In the midst of earnings season, investors are looking closely at top analysts’ picks for long-term prospects. Netflix (NFLX) takes the spotlight this week with its better-than-expected results for the first quarter of 2024. Despite the disappointment stemming from the company’s decision to halt reporting quarterly subscriber numbers, BMO Capital analyst Brian Pitz remains bullish on NFLX stock. Pitz applauds Netflix for its addition of 9.3 million subscribers, surpassing both BMO’s estimate and the Street’s expectations. He emphasizes the company’s ability to maintain growth in the U.S., thanks to 2.5 million net additions in the first quarter in the U.S. and Canada. Pitz’s optimism stems from Netflix’s $17 billion content investments for 2024, which he believes positions the company for continued growth as traditional TV viewership declines. The analyst anticipates an improvement in operating margin and foresees benefits from Netflix’s focus on advertising as TV ad dollars shift to connected TV (CTV)/online platforms globally. Pitz currently holds the 155th position among 8,700 analysts tracked by TipRanks, with a 75% profitable rating history and an average return of 18.4%.
General Motors (GM) is another top stock pick favored by Wall Street’s elite analysts. Following the automaker’s impressive first-quarter results and optimistic full-year guidance, Goldman Sachs analyst Mark Delaney stands by his buy rating on the stock. Delaney raised the price target to $52, citing improved margin expectations and ongoing cost efficiencies. He highlights GM’s progress in electric vehicle profitability and forecasts a positive variable profit in the EV business by the second half of the year. The analyst acknowledges GM’s capital allocation strategy, expecting higher returns to shareholders beyond 2024. Delaney holds the 256th position among TipRanks’ analysts, with a 61% success rate and an average return of 17.5%.
The restaurant chain Wingstop (WING) also garners attention from the Street’s top analysts, particularly Baird’s David Tarantino. After a thorough analysis of the U.S. total addressable market, Tarantino sees significant upside to Wingstop’s long-term growth potential. With over 2,200 locations globally, WING aims to expand to over 7,000 locations worldwide, including 4,000 in the U.S. BMO’s analysis indicates room for growth in the estimated total addressable market, supporting double-digit unit growth for years to come. Tarantino reiterates a buy rating on WING stock with a price target of $390, emphasizing the company’s strong operating momentum and appealing long-term growth profile. The analyst ranks 264th among TipRanks’ analysts, boasting a 65% success rate and an average return of 11.5%.
Analysts are keeping a close eye on companies’ long-term growth potential amid macro challenges. Netflix, General Motors, and Wingstop emerge as top stock picks according to the Street’s finest, each backed by thorough analysis and bullish projections for the future.