Top Wall Street analysts favor these stocks for attractive long-term potential
Stock Market Update and Analyst Picks #
The U.S. stock market experienced a strong September, buoyed by the Federal Reserve’s interest rate cut. However, rising geopolitical tensions in the Middle East could potentially impact investor sentiment in the coming month.
Investors may benefit from focusing on long-term growth potential rather than short-term market fluctuations. With this in mind, here are three stocks that have garnered favorable attention from top Wall Street analysts.
CyberArk Software #
CyberArk Software, a cybersecurity company specializing in identity security, has recently impressed analysts with its quarterly results and raised full-year guidance. The company’s strong position in the Privileged Access Management (PAM) market and potential for growth in related areas such as Access, Secrets, Endpoint Privilege Management, and machine identities have been highlighted.
Analysts expect CyberArk to maintain robust growth, driven by demand for identity security and expansion opportunities beyond its core market. The recent acquisition of a machine identity specialist is also anticipated to contribute positively to the company’s growth and margins.
With an estimated total addressable market of $60 billion, analysts project CyberArk’s organic growth to remain above 20% for several years, accompanied by increasing profitability.
Uber Technologies #
Ride-sharing and food delivery platform Uber Technologies has received positive attention from analysts following recent management meetings. The company’s management expressed confidence in achieving a three-year compound annual growth rate of mid- to high-teens for gross bookings, supported by stable macroeconomic conditions and strong demand.
Uber’s expanding advertising business, particularly in Uber Eats and grocery delivery, has been noted as a significant growth driver. The company’s ad business is currently on a $1 billion run-rate, representing about 1% of delivery gross bookings, with expectations for further growth in the grocery segment.
Additionally, Uber’s increasing interest in autonomous vehicles (AV) has been highlighted, with the company potentially adding value to AV technology providers through increased demand and ecosystem development.
Meta Platforms #
Social media giant Meta Platforms recently held its Meta Connect event, showcasing new products and innovations. The company introduced its latest virtual reality headset, Quest 3S, and presented a prototype of augmented-reality smart glasses. Meta also unveiled new features for its AI chatbot.
Analysts have responded positively to these announcements, citing significant opportunities for core monetization expansion through AI and generative AI features. The ongoing momentum in Messaging and positive trends in social media advertising have also contributed to optimistic outlooks.
Meta’s progress in its Reality Labs division and advancements in AI and generative AI technologies have been particularly well-received. The company’s large language model, Llama, is viewed as potentially giving Meta an edge over competitors in the AI assistant market.
In conclusion, these three stocks have attracted attention from top analysts due to their strong market positions, growth potential, and innovative technologies in their respective sectors.