Top Wall Street analysts like Costco & Amazon for the long term

Investors are trying to make sense of the big company’s earnings, looking for clues as to what they will do as headwinds persist. It is wise for investors to pick stocks with an optimistic long-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 past performance.

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Wholesale Costco (COST) is known for its resilient business model that has helped it weather several economic downturns. Additionally, members-only warehouse clubs have a loyal customer base and generally enjoy renewal rates 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 January 29. Chinese New Year to the beginning of the year.

After the sales report, Baird analyst Peter Benedict reaffirmed a buy rating on Costco and a price target of $575. Benedict stated, “With a defensive/staples-heavy sales mix and a loyal member base, we believe the stock continues to have fundamental appeal as a “growth staple ” megacaps are rare – especially when faced with a difficult consumer spending backdrop.

Benedict’s belief can be trusted, because he is 55 years old^Th position out of more than 8,300 analysts in the TipRanks database. Additionally, they have a solid track record with a 71% profit rating, with each rating yielding an average of 16.3%. (See Costco Hedge Fund Trading Activity on TipRanks).

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

Amazon’s first quarter sales growth outlook of 4% to 8% represents a faster deceleration compared to the 9% growth in the fourth quarter. Amazon is cutting costs as it faces record growth, higher costs and continued economic turmoil.

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

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

Consequently, Rakesh said AMZN stock could be “short-term volatile due to the risk of a potential downside revision.” However, he maintained a buy rating on AMZN with a price target of $135 due to “positive long-term fundamentals.”

Rakesh is ranked #84 among over 8,300 analysts tracked by TipRanks. Additionally, 61% of their ratings have been profitable, with each yielding an average of 19.3%.

Fitness equipment manufacturer Platoon (PTON), once it became a pandemic, it fell out of favor after the reopening of the economy as people returned to the gym and competition increased. Peloton’s stock fell last year due to deteriorating sales and mounting losses.

However, investor sentiment 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 despite a 30% year-over-year decline in overall sales. While the loss per share narrowed from the previous quarter, it was worse than what Wall Street projected.

Like investors, JPMorgan analyst Doug Anmuth is also “increasingly positive” on Peloton after its latest results, citing cost control measures, an increase in free cash flow losses and better-than-anticipated fitness subscriptions. Anmuth emphasized that the company’s reorganization to a more variable cost structure is complete and appears focused on achieving its goal of breaking even by the end of fiscal year 2023.

Anmuth reiterated his buy rating and raised his price target to $19 from $13, as the company focuses on restoring revenue growth. (See PTON Stock Chart on TipRanks)

Anmuth is ranked 192 out of more than 8,300 analysts on TipRanks, with a success rate of 58%. Each of his ratings yielded an average of 15.1%.

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

On the left, the company’s December quarter revenue growth and subdued guidance reflected near-term headwinds, due to continued weakness in the PC market and slowdown in the cloud business Azure as the company tightens spending. That said, Azure’s long-term growth potential looks attractive.

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

Feinseth reiterated his buy rating on Microsoft and maintained his $411 price target, saying, “The strength of the Azure Cloud platform combined with increasing AI integration across product lines continues to drive global digital transformation and highlight long-term investment opportunities.”

Interestingly, 64% of Feinseth’s ratings have yielded a profit, with each rating yielding an average of 13.4%. (See MSFT’s Insider Trading Activity on TipRanks)

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

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

The company is also benefiting from increased demand in the automobile industry for advanced camera and sensor systems used in ADAS and safe driving systems. Furthermore, Feinseth sees opportunities for companies in the autonomous mobility as a service, or AMaaS space.

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

Given Mobileye’s growing strength, Feinseth raised its price target to $52 from $44 and reissued a buy rating. (See Mobileye Bloggers Opinions & Sentiments on TipRanks)