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3 ‘Top Stocks’ on Analysts’ Watchlist
Stock Analysis & Ideas

3 ‘Top Stocks’ on Analysts’ Watchlist

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Investments in a diversified or sector-specific portfolio are made easy with the use of tools offered by TipRanks. Its Analysts’ Top Stocks is one tool that allows an investor to play with the favorite stocks of Wall Street analysts.

The market sentiments seem to be mixed as the earnings season for the first quarter of 2022 nears its end. This season witnessed many industries reaching their pre-pandemic levels and exhibiting solid growth prospects. Also, it seems that companies have learned to deal with the existing supply chain, costs, and geopolitical troubles.

Amid such a scenario, investors have various attractive investment options at their disposal. The technology sector, as usual, is much talked about in the market, while the consumer goods are in the news for cost worries. With high oil and gas prices, utilities have reasons to rejoice, while the financial sector is dealing with reactions triggered by the Federal Reserve’s monetary tightening policies.

At this juncture, a well-thought investment plan may help investors leverage the growth prospects of a company. While dips in a share price can be used opportunistically, investments at high prices can also promise good returns.

Multiple tools offered by TipRanks can be used effectively to guide investors through this complicated task of selecting the right stock. Analysts’ Top Stocks tool helps identify the stocks that are most recommended by best-performing analysts.

Using this tool, today, we will discuss three companies (by market capitalization) that are loved by the Wall Street analysts on TipRanks.

Microsoft Corporation (NASDAQ: MSFT)

  • Nature: Software and hardware behemoth, widely known for Windows and Office
  • Market capitalization: $1.89 trillion
  • Year-to-date share price movement: 24.6% decline
  • Consensus Rating on TipRanks: Strong Buy based on 23 Buys and one Hold
  • Microsoft’s average price target: $360.27 per share (42.65% upside potential)

Three days ago, Kirk Materne of Evercore ISI reiterated a Buy rating on MSFT with a price target of $330 (30.66% upside potential). Per TipRanks, Materne is a 4-star analyst with a 56% success rate.

Also, Ivan Feinseth of Tigress Financial, a 5-star analyst, maintained a Buy rating and a price target of $411 (62.73% upside potential) on MSFT a few days ago. This Wall Street analyst enjoys a success rate of 58% on TipRanks.

In April, Microsoft’s Chairman and CEO, Satya Nadella, said, “Going forward, digital technology will be the key input that powers the world’s economic output.”

For the fourth quarter of Fiscal 2022 (ending June 2022), the company anticipates revenues to be within the $16.65-$16.9 billion range for Productivity and Business Processes segment, $21.1-$21.35 billion for Intelligent Cloud, and $14.65-$14.95 billion for More Personal Computing.

Amazon.com, Inc. (NASDAQ: AMZN)

  • Nature: Online retail shopping giant
  • Market capitalization: $1.09 trillion
  • Year-to-date share price movement: 36.9% decline
  • Consensus Rating on TipRanks: Strong Buy based on 35 Buys, one Hold, and one Sell
  • Amazon’s average price target: $3,647.08 per share (69.49% upside potential)

Recently, Ronald Josey of Citigroup, a 5-star analyst, reiterated a Buy rating on Amazon with a price target of $4,100 (90.54% upside potential). Josey has a success rate of 55% on TipRanks.

Josey said, “While we recognize the concerns a weaker consumer is likely to have on Amazon’s retail sales and the impact of greater overall costs, we also believe Amazon can gain greater share of retail sales in a more challenged macro environment.”

Another analyst, Brian Nowak of Morgan Stanley, who has a success rate of 58%, recently maintained a Buy rating on AMZN with a price target of $3,800 (76.59% upside potential).

The 4-star analyst opines that the company’s prospects are driven by healthy demand for products that offset the impact of high inventory holding and fuel costs.

In April, Amazon’s CEO Andy Jassy said, “…our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network.”

For the second quarter of 2022, the company anticipates revenues between $116 billion and $121 billion, reflecting a year-over-year increase of 3% and 7%.

Walmart Inc. (NYSE: WMT)

  • Nature: Retail and wholesale behemoth
  • Market capitalization: $328.1 billion
  • Year-to-date share price movement: 17.6% decline
  • Consensus Rating on TipRanks: Strong Buy based on 23 Buys and five Holds
  • Walmart’s average price target: $156.89 per share (31.62% upside potential)

A few days ago, Scot Ciccarelli of Truist Financial maintained a Hold rating on Walmart while lowering the price target to $139 (16.61% from upside potential) from $150.

The 5-star analyst said, “The rising food prices will continue to have an outsized impact on the spending power of lower-to-middle income customers, making it increasingly difficult for Walmart to maintain its sales and margin trajectory.”

Meanwhile, a 4-star analyst, Robert Moskow of Credit Suisse maintained a Buy rating on Walmart with a price target to $155 (30.03% upside potential).

In May, the President and CEO of Walmart, Doug McMillon, said, “U.S. inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected. We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future.”

For the second quarter of Fiscal 2023 (ending July 2022), the company predicts net sales to grow roughly 5% year-over-year.

Conclusion

From the above discussion, it is evident that Microsoft, Amazon, and Walmart have strong footholds in their respective markets. These companies are well-positioned to deal with near-term hiccups and register strong growth moving forward.

Many attractive investment options — multi sectors or single sector — can be gauged using TipRanks’ Analysts’ Top Stocks tool.

Discover new investment ideas with data you can trust.

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