Analysts pick 3 stocks to invest in

Author

Desmond Lim
July 08, 2024

Investors are facing a challenging landscape as mixed economic signals create uncertainty, even as the S&P 500 reaches new highs. In such a complex environment, turning to top-rated Wall Street analysts can provide valuable insights. Here are three stocks favored by the Street’s top professionals, according to TipRanks.

1. Micron Technology (MU)

Chipmaker Micron Technology recently reported impressive fiscal third-quarter results, benefiting from the ongoing artificial intelligence (AI) wave. Goldman Sachs analyst Toshiya Hari reiterated a buy rating on MU stock, raising the price target to $158 from $138. Hari highlights Micron's market share gains in high-bandwidth memory and AI-driven growth in data centers and edge computing. The company generated $425 million in free cash flow in Q3 and is expected to drive positive cash flow into FY2025 despite increased capital expenditures.

2. Amazon (AMZN)

E-commerce and cloud computing giant Amazon remains a market leader in U.S. online retail, according to Evercore ISI analyst Mark Mahaney. Following a recent survey, Mahaney reaffirmed a buy rating with a $225 price target. The survey indicates Amazon's dominance in price, selection, and convenience, though Walmart is improving in these areas. Amazon Prime membership reached a record 81%, with features like Prime Video and Free Same Day Delivery enhancing its attractiveness. Mahaney foresees growth in Amazon Web Services, rising retail margins, and strong free cash flow as key catalysts for 2024.

3. Twilio (TWLO)

Twilio, a cloud communications platform, reported better-than-expected Q1 2024 results, with active customer accounts rising to over 313,000. Despite a decline in shares due to weak Q2 guidance, Tigress Financial analyst Ivan Feinseth initiated coverage with a buy rating and a $75 price target. Feinseth sees Twilio benefiting from AI-driven digital customer engagement and expects the company's investments in AI to boost customer adoption and profitability. He also highlights Twilio's "call center as a service" platform and its leading position in the communications market.

These stocks, favored by top analysts, offer promising opportunities for investors seeking solid growth prospects and strong balance sheets in a turbulent market.