The word on
For instance,
"Throughout this cycle, each intermediate-term correction feels like the fundamental and tactical backdrop is at risk, only to ultimately realize that positive influences that drive our core thesis still exist," he wrote in a recent report.
We turned to TipRanks' revamped Stock Screener to see which stocks top analysts are betting on right now. These stock picks tend to feature big growth potential over the coming months. We specifically filtered for stocks with a "Strong Buy" consensus rating from the best-performing analysts. By looking at analyst ratings since 2009, we can pinpoint the outperforming analysts with the highest success rate and average return.
The following 10 stocks stood out as particularly compelling top analyst stock picks. Let's take a look.
Microsoft
Market value: $774.0 billion
TipRanks consensus price target: $113.86 (14% upside potential)
TipRanks consensus rating: Strong Buy
Software giant Microsoft (MSFT, $100.13) already has significant backing from
"We see Microsoft building out the 'Netflix of Gaming,'" Weiss told clients on
In terms of numbers, Weiss sees Microsoft's gaming business revenue soaring to $10 billion in fiscal 2018 - a $1 billion improvement from the previous year. He believes software and subscription services will generate 70% of this figure.
"With the gaming ecosystem expanding from the console to the PC and Mobile device, a shift from hardware and one-time video game sales to subscription services, and a future which includes streaming, broadcasting, and mixed-reality, we see Microsoft well positioned for the future of Gaming" Weiss wrote. For example, Microsoft's Azure cloud service "allows for developers to scale and customize gaming infrastructure on a reliable cloud."
On a longer-term basis, gaming could just be the driver that tips Microsoft over the $1 trillion market cap milestone. For Weiss, his estimate of a 45% gaming unit gross margin by 2021 is an essential part of the "path to $50 billion in earnings-before-interest-and-tax and a $1 trillion market cap for Microsoft."
Carnival
Market value: $46.1 billion
TipRanks consensus price target: $80 (23% upside potential)
TipRanks consensus rating: Strong Buy
If you are looking to diversify your portfolio, the Street's top analysts are recommending the world's largest leisure company. Carnival (CCL, $65.18) boasts a combined fleet of more than 100 vessels with a whopping 11.5 million-plus annual guests.
The stock has pulled back from recent highs - it traded at roughly $72 in January - over concerns of too much industry capacity. However, top analysts have moved quickly to reassure investors.
Carnival itself recently reported another quarter of strong results driven by increasing demand and strong pricing trends. For Feinseth, "CCL continues to benefit from positive global economic growth of consumer spending trends that are favoring the travel industry. CCL is driving revenue and yield growth through its successful revenue management, marketing efforts, and new technology initiatives."
He writes that Carnival also is boosting shareholder returns through its ongoing dividend increases and share repurchases.
The bottom line: "We believe further upside in the shares exists from current levels and continue to recommend purchase." Feinseth reiterated his buy rating on
Okta Inc.
Market value: $5.8 billion
TipRanks consensus price target: $61.67 (13% upside potential)
TipRanks consensus rating: Strong Buy
Multi-user password keeper
"We are in a fast-moving market for software and Okta is a fast-moving company in this investor-favored space" writes five-star
The big question for investors right now is whether Okta has the potential to transition to a much larger firm. In this respect, Davis recommends "focusing on the fact that Okta is doing a good job creating broader "concentric circles" of adjacent functionality that extends the firm's TAM (total addressable market) without abandoning the core cloud SSO market." And if we look at the bigger picture, "OKTA is emerging as the category leader in Identity, which means this business should scale to several billion dollars in revenue."
This came on the back of another strong quarter for OKTA with revenue up 60% year-over-year. Okta increased the high-end of its full year revenue guidance by $9 million, which implies just under 40% growth for the year. Okta also revealed impressive customer growth to a total of 4,700 customers with 350 new net additions.
Costco
Market value: $90.9 billion
TipRanks consensus price target: $216.57 (4% upside potential)
TipRanks consensus rating: Strong Buy
Member-only chain store
Following the results, top Baird analyst
Oppenheimer's
All this drives Nagel's conclusion that "COST represents one of the most powerful business models in global retailing." "We continue to see an opportunity in the shares for intermediate- to longer term-oriented investors," he writes.
