Investors are constantly concerned about the implications of higher interest rates and its impact on the stock market. However, despite these worries, analysts are optimistic about stocks offering long-term growth potential. This article explores the recommendations of Wall Street’s top analysts, providing insights into three stocks favored by the experts.

Amazon, the e-commerce and cloud computing giant, has shown significant improvement in its earnings for the first nine months of 2023, amid a challenging macro environment. RBC Capital analyst Brad Erickson named Amazon as one of his top ideas in the internet space for 2024. Erickson maintains a buy rating for AMZN with a price target of $180. He anticipates a notable re-acceleration in growth for Amazon Web Services in 2024, following client spending optimization in the previous year. Additionally, Erickson expects the retail business to outperform the cloud unit, thus driving the company’s earnings before interest and taxes in 2024. The analyst is also optimistic about the robust growth potential of AMZN’s advertising business, with several partnerships and Prime video ads contributing to its success. Moreover, Erickson believes that Amazon will gain a competitive edge in the generative artificial intelligence (AI) narrative battle through its Bedrock platform for building AI applications. With a ranking of No. 175 among more than 8,600 analysts tracked by TipRanks, Erickson has a profitable track record of 55% with an average return of 19.6%.

DoorDash, the delivery platform, has demonstrated impressive results in 2023, attributed to strong execution, expense discipline, and growth investments. BMO Capital analyst Brian Pitz initiated coverage of DASH with a buy rating and a price target of $120. Pitz views DoorDash as a category leader that benefits from both categorical and consumer secular tailwinds. He estimates that the total addressable market for DoorDash in the U.S. and Europe is $2.2 trillion and $2.5 trillion, respectively, marking a significant increase from the $600 billion market at the time of the company’s IPO in 2020. Pitz highlights the acceleration of year-over-year growth in DoorDash’s U.S. marketplace orders, including restaurant and non-restaurant categories. He also emphasizes the company’s positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and its progress towards achieving GAAP profitability. Pitz ranks No. 117 among more than 8,600 analysts tracked by TipRanks, with a successful track record of 77% and an average return of 20.1%.

Nvidia (NVDA)

Nvidia, the semiconductor giant, experienced strong returns in the previous year due to the high demand for its graphics processing units in generative AI. JPMorgan analyst Harlan Sur reaffirmed a buy rating on NVDA stock following a presentation by Nvidia’s vice president of health care, Kimberly Powell. Sur has a price target of $650 for NVDA. He highlights the health-care vertical as a major revenue generator, surpassing $1 billion in revenue in FY24, ahead of the targeted time period. Sur attributes this growth to the increasing computational demand for AI in areas such as drug discovery, genomics, patient diagnostics, and robotics. He also recognizes Nvidia’s HPC and AI/DL platforms as driving substantial revenue opportunities. Sur emphasizes Nvidia’s emerging massive opportunity in computer-aided drug discovery and the growth prospects of BioNeMo, Nvidia’s generative AI platform for drug discovery. Nvidia’s partnerships with Amgen and Recursion Pharmaceuticals further strengthen its competitive position in the health-care vertical. With a ranking of No. 75 among more than 8,600 analysts tracked by TipRanks, Sur has a profitable track record of 67% with an average return of 19.9%.

Despite concerns about elevated interest rates, Wall Street analysts remain bullish on stocks with long-term growth potential. In particular, Amazon, DoorDash, and Nvidia are the top picks of analysts for 2024. Amazon’s cost-control measures and growth in the retail business, along with the potential of its advertising business and Bedrock platform, make it an attractive investment. DoorDash benefits from its position as a category leader and a significant expansion in its total addressable market. Nvidia’s prominence in generative AI and its strong presence in the health-care vertical position it for continued success. Investors can consider these stocks, backed by the expertise and recommendations of top analysts, as valuable additions to their portfolios.

Investing

Articles You May Like

The Impact of Beyoncé’s “Cowboy Carter” Album on Western Fashion
Understanding Freetrade’s Journey to Profitability
The Impact of Interest Rates on Big and Small Banks
UnitedHealth Group’s First-Quarter Earnings Call in the Aftermath of a Cyberattack

Leave a Reply

Your email address will not be published. Required fields are marked *