Top Wall Street analysts say buy stocks like META and CMG

With market conditions as uncertain as they currently are, it may be prudent to take a long-term view and turn to the experts for advice.

Here are five stocks picked by top Wall Street analysts, according to TipRanks, a platform that ranks analysts based on past performance.

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Wynn Resorts (WYNN) announced a higher-than-expected adjusted loss per share for the fourth quarter. Nonetheless, investors were pleased with management’s comments about better times ahead, buoyed by continued strength in Las Vegas and the reopening of Macau following China’s strict Covid containment measures.

Deutsche Bank analyst Carlo Santarelli believes Wynn Macau’s future margin profile is “underestimated”. Additionally, he expects the company’s financial debt reduction to be “prompt and effective throughout 2023.”

“Given Macau’s resurgence, continued strength and near-term visibility in Las Vegas, and what we consider stability at Encore Boston Harbor, our estimates for 2023 and 2024 are higher in each of the 3 geographic areas,” Santarelli said.

Santarelli also noted that the stock’s valuation is reasonable as the company is still in the early stages of Macau’s recovery cycle. Santarelli reiterated a buy rating and raised his price target for Wynn to $128 from $106. (See Wynn Blogger Opinions & Sentiment on TipRanks)

Santarelli’s recommendation is worth considering as he ranks 26^e among more than 8,000 analysts tracked by TipRanks. Additionally, 67% of its ratings were successful, generating an average return of 21.7% per rating.

Mexican Grill’s Chipotle Burrito Chain (GCM) lower-than-expected fourth quarter results reflected the impact of inflation on consumer spending. However, the company assured investors that deal trends had turned positive in 2023, setting its estimate for comparable sales growth in the high single digit range for the first quarter.

Chipotle plans to further expand its footprint, which stood at 3,187 restaurant locations at the end of 2022. It aims to open 255 to 285 new locations in 2023.

Baird analyst David Tarantino, who ranks 320th out of 8,346 analysts on TipRanks, lowered his earnings-per-share estimate for 2023 after lackluster fourth-quarter results and a lower-than-expected first-quarter margin outlook. Nonetheless, Tarantino remains bullish on Chipotle.

“We came away with the expectation that management is taking the appropriate operational steps to drive structural traffic improvements as 2023 unfolds, and we expect signs of progress on this front to help resolve the price/ traffic and re-emphasizing the important cost savings that CMG can create through the expansion of high return on investment units,” Tarantino said.

The analyst reiterated a buy rating on Chipotle stock and raised the price target to $1,900 from $1,800. Sixty-six percent of Tarantino’s ratings generated profits, each yielding an average return of 10.6%. (See CMG insider trading activity on TipRanks)

The social media giant Metaplatforms (META) is next on our list. Meta rebounded this year after a disastrous run in 2022. Its troubles last year were due to a slowdown in online ad spending and mounting losses from the company’s Reality Labs division – which includes its Metaverse projects.

Despite weak earnings, the stock rose in reaction to recent results, as investors applauded Meta’s cost-control measures and a $40 billion increase in its buyback authorization. Meta already had nearly $11 billion remaining under its existing buyout plan.

Tigress Financial Partners analyst Ivan Feinseth pointed out that Meta’s “most valuable asset” is its huge and growing user base. Daily Active People or DAP (the number of people using at least one of the company’s main products – Facebook, WhatsApp, Instagram or Messenger, every day) increased by 5% to 2.96 billion in the fourth quarter.

Additionally, Feinseth predicts that Meta’s performance will be fueled by a “new, more cost-effective data center fabric” that is proficient in supporting artificial intelligence (AI) and non-AI workloads.

Feinseth raised his price target for Meta to $285 from $260 and reiterated a buy rating as he believes he can outperform his rivals due to his massive user base and ability to generate significantly higher returns for advertisers.

Feinseth currently ranks 126th among more than 8,300 analysts on TipRanks. Additionally, 65% of its ratings were successful, each generating an average return of 13.5%. (See Meta Platforms Hedge Fund Trading Activity on TipRanks)

Digital transformation, accelerated shift to the cloud and geopolitical tensions have triggered an increase in cyber threats, driving demand from cybersecurity companies such as CyberArk (CYBR).

CyberArk, a leading cybersecurity company, successfully transitioned from perpetual licenses to a subscription model, resulting in more reliable and predictable revenue.

Mizuho analyst Gregg Moskowitz noted CyberArk’s impressive annual recurring revenue (ARR) growth of 45% at the end of 2022 and ARR growth prospects of around 28% at 30% by the end of 2023. The analyst also highlighted that CyberArk ended 2022 with over 1,300 customers generating over $100,000 in ARR, up 40% from the previous year.

Moskowitz reiterated a buy rating on CyberArk shares and a price target of $175, saying, “We continue to view CYBR as the primary beneficiary of an increased threat landscape that has amplified the need for privileged access and identity management.” He is also optimistic that CyberArk’s transition to a recurring revenue model will lead to better financial results.

Moskowitz holds 236^e position among more than 8,000 analysts on TipRanks. His grades have a pass rate of 58%, each offering an average return of 13.8%. (See CyberArk stock chart on TipRanks)

Semiconductor Company Micron (MU) has been under pressure in recent quarters due to lower demand in several end markets, particularly PCs. In the first quarter of fiscal 2023 (ended December 1), the company’s revenue fell 47% due to lower shipments and sharply lower prices.

In response to difficult business conditions, Micron reduced capital expenditures and took initiatives to reduce costs. In December, the company announced it would cut its workforce by nearly 10% in 2023 and suspend bonuses for the year. It also suspended share buybacks for now.

Despite the current challenges, Mizuho analyst Vijay Rakesh upgraded Micron to buy hold and raised its price target to $72 from $48. Rakesh acknowledged that near-term headwinds remain due to high inventories, lower demand for PCs, handsets, servers and lower memory prices. Nevertheless, he thinks we are approaching a “cyclical bottom”.

Rakesh explained, “We believe memory is settling better for 2H23/2024E with supply/capex reductions, backlog inventory correction and a better pricing environment.”

Rakesh ranks 73rd out of more than 8,300 analysts on TipRanks, with a success rate of 61%. Each of its ratings produced an average return of 19.7%. (See Micron’s financial statements on TipRanks)