When looking for long-term investment opportunities, investors often turn to the recommendations of Wall Street experts. One such recommendation is Domino’s Pizza (DPZ). Despite macroeconomic uncertainty, the company recently reported a strong performance in the first quarter. Deutsche Bank analyst Lauren Silberman reiterated a buy rating on DPZ stock and increased the price target to $580 from $555. Silberman highlighted the company’s improved gross margin within the supply chain and increased visibility in same-store sales growth outlook. The analyst praised Domino’s revamped loyalty program, strong value proposition, and innovation as key drivers of the traffic growth.
In addition, Silberman noted that Domino’s is benefitting from increased contributions from Uber Eats, thanks to growing marketing efforts and awareness. Overall, the Q1 results reinforced Silberman’s positive view on DPZ, supported by the company’s initiatives to support an increase in same-store sales, accelerating unit growth, and improving franchisee profitability and margins. Despite Silberman’s optimism, it is important for investors to consider the risks associated with investing in a highly competitive industry like the restaurant sector.
Another stock favored by Wall Street experts is burger chain Shake Shack (SHAK). Despite reporting mixed first-quarter results, investors were pleased with the company’s commentary on improving business trends. BTIG analyst Peter Saleh reiterated a buy rating on SHAK stock and increased the price target to $125 from $120. Saleh emphasized the company’s strategic initiatives involving technology (kiosks), enhanced operating model, and greater marketing as key drivers of the company’s growth.
Saleh highlighted the high-teens check growth in kiosk orders compared to traditional in-store orders, indicating consumer preference for customization options available at the kiosks. The analyst expects more sales benefit from the kiosks going forward, in addition to labor savings and efficiency. While Shake Shack’s potential for growth is promising, investors should be cautious of the risks associated with investing in a volatile industry like the restaurant sector.
Tech giant Apple (AAPL) also caught the attention of Wall Street experts with its recent better-than-expected fiscal second-quarter results. Despite a decline in revenue, the company’s announcement of an expanded buyback program had a positive impact on investors. Baird analyst William Power reaffirmed a buy rating on AAPL stock with a price target of $200. Power noted that Apple exceeded his estimates for revenue, earnings per share, and gross margin.
The analyst highlighted the growth in Services revenue, particularly in China, which showed improvement from the previous quarter. Power believes that Apple’s upcoming AI update at its June developer conference could serve as a catalyst for the stock. While Power’s optimism is justified given Apple’s strong execution and growing services contribution, investors should be mindful of the risks associated with investing in the technology sector.
While these three stocks have been favored by Wall Street experts for their growth potential and strong performance, investors should conduct their own research and consider the risks associated with investing in the respective industries. Adopting a long-term mindset and staying informed about market trends are essential for making informed investment decisions.
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