Top Wall Street analysts say buy stocks such as META & CMG

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Top Wall Street analysts say buy stocks such as META & CMG

Exterior of a redesigned Chipotle restaurant

Source: Chipotle Mexican Grill

With market conditions as uncertain as they are right now, it may be prudent to take a long-term approach and turn to experts for guidance.

Here are five stocks picked by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performance.

Wynn Resorts

Wynn Resorts (WYNN) reported higher-than-expected adjusted loss per share for the fourth quarter. Nonetheless, investors were pleased with management’s comment on better times, helped by continued strength in Las Vegas and Macao’s reopening after China’s tight Covid lockdowns.

Deutsche Bank analyst Carlo Santarelli thinks Wynn Macau’s future margin profile is “underestimated”. Additionally, he expects the reduction in the company’s financial leverage to be “quick and predictable throughout 2023.”

“Given the resurgence of Macau, continued strength and near-term visibility in Las Vegas, and what we view as stability at Encore Boston Harbor, our estimates for 2023 and 2024 are higher in all three regions,” Santarelli said.

Santarelli also noted that the stock’s valuation is reasonable as the company is still in the early stages of Macau’s recovery cycle. Santarelli reiterated his buy rating and increased his price target on Wynn to $128 from $106. (See Wynn Blogger Opinions and Opinions on TipRanks)

Santarelli’s recommendation is worth considering as he ranks 26th out of more than 8,000 analysts tracked by TipRanks. Additionally, 67% of its reviews were successful, generating an average return of 21.7% per review.

Chipotle Mexican Grill

Burrito chain Chipotle Mexican Grill’s (CMG) Lower than expected fourth quarter results reflected the impact of inflation on consumer spending. However, the company reassured investors that transaction trends will turn positive in 2023, setting its estimate of comparable revenue growth for the first quarter in the high single digits.

Chipotle plans to continue expanding its footprint, which stood at 3,187 restaurants at the end of 2022. By 2023, 255 to 285 new locations are to be opened.

Baird analyst David Tarantino, ranked 320th out of 8,346 analysts on TipRanks, lowered his estimate of earnings per share for 2023 after lackluster fourth-quarter results and a lower-than-expected first-quarter margin outlook. Still, Tarantino remains bullish on Chipotle.

“We have anticipated management to take the appropriate operational steps to drive structural improvements in transport throughout 2023 and we anticipate signs of progress on this front to help resolve the price/transport debate and the.” Bringing focus back to the meaningful economy value that CMG can create through the expansion of the high ROIC entity,” said Tarantino

The analyst reiterated his Buy rating on Chipotle stock, increasing the price target to $1,900 from $1,800. Sixty-six percent of Tarantino’s ratings have generated returns, with each rating yielding an average return of 10.6%. (See CMG Insider Trading Activity on TipRanks)

meta platforms

Social media giant meta platforms (META) is next on our list. Meta has bounced back this year after a disastrous run in 2022. Last year’s troubles stemmed from a slowdown in online ad spending and mounting losses from the company’s Reality Labs division, which includes its Metaverse projects.

Despite weak earnings, the stock rose in response to recent results as investors hailed Meta’s cost-control measures and a $40 billion increase in share buyback authorization. Meta already had nearly $11 billion left under its existing buyback plan.

Ivan Feinseth, an analyst at Tigress Financial Partners, emphasized that Meta’s “most valuable asset” is its huge and growing user base. Daily active people, or DAP (the number of people who use at least one of the company’s core products each day — Facebook, WhatsApp, Instagram, or Messenger) rose 5% to 2.96 billion in the fourth quarter.

Additionally, Feinseth predicts that Meta’s performance will be propelled by a “new, more cost-effective data center structure” capable of supporting artificial intelligence (AI) and non-AI workloads.

Feinseth increased his price target for Meta from $260 to $285 and reiterated his buy rating, believing it can outperform the competition due to its massive user base and ability to generate significantly higher returns for advertisers.

Feinseth is currently ranked 126th among over 8,300 analysts on TipRanks. Additionally, 65% of its reviews were successful, with each generating an average return of 13.5%. (See Meta Platforms Hedge Fund Trading Activity on TipRanks)

CyberArk Software

Digital transformation, accelerated cloud adoption and geopolitical tensions have led to an increase in cyber threats and demand for cybersecurity companies such as CyberArk (CYBR).

CyberArk, a leading cybersecurity company, has successfully transitioned from perpetual licenses to a subscription model, resulting in more reliable and predictable revenue.

Mizuho analyst Gregg Moskowitz noted CyberArk’s impressive 45% annual recurring revenue (ARR) growth through the end of 2022 and ARR growth prospects in the range of 28% to 30% through the end of 2023. The analyst also noted, that CyberArk ended 2022 with more than 1,300 customers generating over $100,000 in ARR, a 40% increase year-over-year.

Moskowitz reiterated a buy rating on CyberArk stock and a price target of $175, saying, “We continue to view CYBR as a key beneficiary of an elevated threat landscape that has amplified the need for privileged access and identity management.” He is also optimistic about the transition from CyberArk to a recurring revenue model will lead to better finances.

Moskowitz ranks 236th among more than 8,000 analysts on TipRanks. Its reviews have a 58% success rate, with each delivering an average return of 13.8%. (See CyberArk stock chart on TipRanks)

Micron technology

semiconductor company micron (IN) has been under pressure in recent quarters due to lower demand in several end markets, particularly PCs. In the first quarter of fiscal 2023 (ending Dec. 1), the company’s revenue plummeted 47% due to lower shipments and a sharp drop in prices.

In response to the difficult business conditions, Micron has reduced capital spending and implemented cost-cutting initiatives. In December, the company said it would cut its workforce by nearly 10% through 2023 and pause bonuses for the year. Share buybacks have also been suspended for the time being.

Despite the ongoing challenges, Mizuho analyst Vijay Rakesh has upgraded Micron to buy from hold and raised its price target to $72 from $48. Rakesh acknowledged that short-term headwinds remain from high inventories, lower demand for PCs, mobile phones, servers and lower memory prices. Still, he believes we’re approaching a “cyclical bottom.”

Rakesh stated, “We believe storage is better positioned for 2H23/2024E with supply/investment cuts, inventory corrections and a better pricing environment.”

Rakesh is ranked 73rd out of more than 8,300 analysts on TipRanks with a 61% success rate. Each of his reviews has delivered an average return of 19.7%. (See Micron Financial Statements on TipRanks)