Stocks have struggled recently as investors grapple with macro pressures, the upcoming election and geopolitical tensions.
However, if investors and their portfolios can ignore the short-term noise and select stocks with attractive long-term return prospects, they can persevere through the turmoil.
In this regard, the ratings of Wall Street's top analysts and their investment thesis can provide useful insights to help us make the right decisions.
With that in mind, here are three stocks that investors are loving Top street prosAccording to TipRanks, the platform ranks analysts based on their past performance.
costco wholesale
Membership warehouse chain costco wholesale (cost) is this week's first choice. The company recently reported June sales and announced an increase in membership fees. Costco will increase the annual fee for its Gold Star membership by $5 starting September 1, to $65.
Jefferies analysts react to Costco increasing memberships for first time since June 2017 Corey Tallow reiterated a Buy rating on COST stock and raised its price target to $1,050 from $860, saying the stock remains a top pick. Analysts see rising membership as a positive catalyst for the stock and company's earnings.
Tarlowe pointed out that in the past, Costco has raised membership fees on average every 5.5 years. This time, however, the retailer has increased the fees after a gap of seven years. He believes the timing of the fee increase is good given the continued health of the company's membership and strong June numbers.
“Historically, COST has not had a significant impact on membership trends when fees have increased, so we believe the impact will be muted,” Tarlowe said.
Analysts expect higher membership fees to boost sales and EBIT, as membership fees account for a large portion of Costco's growing operating profits. He estimates the company's earnings per share potential will be nearly 3% over the next two years.
Tarlowe ranks No. 321 among more than 8,900 analysts tracked by TipRanks. His ratings were profitable 67% of the time, with an average return of 18.8%. (look costco dividend on prompt ranking)
MongoDB
Next is the database software company MongoDB (MDB). The stock plunged in May after the company announced weak second-quarter guidance and lowered its full-year forecast. MongoDB blamed growth in new workloads and consumption growth for its cloud-based database software Atlas on a slower-than-expected start to the year.
tigress financial analyst Ivan Fainsese Recently lowered his price target on MDB stock to $400 from $500 to reflect near-term pressure, but reiterated a Buy rating as he believes the stock's sell-off is a good buying opportunity.
Despite a poor start to the year, Feinseth is bullish on MongoDB as the company continues to gain traction with developers. He also mentioned the growth momentum of MDB's Atlas DBaaS (database as a service) product.
He expects the company to benefit from the integration of artificial intelligence (AI) into its products. “MDB incorporates new artificial intelligence capabilities that improve developer productivity, accelerate application development and accelerate its rapid enterprise adoption trend,” said Feinseth.
The analyst also highlighted the company's expansion into other major verticals such as healthcare, insurance, manufacturing and automotive production. He is optimistic about the future of MDB's solid DBaaS platform because of its superior functionality and cost advantages compared to traditional database solutions.
Feinseth is ranked No. 191 among more than 8,900 analysts tracked by TipRanks. His rating success rate is 62%, with an average return of 13.6%. (look MongoDB stock buyback on prompt ranking)
Nvidia
semiconductor giant Nvidia (NVDA) is this week’s third pick. The wave of generative artificial intelligence has significantly increased demand for companies’ advanced graphics processing units. Even with the stock's impressive year-to-date rebound, Goldman Sachs analysts say Harimiya Think it has more room to run.
After meeting with Nvidia Chief Financial Officer Colette Kress, Hari reiterated a buy rating on the stock with a price target of $135. The analyst said the meeting reinforced his “belief in the sustainability of the ongoing AI spending cycle.” The meeting also convinced analysts that NVDA has the potential to maintain its dominant position through strong innovations in computing, networking and software.
Commenting on Nvidia's next-generation AI graphics processor Blackwell, analysts reported that the company's chief financial officer said the company's major suppliers are in a better position for Blackwell's upgrade compared to the previous generation. Hari expects the Blackwell platform to generate significant revenue contribution in the fourth quarter of fiscal 2025 and the first quarter of fiscal 2026, but he believes the contribution in the third quarter of fiscal 2025 will be limited.
The analyst believes that despite increasing competition, Nvidia will continue to maintain its leadership position based on several factors, such as a large installed base and a better supply pipeline. Additionally, the speed with which large enterprises and cloud service providers are building and deploying generative AI models gives Nvidia an advantage over competitors that are still developing advanced AI GPUs.
Hari ranks No. 30 among more than 8,900 analysts tracked by TipRanks. His ratings were profitable 69% of the time, with an average return of 30.2%. (look Nvidia Option Campaign on prompt ranking)