The earnings results of the tech giants as well as other big names influence the stock market.
However, success or failure in a single quarter should not form the basis for a long-term investment thesis.
Wall Street's top analysts closely follow the key details of a company's quarterly results. However, their recommendations are based on the company's ability to overcome short-term headwinds and generate attractive long-term returns through strong execution.
With that in mind, here are three stocks that are favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on past performance.
Fiserv
This week's first stock pick is a financial services technology company Fiserv (FI). The company recently impressed investors with its positive third-quarter results. Adjusted earnings per share increased 17% year-over-year, with organic sales growth of 15%.
On October 29, Tigress Financial analyst Ivan Feinseth increased his price target on FI stock from $190 to $244 and reiterated a Buy rating. The analyst expects the company to continue to benefit from the ongoing shift to digital payments and increasing adoption of digital transaction solutions.
Feinseth pointed to robust third-quarter revenue growth driven by Fiserv's integrated financial services solutions and solid customer relationships. He explained that the company is expanding its customer base and gaining market share thanks to the scalability of its financial products distribution platform and continuous innovation.
The analyst also highlighted Fiserv's other strategic initiatives, such as expanding its Clover portfolio, offering services to enterprise merchants, expanding real-time payments, expanding into new industries and markets, and partnering with major customers.
Feinseth ranks 183rd among more than 9,100 analysts tracked by TipRanks. Its valuations were profitable 62% of the time and delivered an average return of 13.8%. (See Fiserv Financials on TipRanks)
Boot Barn
We're moving to now Boot Barn (BOOTS), a retailer of western and work-related footwear, apparel and accessories. The company reported better-than-expected results for the second quarter of fiscal 2025. Boot Barn also raised its full-year guidance.
Despite the successful quarter, BOOT stock plunged as investors reacted negatively to the company's announcement of CEO Jim Conroy's planned departure in November. Conroy will take on the role of CEO at the off-price retailer Ross Stores.
Following the release, Baird analyst Jonathan Komp raised his rating on Boot Barn stock to “Buy” from “Hold” but maintained the price target at $167. The analyst believes the stock's post-earnings decline offers a more compelling risk-reward trade-off. Given the strength of the remaining management team, he is surprised by the market's reaction to the CEO's departure.
Komp emphasized that with its plan to open 60 new stores, Boot Barn is on track to maintain annual store count growth of more than 15% in fiscal 2025 for the third consecutive year. He also noted the company's strong comparable store sales momentum across all regions and categories.
“We remain confident in BOOT’s ability to deliver attractive relative earnings growth supported by compelling unit expansion opportunities,” Komp said.
Comp ranks 424th among more than 9,100 analysts tracked by TipRanks. Its valuations were profitable 54% of the time and delivered an average return of 13.5%. (See Boot Barn stock charts on TipRanks)
Chipotle Mexican Grill
Finally, let's take a look at this week's third stock, the restaurant chain Chipotle (CMG). The company recently reported better-than-expected third-quarter adjusted profit, but fell short of revenue expectations despite a 3.3% increase in traffic amid a difficult business environment.
Following the mixed results, Stifel analyst Chris O'Cull reiterated a Buy rating on CMG shares with a price target of $70. The analyst noted that Chipotle's comparable restaurant sales growth of 6% was nearly in line with Wall Street's average estimate of 6.2%. He added that the company experienced accelerated transaction growth in September and the fourth quarter, suggesting a fourth-quarter peer estimate of approximately 5.5%.
O'Cull added that fourth-quarter comps expectations imply full-year comps in the range of 7.5%. Specifically, he expects Chipotle's fourth-quarter sales to benefit from the company's smoked brisket offering, which has driven increased transactions and spending from existing customers and helped attract new customers.
The analyst highlighted the company's focus on improving its throughput, an indicator of how quickly a restaurant can fulfill an order. He pointed out that Chipotle's goal of getting its throughput back to the mid-30s (serving more than 30 entrees per 15 minutes) is now in the mid-20s. The analyst believes the company can improve its throughput given its numerous initiatives, including equipment upgrades, improved operations and transformative technology.
O'Cull is ranked No. 415 among more than 9,100 analysts tracked by TipRanks. His reviews were successful 59% of the time and delivered an average return of 12.6%. (See CMG options activity on TipRanks)