As 2024 unfolds, investors are finding themselves in a challenging environment characterized by macroeconomic uncertainties. With concerns about inflation and its subsequent effects on interest rates increasingly dominating financial conversations, it is crucial for investors to identify stocks that show strong financial backgrounds and considerable potential for long-term growth. By focusing on stocks highlighted by leading Wall Street analysts, investors can optimize their portfolios amidst economic turbulence. Let’s delve into three stocks that analysts have recently endorsed, offering insights into their potential for growth.
Uber Technologies, a well-known ride-sharing and food delivery platform, has been showing promising signs despite facing some headwinds. While the company reported revenue and earnings that surpassed market expectations for Q3 2024, its gross bookings failed to meet the anticipated targets. Nevertheless, Mizuho analyst James Lee maintains a positive outlook, reiterating a buy rating with a price target of $90. Lee suggests that 2025 will mark a crucial year for Uber as it invests heavily to drive future growth.
Lee anticipates that these investments, while potentially compressing earnings in the short term, will position Uber for a robust compound annual growth rate (CAGR) of 16% in core gross bookings from FY23 to FY26. He expresses confidence in the company’s capacity to achieve high EBITDA growth rates as outlined in the company’s analyst day projections. Notably, concerns surrounding Uber’s Mobility segment’s growth are deemed exaggerated by Lee, who forecasts growth in gross bookings in the high-teens for FY25 based on comprehensive research. The food delivery sector is also expected to sustain elasticity and adherence to market shares, specifically due to its increasing diversification and expansion into new verticals.
With Lee ranking as one of the more reliable analysts tracked by TipRanks, backed by consistent profitability in his ratings, Uber appears to be a compelling inclusion for investors seeking opportunities in resilient companies.
In the realm of cloud monitoring and security, Datadog has emerged as a firm to watch. The company recently unveiled better-than-expected results for Q3 2024, prompting Monness analyst Brian White to remain optimistic about its prospects by reiterating a buy rating and assigning a price target of $155. Datadog distinguishes itself through its cautious yet innovative approach to the ongoing generative AI trend, which has become a buzzword in the tech world. White points out the company’s relative success compared to industry counterparts, even while facing a demanding software landscape.
A notable element of Datadog’s performance is its exponential growth in AI-related revenue, which increased significantly over several quarters. As White indicates, more than 6% of the company’s annual recurring revenue (ARR) is now derived from AI-native customers, showcasing a solid trajectory that investors should not overlook. The services offered, such as LLM Observability and its new Bits AI assistant, place Datadog squarely in the future of AI development.
White’s standing as a leading analyst underscores his assertions about Datadog’s growth potential and premium market positioning, particularly in the rapidly evolving observability and AI sectors. The company’s recent total returns and projections suggest that it is well-poised to leverage the upcoming wave of investment in generative AI.
The semiconductor industry has witnessed exceptional growth due to advances in AI technology, with Nvidia leading the charge. As an essential provider of graphics processing units (GPUs) necessary for developing and implementing AI models, Nvidia’s demand is soaring. After a conversation with NVIDIA’s CFO Colette Kress, JPMorgan analyst Harlan Sur reaffirmed a buy rating with an ambitious price target of $170. Kress highlighted the company’s ongoing commitment to scaling the production of their Blackwell platform, which is significant even amidst supply chain challenges.
Sur emphasizes the long-term growth potential Nvidia has within the data center market, which is projected to flourish in 2025. The company’s focus on accelerated computing solutions separates it from competitors who rely on application-specific integrated circuits (ASICs). This pivotal advantage, combined with potential expansions into markets like AI-driven personal computers, signifies Nvidia’s potential for continued profitability.
Given Sur’s impressive analytical track record, Nvidia’s stock is likely to appeal to growth-oriented investors. His substantial return figures reinforce the notion that Nvidia will remain a frontrunner in the tech landscape, benefiting from virtually insatiable demand across its operational sectors.
As the year progresses, the financial landscape remains smeared with uncertainty. However, insights from adept analysts point towards several stocks—such as Uber Technologies, Datadog, and Nvidia—that stand out due to their robust business models and future-oriented strategies. By carefully evaluating these selections, investors can effectively navigate the challenges of today’s volatile market, ensuring their portfolios remain resilient in the face of economic fluctuations.