Analysts highlighted a large number of stocks this week with plenty of room to move into the second half of the year. Analysts say these companies have significant upside and should be bought now. CNBC Pro combs through top Wall Street research to find the top stocks ahead of summer. They include: Amazon, Compass, PowerSchool, elf Beauty, and Palantir. Compass Oppenheimer analyst Jason Helfstein is doubling down on the real estate company. Compass has broad positive catalysts for the future, is rapidly gaining share and is a beneficiary of AI, Helfstein said earlier this week. “The company is in the early stages of building out its high-margin adjacent service offering, which presents an untapped $183B TAM opportunity,” he said. Helfstein sees AI being used to develop an “agent tool” that he believes can improve efficiency. Compass, which also has a mortgage business, is being tested in key markets, and new products such as the agency dashboard should launch in 2024, he wrote. Additionally, Helfstein said volume growth remained strong despite inventory challenges. If rates drop in any meaningful way, the company says Compass is very well positioned. “As such, we think COMP represents one of the best margin upside stories we’ve covered,” he said. Elf Beauty Elf, whose shares are up more than 43% year-to-date, is a “timeless beauty,” according to Morgan Stanley. Earlier this week, the firm took a closer look at whether the stock still has significant upside. That proved to be the case, analyst Dara Mohsenian wrote. “Our conclusion is that for a number of reasons, there is solid upside, both on the upside vs. consensus and subsequently on the upside in equities,” he said. Mohsenian noted that sales remain strong, but forward-looking consensus estimates remain too low. “Importantly, underlying ELF organic sales momentum is accelerating,” Mohsenian said. Consensus margin estimates are also too low, he added. Additionally, Mohsenian took the opportunity to raise his price target on the stock to $118 per share from $110. “Reiterating OW-elf still has considerable revenue (and stock) upside,” he said. Shares are up more than 88% in 2023. Bank of America analyst Mariana Perez Mora said in a recent note that the Palantir AI train is “moving forward,” which is a big deal for Palantir investors. The banking giant believes Palantir is well positioned to become one of the “dominant” providers of artificial intelligence. While many companies and industries are scrambling to create a legal infrastructure for the use of artificial intelligence, Palantir is already ahead of the curve in this regard, it said. “Based on experience working with governments and highly regulated industries, PLTR has developed and implemented architectural designs that support generative AI in both the compliant and private worlds,” said Perez Mora. Palantir also recently launched AIP, which stands for Artificial Intelligence Platform. “We believe the AIP solution could help PLTR further penetrate existing customers and open up partnership opportunities to develop easily scalable AI solutions,” the analysts wrote. Perez Mora recently raised her price target to $18 a share from $11, and the stock is up 153% this year. “In the generative AI arms race, Palantir has the upper hand,” says Perez Mora. Compass- Oppenheimer, Outperform Rating “As such, we believe COMP represents one of the highest-margin stories we cover. … would benefit from generative AI. … An example could be Agency tools to improve efficiency…As such, we believe COMP represents one of the highest-margin stories we cover…The company is in the early stages of building out its high-margin adjoining service offerings, This presents an untapped $183B TAM opportunity” Amazon – Bank of America, Buy rating “There is still plenty of room for growth (and upside) going forward. …We are encouraged by the CEO’s comment that retail margins Likely to improve above pre-pandemic levels.North American retail margin growth of 2-3 percentage points y/y in 2024 could drive $4-8 billion in operating profit Compared to Street, the estimated trend seems to be driving the stock …with only 3% growth in 2024E Op Income since bottoming out in February and while expectations have moved higher (stocks +47% YTD), we think higher margins can still drive outperformance.” elf Beauty – Morgan Stanley Profit, Overweight rating “Eternal Beauty; reiterate OW-ELF still has considerable top-line (and stock) upside. …Our conclusion is that fundamentally Both have solid upside for several reasons…importantly, underlying ELF organic sales momentum is accelerating, compared to the most recently reported pre-COVID 2019 4-year revenue CAGR in FQ4 , 30%, well above the already very strong 22% in FQ3/FQ2 and the past twelve months.” Palantir-Bank of America, Buy rating “trAIn is moving forward. …according to discussions with the government and Experience in collaboration in highly regulated industries, PLTR has developed and implemented architectural designs that support generative AI in both the compliant and private worlds. … We believe that the AIP solution can help PLTR further penetrate existing clients and open up partnership opportunities to develop easy-to-use Scaling AI solutions….Palantir is at the top of the generative AI arms race.” PowerSchool Holdings – Baird, Outperform Rating “On average, PowerSchool customers use only two of the company’s 19 available products, and as existing customers Going more digital, presenting considerable upside over time. PowerSchool has been successful in driving higher cross-sell activity, with 80% bookings from existing customers. By the end of 2022, PowerSchool will be at 5,000 Generated $630 million in ARR from more than 10,000 students, with an estimated $3 billion addressable opportunity through existing account growth from existing products. “