As investors grapple with macro uncertainty and the specter of a path for rate cuts from the Federal Reserve, they need to adopt a long-term mindset to choose the best stocks for their portfolios.
To make the right decision, investors can follow the advice of Wall Street experts who carefully evaluate a company’s financial performance and its growth strategy before assigning a rating.
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.
Domino’s Pizza
This week’s top picks are chain restaurants Domino’s Pizza (DPZ). The company recently reported first-quarter earnings per share that beat expectations due to higher U.S. royalties and fees and higher supply chain gross margins.
Deutsche Bank analysts following Q1 report Lauren Silberman Reaffirmed a Buy rating on DPZ stock and raised its price target to $580 from $555, citing improved visibility of same-store sales growth prospects.
Silberman noted that U.S. same-store sales grew 5.6%, reflecting broad momentum, with improved foot traffic in delivery and delivery. She added that traffic growth was driven by Domino’s improved loyalty program, strong value proposition, operations and innovation.
The analyst also noted that DPZ is benefiting from increased contributions from Uber Eats due to growing marketing efforts and awareness. Overall, the first-quarter results reinforced Silberman’s positive view on DPZ, driven by the company’s initiatives to support same-store sales growth, accelerating unit growth through improved franchisee profitability and higher margins.
“We think the premium valuation is justified and given improving fundamentals, we think DPZ offers favorable risk/reward,” she said.
Silberman is ranked No. 446 among more than 8,800 analysts tracked by TipRanks. Her ratings were profitable 69% of the time, with an average return of 13.9% each time. (look Dominoes Technical Analysis on prompt ranking)
shake cabin
We move to a burger chain shake cabin (Shaq), which reported mixed first-quarter results earlier this month. Still, investors were pleased with the company’s comments about improving business trends.
BTIG held an investor meeting with company management following the release of first-quarter results.Analyst Peter Saleh Reiterating a Buy rating on SHAK stock and raising the price target to $125 from $120 based on key takeaways from the management meeting.
“We believe the combination of technology (kiosks), enhanced operating model (less labor) and stronger marketing will create a very powerful and profitable combination,” Saleh said.
Analysts believe that the company’s strategic moves will boost same-store sales growth and drive substantial growth in restaurant profit margins in the short and long term.
Saleh emphasized that management has seen a more than ten-fold increase in check orders from kiosks compared to traditional in-store orders because consumers like the customization options provided by kiosks. Analysts believe that in addition to saving labor and improving efficiency, self-service terminals will bring more sales revenue in the future.
Saleh is ranked No. 353 among more than 8,800 analysts tracked by TipRanks. His rating success rate is 61%, with an average return per rating of 12.1%. (look Shake Shack’s shareholding structure on prompt ranking)
apple
Finally, we come to the tech giants apple (AAPL), the company recently reported better-than-expected second-quarter earnings despite declining revenue. The company said the revenue decline was due to a harsh comparison with the same period last year.
Investors reacted positively to the results and the company’s announcement of an expanded buyback program. Apple’s board of directors authorized additional stock buybacks worth $100 billion.
Baird analyst calls Apple second-quarter earnings ‘solid’ William Ball Reiterate Buy rating on the stock with price target of $200. The analyst noted that the company’s revenue, earnings per share and gross margin exceeded his expectations.
Power added that Apple’s services revenue increased 14.2% year-over-year, accelerating from the 11.3% growth in the first fiscal quarter. He also observed that Apple’s performance in China was better than people feared. Greater China revenue fell 8.1%, an improvement from the 12.9% decline in the previous quarter.
The analyst believes the company’s artificial intelligence updates at its June developer conference could be a catalyst for the stock. Ball explained that his price target on AAPL stock indicates a premium valuation compared to peers and “reflects strong execution, growing service contributions, continued ecosystem benefits and strong free cash flow.”
Power ranks No. 245 among more than 8,800 analysts tracked by TipRanks. His ratings were profitable 56% of the time, with an average return of 16.1% per rating. (look Apple stock buyback on prompt ranking)
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