The post-election rally has encountered some turmoil in recent days, creating a short-term bumpy road for investors. However, these volatile markets can hold plenty of opportunities for those who know where to look.
Investors should not pay too much attention to short-term fluctuations when allocating their portfolios. Advice from Wall Street can help them make informed stock decisions and seek stable long-term returns.
Top analysts look at multiple aspects when selecting stocks of companies with solid fundamentals and strong execution.
With that in mind, here are three stocks to like Wall Street’s Top ProfessionalsAccording to TipRanks, the platform ranks analysts based on their past performance.
Amazon
We kick off the week with e-commerce and cloud computing giant Amazon (Amazon). The company impressed investors with third-quarter revenue and profit, driven by strength in its cloud and advertising businesses.
Monness analysts react to third-quarter results Brian White Reiterates a buy rating on Amazon stock and raises price target to $245 from $225. While the analyst acknowledges regulatory pressure, he remains bullish on Amazon as he believes the company will continue to “leverage the cloud, expand its digital advertising business, innovate with artificial intelligence, improve the efficiency of its regional fulfillment network, and leverage leaner cost structure.
White emphasized that Amazon’s revenue growth has accelerated to 17%, and there is significant room for profit growth. Notably, third-quarter operating profit exceeded his expectations, with operating margin hitting a record high of 11%. He also pointed out that operating profit margins of Amazon Web Services (AWS) and international businesses have continued to rise significantly. Based on the solid performance, analysts raised their revenue and earnings per share forecasts for 2024 and 2025.
White also noted that Amazon is focused on reducing costs through efficiency improvements and new initiatives such as regionalizing its U.S. delivery network. The company now aims to regionalize its U.S. inbound network and leverage advanced robotics innovations across its fulfillment network.
Overall, White sees Amazon’s lucrative growth potential in e-commerce, AWS, digital media, advertising, Alexa, robotics, artificial intelligence and other areas.
White ranks No. 38 among more than 9,100 analysts tracked by TipRanks. His ratings were profitable 69% of the time, with an average return of 20.4%. look Amazon stock chart On prompt ranking.
Uber Technologies
We now turn to our second choice of the week, ride-sharing platforms Uber Technologies (Uber). The company recently reported better-than-expected third-quarter revenue and earnings. However, it fell short of Wall Street expectations for third-quarter gross bookings.
Nonetheless, Evercore analysts Mark Mahaney Still bullish on UBER stock. After a series of investor meetings with management, he reiterated a buy rating with a $120 price target.
Mahaney believes Uber will benefit from the rollout of self-driving cars, given its position as the largest aggregator of ride-sharing demand. He added that the availability of robotaxis on Uber’s platform would improve customer service through shorter wait times, a wider range of ride options and potentially lower prices.
“Uber believes it can provide compelling economics to self-driving vehicle owners, allowing them to achieve higher profits and better fleet utilization than they could develop on their own,” Mahaney said.
Based on discussions with management, Mahaney explained that the deceleration reflected in Uber’s mobility booking growth in the third quarter and forecast for the fourth quarter was due to negative demand elasticity caused by surging insurance costs and a slowdown in “party time” bookings. Or those that take place in the evenings and weekends. He believes the deceleration will slow given slower growth in insurance costs, the growth prospects of new products like Uber for Teens and Uber for Business, and potential improvements in consumer demand for discretionary items.
Ultimately, Mahaney remains confident that Uber has the ability to consistently improve EBITDA and free cash flow margins over the next three to five years, supported by multiple cost-efficiency measures.
Mahaney ranks No. 34 among more than 9,100 analysts tracked by TipRanks. His rating success rate is 64%, with an average return of 28.9%. look Uber Technologies Stock Options On prompt ranking.
clogged
Finally, let’s look at the fintech giants clogged (square number). The company, formerly known as Square, reported third-quarter profits slightly above analysts’ expectations, but revenue fell short of expectations.
Based on the results, BTIG analysts Andrew Hart The strengths and weaknesses of Block’s third-quarter results are discussed. He noted that the company’s initial FY25 gross profit growth guidance was at least 15%, almost meeting the consensus estimate of 14.9%. However, the 14% gross profit outlook for the fourth quarter missed expectations as the timing of some expected earnings shifted from the fourth quarter to next year.
Analysts think CEO Jack Dorsey has done a good job highlighting the company’s lending products and explaining how they will drive the growth of the Block ecosystem. Despite weak fourth-quarter guidance and management comments suggesting investors would have to wait until the second half of 2025 for growth acceleration, SQ stock remains a top pick among BTIG.
Harte cited several reasons for his bullish stance, including Block’s track record of beating guidance and the stock’s attractive valuation (12x fiscal 2025 EV (enterprise value)/EBITDA). He added that the company is in the early stages of driving increased product adoption within its Cash and Square ecosystems, indicating continued growth potential ahead.
Harte said: “Block is just beginning to integrate its Cash App and Square ecosystem, and over time, this may have a meaningful flywheel effect.” He also reiterated his buy rating on the stock with a target price of $90.
Harte ranks No. 152 among more than 9,100 analysts tracked by TipRanks. His ratings were profitable 75% of the time, with an average return of 63.8%. look Bulk Hedge Fund Activity On prompt ranking.
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