Wall Street analysts conduct plenty of research before deciding which stocks to recommend. It’s part of their full-time jobs which makes them more present in the industry than most retail investors.
Investors can save a lot of time by reviewing analysts’ recommendations. However, an investor shouldn’t take an analyst’s recommendation at face value. Instead, investors should consider what the analyst says about the stock they are recommending. If the analyst brings up several points that make you excited about the stock, then it may be a good opportunity. However, it’s also possible that an analyst focuses on the wrong area or misses an important detail.
Buying long-term stocks can save you even more time since you only have to buy them once and then let them sit in your portfolio. Investors who feel confident about a company can easily accumulate more shares without doing as much research the next time. Investors looking for long-term stocks may want to consider these Wall Street favorites.
Nvidia (NASDAQ:NVDA) has been a juggernaut for investors. The company is a leader in artificial intelligence and has experienced exceptional growth in multiple business verticals.
It’s no wonder that Nvidia topped the list as a Wall Street favorite. Shares have appreciated by 231% over the past year and have gained roughly 1,300% over the past five years. The stock is even off to a strong start with year-to-date (YTD) gains exceeding 10%.
Nvidia’s exceptional revenue and earnings growth have fueled the rally and made the stock look relatively affordable. Shares trade at a 28-forward P/E ratio. The Q3 FY24 206% year-over-year (YOY) revenue growth and 1,259% YOY net income growth suggest the valuation will get more attractive throughout the year. Also, sequential growth for those metrics has been impressive.
In the press release, Jensen Huang stated that Nvidia GPUs, CPUs, networking, AI foundry services, and Nvidia AI Enterprise software “are all growth engines in full throttle.”
Further, Nvidia is at the center of the generative AI boom and stands to reward shareholders. Despite a big rally over several years, Nvidia stock has more room to run.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) is another top-rated long-term stock that Wall Street analysts love. The average price target from 21 analysts projects a 45% upside. The highest price target of $275 suggests the stock can go up by over 70%.
However, solar panels and other clean energy sources hit a speed bump last year. First Solar lost 11% over the past year which is far better than competitor Enphase‘s (NASDAQ:ENPH) performance. FSLR’s 230% gain over the past five years paints a better picture of its achievement without headwinds.
The company has been reporting good financials during the sector’s contraction. Net sales reached $801 million in Q3 of 2023, representing a 27.4% YOY growth rate. Net income grew by 645.9% YOY, and the company has a $1.3 billion cash position.
Additionally, First Solar was already performing well during a slower market for solar panels. However, lower interest rates will reignite demand. FSLR seems poised to be a top beneficiary and can reward investors who load up now.
Cybersecurity stocks have received a lot of love from Wall Street analysts over the years. With cyber attacks on the rise, people will always need to keep their data safe. Small businesses and corporations invest considerable money into their cybersecurity defenses by enhancing software.
Companies like Crowdstrike (NASDAQ:CRWD) offer top-notch solutions and generate annual recurring revenue. The stock has been a winner for long-term investors with a 190% gain over the past year. Shares have gained an even more impressive 342% over the past five years.
Also, a shift to profitability gives investors another reason to be bullish on the cybersecurity leader. The company delivered record profitability in Q3 of 2024 while increasing revenue by 35% YOY.
Finally, Crowdstrike has 35 buy ratings and one hold rating from 36 analysts. While the 12-month forecast hints at a small downside from the current price, new analyst price targets have been coming in at above $300/share. Most new analyst price targets based on up-to-date information indicate more upside for the stock.
On this date of publication, Marc Guberti held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.