Saturday, April 20, 2024

7 Stocks That Wall Street Analysts Are Loving in July

Tapping into the top analyst picks discourse may feel like navigating a labyrinth. Imagining analysts as obsessive, encyclopedic nerds of the stock markets, it’s easy to presume their word is gold. However, savvy investors would know that it isn’t always the case.

Investing in analyst-recommended stocks necessitates a balanced approach, free from extreme pessimism or unwarranted optimism. That’s because the stock market is incredibly dynamic and often impossible to predict. Hence, though you shouldn’t mindlessly follow analyst-loved stocks, you cannot outright dismiss them either.

Understanding the “why” behind an analyst’s upgrade is essential. Perhaps they perceive a stock as undervalued or believe an already thriving company still has room to grow. Therefore, investors should tread with care and curiosity when it comes to these top analyst picks.

Top Analyst Picks: Advanced Micro Devices (AMD)

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Tipranks Analyst Forecast: Moderate Buy, 17.9% Upside

Advanced Micro Devices (NASDAQ:AMD) is a formidable contender in the semiconductor realm, overshadowed by its high-flying rival, Nvidia.

However, as Artificial Intelligence (AI) takes center stage across a myriad of sectors, AMD stands on the brink of massive gains. AMD is critical in fueling cloud platforms for tech behemoths such as Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), offering a diverse array of chips, powerful central processing, and data processing units.

Moreover, it recently unveiled its advanced GPU, MI300X, demonstrating its resolve to stand toe-to-toe with Nvidia. Interestingly, Amazon Web Services is exploring potential use, hinting at a possible collaboration with Amazon (NASDAQ:AMZN). Beyond AI, AMD’s chips drive some of the leading gaming consoles, further diversifying its growth potential.

Top Analyst Picks: Splunk (SPLK

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Tipranks Analyst Forecast: Moderate Buy, 13.4% Upside

Splunk (NASDAQ:SPLK) is a powerhouse in data analytics, aiding businesses grappling with massive data sets, which continue to perform incredibly well. Its first quarter results, revealed in late May, point to a rapid 11% revenue upsurge to $752 million, outpacing analyst estimates by a comfortable margin, along with a healthy 16% climb in annual recurring sales, reaching $3.7 billion.

Moreover, the quarter revealed adjusted earnings per share of 18 cents, handily topping the consensus by 31 cents. Also noteworthy was the positive free cash flow surge to $486 million, a year-over-year bump of 253%. Additionally, Splunk projects a midpoint free cash flow of $815 million for fiscal 2024.

Furthermore, the firm continues transforming existing clients from software to the cloud. The first quarter saw a 30% year-over-year surge in cloud revenue to $419 million. Additionally, the company finished the quarter boasting 810 customers with annual recurring revenues of $1 million, marking a significant 17% growth year over year.

Top Analyst Picks: Crown Castle (CCI)

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Tipranks Analyst Forecast: Moderate Buy, 26.3% Upside

Crown Castle (NYSE:CCI) is poised to surf the incoming wave of 5G adoption and is effectively placed with a robust infrastructure, encompassing more than 40,000 cell towers and a mind-boggling 85,000 miles of fiber. Though the firm’s site rental revenues might seem unhurried, we could witness a major upswing with 5G carving a deeper niche.

Crown Castle has proven to be an efficient income vehicle, sporting an impressive 5.5% dividend yield, showing its commitment to rewarding shareholders since it adopted a REIT structure in 2014. Remarkably, it has never clipped its dividend since that year and offers a unique blend of growth and income, which offers an exciting prospect for investors.

Petrobras (PBR)

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Tipranks Analyst Forecast: Strong Buy, 15% Upside

Brazil-based Petrobras (NYSE:PBR) is a state-controlled titan in the realm of oil and natural gas. Last year, as global commodity prices catapulted, Petrobras found itself basking in the limelight. Specifically, the behemoth generated a whopping $121 billion in revenue and $38 billion in net income, thanks mainly to the appreciation of Brent crude oil and robust domestic sales.

The ascension of Luiz Inacio Lula da Silva to the presidency stirred Petrobras’s stock into a whirlwind of uncertainty, with forecasts pointing towards amplified state interference. However, the feared governmental grip didn’t take hold as projected, and Petrobras’s stock surprised many, surging almost 50% since the beginning of the year.

Petrobras transformed its immense net income into a dividend bonanza for shareholders, distributing over $43 billion in 2022. Even as Brent crude oil prices stabilize, Petrobras remains a robust, profitable, enticing, undervalued player.

Adobe (ADBE)

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Tipranks Analyst Forecast: Moderate Buy, 11.4% Upside

Adobe (NASDAQ:ADBE) has solidified its position in the software-as-a-service space, propelled by a diversified portfolio and a strong foothold in the market. Spearheaded by its powerful Digital Experience segment, the firm delivered solid revenue and earnings beat in the second quarter of 2023. Moreover, its robust cash position and an active share repurchase agreement point to a spectacular showing ahead for ADBE stock.

Adobe also the bar higher, raising annual targets for earnings-per-share, net new Digital Media annual-recurring-revenues, and total revenue. Also, with its Firefly and Adobe Express applications, Adobe could offer vast growth opportunities by enabling swift, high-quality content creation. Similarly, Adobe’s Document Cloud business is thriving, meeting the rising demand for efficient document workflows. By harnessing its expertise in imaging, vector, documents, and marketing, it’s primed to play a major role in the AI sphere. Adobe’s narrative paints a vibrant picture of disciplined, profitable growth.

Baidu (BIDU)

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Tipranks Analyst Forecast: Strong Buy, 34% Upside

Despite early setbacks in its plans to become a titan in the generative AI space, Baidu (NASDAQ:BIDU) stands tall among China’s top AI players. Baidu is on the cusp of a spirited comeback, ready to fine-tune its technology to match or even outpace its rivals.

More than 120,000 companies are queuing up to experiment with Baidu’s robust generative AI Bot, ERNIE. Moreover, with the enhancement of its Wenxin Model to its investment in large language models, Baidu is cementing its position in the AI realm. Furthermore, the firm’s focus on autonomy and controllability ensures responsible and ethical AI deployment.

Furthermore, establishing an AI venture fund, integrating Ernie into startup content creation, and the green light for its fully driverless ride-hailing service in Shenzhen all point to an innovative, future-focused strategy.

LiveRamp (RAMP)

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Tipranks Analyst Forecast: Strong Buy, 25% Upside

Stepping into the spotlight is LiveRamp (NYSE:RAMP), a stalwart in the data connectivity arena. The firm empowers businesses to seamlessly access, manage, and activate data across multiple channels, tailoring experiences, measuring marketing impact, and refining outcomes.

Against the backdrop of an economic slowdown and ad spend hurdles, the firm has demonstrated its mettle effectively, boasting double-digit growth in fiscal year 2023. The imminent transition to a cookie-less advertising world sets the stage for LiveRamp, potentially fueling a faster pace of growth in the future.

Its financials remain in tremendous shape, with revenue growth on a year-over-year basis at a stellar 12.8%, in line with its historical averages. Moreover, what’s most encouraging is the expansion in its free cash flow margin to a remarkable 12%, significantly higher than its 5-year average.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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