The earnings results of tech giants, as well as those of other big names, influence the stock market.
However, a hit or miss in one quarter should not form the basis for a long-term investment thesis.
Top analysts on Wall Street closely follow the key details of a company’s quarterly results. However, they base their recommendations on the company’s ability to weather short-term headwinds and deliver attractive long-term returns through strong execution.
With that in mind, here are three favorite stocks the best professionals on the streetaccording to TipRanks, a platform that ranks analysts based on their past performance.
Fiserv
This week’s top stock pick is a financial services technology company Fiserv (FI). The company recently impressed investors with its upbeat third-quarter results, with adjusted earnings per share rising 17% year-over-year on organic revenue growth of 15%.
On October 29, Tigress Financial analyst Ivan Feinseth raised his price target on FI stock from $190 to $244 and reiterated his buy rating. The analyst expects the company to continue to benefit from the ongoing transition to digital payments and the growing adoption of digital transaction solutions.
Feinseth noted robust revenue growth in the third quarter, fueled by Fiserv’s integrated financial services solutions and solid customer relationships. He stated that the company is expanding its customer base and gaining market share, thanks to the scalability of its financial products distribution platform and continuous innovation.
The analyst also highlighted Fiserv’s other strategic initiatives, such as expanding its Clover portfolio, offering services to enterprise merchants, expanding more real-time payments, expanding into new verticals and markets, and working with major customers.
Feinseth ranks number 183 among more than 9,100 analysts tracked by TipRanks. His ratings were profitable 62% of the time and delivered an average return of 13.8%. (To see Fiserv Financials on TipRanks)
Boat shed
We are now moving to Boat shed (BOOT), a retailer of western and work-related footwear, clothing and accessories. The company reported better-than-expected results for the second quarter of fiscal 2025. Boot Barn also raised its full-year guidance.
Despite the beat-and-raise quarter, BOOT shares tumbled as investors reacted unfavorably to the company’s announcement about the planned departure from CEO Jim Conroy in November. Conroy will take on the role of CEO at an off-price retailer Ross Stores.
Following the print, Baird analyst Jonathan Komp raised its rating on Boot Barn stock to buy from hold, while keeping the price target at $167. The analyst believes the stock’s post-earnings pullback offers a more attractive risk/reward ratio. He is surprised by the market’s reaction to the CEO’s departure, given the strength of the remaining management team.
Komp emphasized that Boot Barn is on track to maintain annual store count growth of more than 15% for the third year in a row in fiscal 2025, with a plan to open 60 new stores. He also noted robust momentum in the company’s comparable store sales across all regions and categories.
“We remain confident in BOOT’s ability to deliver attractive relative earnings growth, supported by attractive unit expansion opportunities,” Komp said.
Komp ranks number 424 among more than 9,100 analysts followed by TipRanks. His ratings were profitable 54% of the time and delivered an average return of 13.5%. (To see Boot Barn stock charts on TipRanks)
Chipotle Mexican Grill
Finally, let’s look at this week’s third stock, the restaurant chain Chipotle (CMG). The company recently reported better than expected adjusted profit for the third quarter, but fell short of sales expectations despite a 3.3% increase in traffic in a difficult business context.
After the mixed results, Stifel analyst says Chris O’Cul reaffirmed a buy rating on CMG shares with a $70 price target. The analyst noted that Chipotle’s 6% comparable restaurant sales growth was nearly in line with Wall Street’s average estimate of 6.2%. He added that the company experienced accelerated transaction growth in September and into the fourth quarter, estimating Q4 comps at around 5.5%.
O’Cull added that fourth-quarter expectations imply full-year comps in the 7.5% range. In particular, he expects Chipotle’s fourth-quarter sales to benefit from the company’s smoked brisket offering, which has fueled increased transactions and spending from existing customers and helped acquire new customers.
The analyst highlighted the company’s focus on improving throughput, an indicator of how quickly a restaurant can fulfill an order. He noted that Chipotle’s goal of returning throughput to the mid-2030s (with more than 30 entrees per 15 minutes) extends from the mid-2020s today. The analyst believes the company can improve its throughput given its many initiatives, including equipment upgrades, improved operating procedures and transformational technology.
O’Cull ranks 415 among more than 9,100 analysts tracked by TipRanks. His assessments were successful 59% of the time and delivered an average return of 12.6%. (To see CMG options activity on TipRanks)
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