The first stock pick favored by the Street’s top pros is memory chipmaker Micron Technology (MU). Investors were impressed with its strong quarterly performance and solid guidance, particularly due to the demand stemming from the artificial intelligence boom. Needham analyst Quinn Bolton reiterated a buy rating on MU stock and increased the price target to $120 from $100 following the beat-and-raise quarter. Bolton highlighted Micron’s HBM3E memory solution and its impact on revenue estimates, noting that it generated significant revenue in the fiscal second quarter and has already sold out for the calendar year 2024. The analyst expects Micron’s gross margins to increase through fiscal 2024 and into fiscal 2025, driven by favorable pricing and product mix. Overall, Bolton sees Micron as a key beneficiary of strong data center demand, automotive semi content, graphics, and industrial automation.
Athletic apparel maker Lululemon is another top stock pick recommended by Wall Street analysts. Although the company reported better-than-expected results for the fourth quarter of fiscal 2023, its shares fell due to disappointing guidance reflecting soft sales in the U.S. Guggenheim analyst Robert Drbul slightly lowered his fiscal 2024 earnings estimates but reiterated a buy rating on the stock. Despite a slower start in the U.S. for the first quarter, management remains optimistic about growing Lululemon’s domestic business and gaining market share. The strong momentum in Lululemon’s international business in the fourth quarter is also noteworthy. Drbul believes that Lululemon’s goal of quadrupling its international revenue by the end of fiscal year 2026 will drive higher overall revenue and operating margins, justifying its premium multiple.
The list of top stock recommendations also includes semiconductor company Broadcom (AVGO), widely viewed as a key beneficiary of the generative AI wave. Following a recent investor meeting where the company discussed its innovations, Susquehanna analyst Christopher Rolland reiterated a buy rating on AVGO stock with a price target of $1,650. Rolland highlighted Broadcom’s solid portfolio across AI accelerators and networking products, emphasizing the company’s ability to meet its annual AI sales target. He noted Broadcom’s confidence in Ethernet over InfiniBand for AI applications, as well as the efficiency of the company’s customized chips in consumer AI applications. Rolland also praised Broadcom’s strategic acquisitions, indicating that the company is one of the best integrators in the semiconductor industry.
These top stock picks recommended by Wall Street analysts offer investors insight into companies with strong fundamentals and growth potential. While short-term uncertainties may persist, focusing on long-term trends and solid business strategies can lead to attractive returns for investors.
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