Threads and the company's significant investment in artificial intelligence.

White warned investors of regulatory risks and internal headwinds. However, he said that in the long term, "Meta will benefit from the digital advertising trend, innovate with AI and participate in building the meta version."

White is ranked #27 out of over 8,500 analysts on TipRanks. His ratings were profitable 67% of the time, with each rating yielding an average return of 20.7%. (See Metaplatforum stock chart on TipRanks)

Spotify

White is also bullish on audio streaming company Spotify (SPOT). While Spotify's Q2 revenue and Q3 2023 guidance missed analysts' expectations, the analyst claimed the results were "respectable" with meaningful 27% year-over-year growth in monthly active users (MAUs) to 551 million.

Commenting on Spotify's decision to increase the price of its subscription offerings, White noted that the price increase will affect most subscribers in early September, so it will have little impact on the third quarter, but will add significantly to the fourth quarter's performance.

While acknowledging the intense competitive environment, the analyst said that "Spotify is riding a favorable long-term trend, improving its platform, penetrating a large digital advertising market, expanding its audio offering and improving its cost structure."White raised his 2024 estimates and reiterated a buy rating, while raising his price target for SPOT shares to $175 from $160. (See Spotify Blogger Opinions and Sentiment on TipRanks)

Microsoft

Another tech giant on the weekly list is Microsoft ( MSFT ), which has made headlines this year for its generative AI improvements. The company's fiscal fourth-quarter results beat Wall Street estimates. That means the revenue outlook for the first quarter of fiscal 2024 fell short of expectations.

However, Goldman Sachs analyst Kash Rangan, who is ranked 459th out of more than 8,500 analysts tracked on TipRanks, remains bullish on MSFT stock. (See Microsoft's Hedge Fund Trading Activity on TipRanks)

The analyst believes that there could be concerns in the short term when the company's increased capital investment will return. But he found that historically, whenever Microsoft increased its capital spending in the cloud market, Azure's growth rate increased significantly and margins rebounded, boosting the stock price.

With a strong presence at all layers of the cloud stack, Rangan is well positioned to capitalize on opportunities in several long-term secular trends, including public cloud and SaaS adoption, digital transformation, generative AI and machine learning, analytics and DevOps.In keeping with his bullish stance, Rangan reiterated a buy rating with a $400 price target. He has a success rate of 59% and each of his evaluations returned an average of 10%.

General Motors

We now turn to legacy automaker General Motors (GM), which impressed investors with robust second-quarter sales and earnings growth. In addition, the company raised its full-year outlook for the second time this year.

Recently, Tigress Financial Partners analyst Ivan Feinseth reaffirmed a buy rating on the stock with a price target of $86, noting the company's strong execution and the ramp-up and production of new electric vehicles.

The analyst emphasized that the company continues to see strong demand for its full-size SUVs and pickup trucks, which is boosting its revenue and cash flow and funding the transition and expansion of its EV production.

Feinseth cited the Ultium platform and GM's EV battery supply chain as its significant competitive advantage. The analyst also positively evaluates the company's recent initiatives to expand its network of charging stations.

“In addition to the increase in EV production, GM's increase in high-value software and services as it plans to double the company's revenue to $275-315 billion by 2030 should lead to significant increases in return on capital (ROC) and economic growth. Profit,” the analyst said.

In the fast-paced and ever-changing world of stock markets, it's essential to stay up-to-date with the latest insights from Wall Street's leading analysts. These financial experts have a keen eye for identifying lucrative opportunities that have the potential to yield solid returns. For investors looking for advice on where to put their money, this stock has caught the attention of Wall Street's top stocks and is expected to deliver an impressive performance in the coming months. Let's dive into the stocks that analysts are counting on for solid returns.

The technology sector has been the driving force behind the market's growth, and leading Wall Street analysts believe this trend will continue. Leading technology companies with proven track records and innovative products are expected to outperform in the current economic climate. Names like Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL ) and Amazon.com Inc. (NASDAQ: AMZN ) has gained favor among analysts, who view it as a growth driver poised to deliver impressive returns to investors.

As the world moves toward sustainability and clean energy, green energy stocks have become a focal point for leading Wall Street analysts. Companies like Tesla Inc. (NASDAQ: TSLA ), NextEra Energy Inc. (NYSE: NEE ) and Plug Power Inc. (NASDAQ: PLUG ) are constantly on the radar of analysts. These environmentally conscious companies have the potential to benefit from growing demand for renewable energy sources, making them an attractive choice for investors looking for long-term gains.

The healthcare industry is constantly evolving, and Wall Street analysts keep a close eye on companies at the forefront of medical innovation. Biotech giants like Moderna Inc. (NASDAQ: MRNA ) and CRISPR Therapeutics AG (NASDAQ: CRSP ) have attracted significant attention. Their cutting-edge technologies and potential breakthrough processing make them promising contenders for significant returns.

The pandemic has accelerated the shift to online shopping and pushed e-commerce companies to new heights. Wall Street analysts remain bullish on companies like Shopify Inc. (NYSE: SHOP), Etsy Inc. (NASDAQ: ETSY ) and Alibaba Group Holding Ltd (NYSE: BABA ). As these companies continue to innovate and expand their market presence, analysts expect continued growth and solid returns for investors.

Banks and financial institutions play a vital role in the economy, and leading Wall Street analysts have identified several key players expected to deliver robust returns. JPMorgan Chase & Co. (NYSE: JPM), Visa Inc. (NYSE: V ) and Mastercard Incorporated (NYSE: MA ) are among the best. The strong financial position of these companies and their adaptability to changing market conditions make them an attractive choice for investors looking for stability and potential growth.

When it comes to making informed investment decisions, the insights of leading Wall Street analysts carry significant weight. As we navigate dynamic market conditions, focusing on these analyst-favorite stocks can help investors maximize their chances of solid returns. Before making any investment decision, be sure to do your due diligence and consider your risk tolerance. Happy investing!