In the midst of macro pressures and geopolitical tensions impacting the stock market, it can be challenging for investors to navigate their portfolios. However, focusing on long-term prospects and filtering out short-term noise can lead to success. According to TipRanks, a platform that ranks analysts based on their past performance, there are three stocks favored by the Street’s top professionals. One of these picks is membership-only warehouse chain Costco Wholesale (COST).
Recently, Costco announced an increase in its membership fees, with the annual fee for “Gold Star” membership rising to $65 and the premium “Executive Membership” fee increasing to $130. Despite this fee hike being the first one since 2017, Jefferies analyst Corey Tarlowe remains optimistic about Costco’s potential. In fact, Tarlowe raised the price target for COST stock to $1,050 from $860, believing that the membership fee increase will positively impact the company’s earnings. Historically, Costco has raised its fees every 5.5 years on average, but this time, there was a seven-year gap. Tarlowe sees this fee hike as timely, given the strong membership health and solid June sales numbers. He predicts that the higher fee will contribute to increased sales and earnings before interest and taxes, enhancing Costco’s profitability over the next two years.
Another stock endorsed by top analysts is database software company MongoDB (MDB). Despite a dip in May due to weak guidance for the fiscal second quarter, MDB remains an attractive investment opportunity. Tigress Financial analyst Ivan Feinseth lowered the price target to $400 from $500 but maintained a buy rating on the stock. According to Feinseth, the sell-off in MDB presents a favorable buying opportunity, especially considering the company’s growth potential among developers and the momentum of its Atlas DBaaS product. Moreover, with the incorporation of AI-powered capabilities, MDB aims to enhance developer productivity, application development, and enterprise adoption trends. Feinseth is optimistic about MDB’s expansion into various verticals such as health care, insurance, manufacturing, and automotive production. The analyst believes that MDB’s solid DBaaS platform, with superior functionality and cost advantages, positions the company for success in the long run.
The third stock recommended by top Wall Street analysts is semiconductor giant Nvidia (NVDA). The increasing demand for Nvidia’s advanced graphics processing units driven by the generative AI wave has propelled the company’s performance. Despite a strong rally in the stock’s year-to-date performance, Goldman Sachs analyst Toshiya Hari believes that there is still room for growth. Following a meeting with Nvidia’s CFO Colette Kress, Hari reiterated a buy rating on NVDA with a price target of $135. The analyst is convinced of Nvidia’s ability to sustain its dominance through continuous innovation in compute, networking, and software. With the upcoming release of Nvidia’s next-generation AI graphics processor, Blackwell, the company is poised to benefit from improved supplier positioning for the Blackwell ramp. Hari anticipates significant revenue contribution from the Blackwell platform in the future, further solidifying Nvidia’s market position. Despite growing competition, Nvidia’s large installed base and rapid deployment of generative AI models give the company a competitive edge in the market.
By following the investment advice of top Wall Street analysts and focusing on long-term prospects rather than short-term fluctuations, investors can make informed decisions to navigate the current challenges in the stock market. Stocks like Costco Wholesale, MongoDB, and Nvidia represent compelling opportunities for growth and profitability in the coming years.