Indeed, longer-term, a lower domestic corporate tax rate should also allow COST to further step up strategic investments "intended to further strengthen its competitive standing amid a shifting retail landscape."
Amgen
Market value: $121.2 billion
TipRanks consensus price target: $200.17 (8% upside potential)
TipRanks consensus rating: Strong Buy
For all those migraine sufferers out there, Amgen (AMGN, $185.01) could have the answer. The company has developed the first preventative migraine drug for adults called Aimovig (Erenumab). The drug has now been approved by the FDA with an annual price per patient of $6,900. Although this may sound expensive, this price point has been described as "fair" by the Street.
Following the approval in May, top-rated Oppenheimer analyst
"We anticipate Aimovig will launch in 2018 and result in 2022 sales of $555.1 million, or 1.7% of product sales," she writes. "This sales level is based on conservative market adoption; therefore, there may be upside to this estimate."
The drug, a monoclonal antibody that works for both chronic and episodic migraines, can be self-administered once monthly via Amgen's autoinjector. European approval is expected in the coming months.
Citizens Financial
Market value: $20.2 billion
TipRanks consensus price target: $51.00 (22% upside potential)
TipRanks consensus rating: Strong Buy
Citizens Financial (CFG, $41.70) is the 12th largest retail bank in the
He upgraded the stock on
Top 20 Vining Sparks analyst
He concludes that CFG "should be able to generate total shareholder return of over 20% ... topped off with a 2.1% dividend yield."
Six analysts have recently published buy ratings on CFG, with just one analyst issuing a neutral hold rating. Top
Broadcom
Market value: $114.9 billion
TipRanks consensus price target: $313.09 (16% upside potential)
TipRanks consensus rating: Strong Buy
"Outside of wireless, things seem to be going swimmingly" is how one top analyst (Bernstein's Stacy Ragson) summed up the results.
"With a bottom in wireless in place and momentum building in data center and parts of storage, the stock won't stay this cheap," commented Morgan Stanley's
This five-star analyst explains, "
He notes that trends in enterprise, cloud, and networking remain strong, with the start of a seasonal recovery at
Microchip Technology
Market value: $23.8 billion
TipRanks consensus price target: $116.70 (14% upside potential)
TipRanks consensus rating: Strong Buy
However, top Needham analyst Rajvindra Gill (view Gill's TipRanks profile) is particularly excited about the company's potential in the automotive market. Following a meeting with the Microchip COO
"MCHP generates ~25% of sales from the automotive sector," writes Gill, adding that the company is now "targeting automotive semiconductor growth via embedded systems which are smarter, networked, and secure."
Indeed, MCHP is a top-10 automotive supplier with over 50 components sold into the vehicle. Microchip plays a valuable role in the production of advanced driver assistance systems (ADAS) which is the backbone of self-driving technology. In this respect, Microchip has even been gaining ground against its key rival NXPI.
"We would argue that MCHP is one of the leading ADAS suppliers through its broad product portfolio," Gill writes.
Insmed
Market value: $2.0 billion
TipRanks consensus price target: $43.33 (62% upside potential)
TipRanks consensus rating: Strong Buy
Momentum for
"We believe the
He continues: "We continue to believe the collective strength of the ALIS data essentially removes the regulatory risks." Fein says there are high unmet needs in the existing NTM space because no effective treatment is available, so "with the observed efficacy at hand, ALIS is well positioned to fill the void."
Fein has a price target on INSM of $35 per share. However, he adds that if he assumed a 100% probability of success for ALIS, "we could easily justify a valuation north of $50/share."
General Motors
Market value: $61.9 billion
TipRanks consensus price target: $52.33 (19% upside potential)
TipRanks consensus rating: Strong Buy
"
At the time, $1 billion seemed like a high price tag for the Cruise startup, but
"It will drive change across a range of industries, displacing vehicle ownership with Mobility-as-a-Service, and defining a new landscape of concierge and ride-hailing services, as well as pilotless vehicle options for businesses in industries like package delivery and long-haul transportation," the 2017 Intel report says.
Harriet Lefton is head of content at TipRanks, a comprehensive investing tool that tracks more than