Top Wall Street analysts like these three stocks for long-term growth
To this end, top Wall Street analysts' research can be a key consideration for investors who are picking out stocks and seeking names with long-term potential.
Here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
We start this week with online pet retailer Chewy (CHWY). The company recently delivered solid revenue and earnings for the first quarter of fiscal 2025. However, investors were concerned about some aspects, including the decline in free cash flow.
Reacting to the Q1 FY25 performance, JPMorgan analyst Doug Anmuth increased his price target for CHWY stock to $47 from $36 and reiterated a buy rating, saying that the post-earnings sell-off in the stock seems overdone. TipRanks' AI analyst has an outperform recommendation on CHWY stock, with a price target of $46.
Anmuth stated that he remains bullish on Chewy stock due to its strong execution, growth in active customers, and profitability ramp. He expects sponsored ads, product mix and fixed cost leverage to drive a multi-year profitability ramp.
"We believe CHWY is capturing share from AMZN/WMT supported by hardgoods, product mix shift, consumables, AutoShip, & efficient marketing, while improving industry trends would be a tailwind," the analyst said.
Anmuth views Chewy's full-year revenue outlook as conservative, given that the company is tracking towards the upper half of its guidance range. He highlighted that the 240,000 sequential increase in Q1 2025 Active Customer marked the fourth consecutive quarter of growth. He also pointed out improvements in other metrics like gross additions, reactivations and retention.
Anmuth ranks No. 42 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 65% of the time, delivering an average return of 21.9%. See Chewy Ownership Structure on TipRanks.
Next on this week's list is social media platform Pinterest (PINS). Recently, the company entered into a partnership with Instacart, under which advertisements on Pinterest will become directly shoppable via Instacart.
Reacting to the collaboration, Bank of America analyst Justin Post reaffirmed a buy rating on PINS with a price target of $41. TipRanks' AI analyst has assigned an outperform rating on PINS stock, with a price target of $37.
Post said that advertisers can capitalize on Instacart's first-party purchase data to target Pinterest users. The analyst highlighted that in the initial phase, select brands can reach Pinterest users based on real-world retail purchase behavior captured by Instacart. The second phase will introduce a "closed-loop measurement," enabling advertisers to see how Pinterest ads lead to product sales across Instacart's network of over 1,800 retail partners.
Overall, this partnership will provide more precise ad campaign insights and performance tracking. Post noted the rise in PINS stock in reaction to this deal and potentially favorable Q2 ad data. The top-rated analyst thinks that the partnership is a "good fit as CPG [consumer packaged goods] is one of Pinterest's largest verticals (cooking and recipes also popular), and the closed loop attribution on campaigns will likely be valued by advertisers."
If successful, Post thinks that the partnership could drive incremental ad spend by CPG clients. He remains constructive on Pinterest due to artificial intelligence (AI) enhancements that seem to be fueling user engagement and improved ad performance, with AI ramp still in the early stage.
Post ranks No.23 among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 69% of the time, delivering an average return of 22.9%. See Pinterest Insider Trading Activity on TipRanks.
We move to Uber Technologies (UBER), a ride-sharing and delivery platform. Recently, Stifel analyst Mark Kelley initiated a buy rating on UBER stock with a price target of $110. The analyst stated that he views UBER as a "super app" offering multiple reasons to use its platform, like commuting, ordering food and delivery.
Commenting on whether the emergence of autonomous vehicles (AVs) is a risk or opportunity, Kelley said that AVs present minimal risk to Uber's business over the near-to-medium term due to some hurdles, like safety, clarity on regulatory framework, cost of manufacturing AVs and large investments needed to support an AV fleet. In fact, the analyst thinks that the long-term risk from AVs is also unclear currently due to a wide range of potential outcomes.
Kelley is optimistic that Uber is well-positioned to meet or surpass the financial targets set in 2024, thanks to its solid execution. He expects gross bookings growth of 16% each in 2025 and 2026, supported by continued expansion into non-urban areas and internationally, with persistent adoption of UberOne. Moreover, Kelley expects earnings before interest, taxes, depreciation and amortization growth to be higher than gross bookings and revenue growth in 2025 and 2026.
Finally, Kelley is confident that Uber will eventually be successful in Delivery, which also facilitates customer acquisition, mainly in less dense/non-urban areas. He expects initiatives like Uber One and increased supply to boost Delivery bookings ahead. Kelly is also bullish on the greater retail media sub-segment of digital ads, as Uber has several advantages, like access to location data. Like Kelley, TipRanks' AI analyst is also bullish on UBER stock, with a price target of $108.
Kelley ranks No.119 among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 67% of the time, delivering an average return of 25.3%. See Uber Technologies Statistics and Valuation on TipRanks.
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