As we move into the second half of the year, we wanted to find five stocks that top analysts are recommending right now. This is traditionally a time of seasonal decline, hence the saying “sell in May and go away,” so we wanted to combat this notion with some of the most compelling investment ideas.
To do this, we used TipRanks’ stock screener to discover mega- and large-cap stocks that have a “strong buy” analyst consensus. We then narrowed the list down to the absolute best stocks, which have only “buy” ratings from the analyst community.
That’s correct: No holds, no sells. Even better, we limited the ratings to only those from Wall Streets’s top-performing analysts defined by a particularly high success rate and average return per recommendation.
Now let’s dig down and look at five of Wall Street’s best-looking stocks:
Analysts’ Best Stocks to Buy: Broadcom (AVGO)
Broadcom Ltd (NASDAQ:AVGO) has an incredible 24 “buy” ratings in the previous three months, ranking the semiconductor leader among the most bullish outlooks on TipRanks. On July 5, top RBC Capital analyst Amit Daryanani gave AVGO a “Top Pick” rating.
He points out that “AVGO has beat Street quarterly EPS estimates every quarter since its IPO” and praises the Wireless segment which “remains a growth engine.” Management has kept a disciplined approach to acquisitions and buys companies with cost-cutting potential, says Daryanani approvingly.
Daryanani, who is ranked #21 out of the 4,500 analysts ranked by TipRanks, placed a $270 price target on the stock on June 27. His target comes in just below Broadcom’s average analyst price target from only best-performing analysts of $277, which suggests AVGO has big upside potential of 16% from its current $239 share price.
Analysts’ Best Stocks to Buy: Visa (V)
Online payments company Visa Inc (NYSE:V) has a strong rating from the Street with eight back-to-back “buy” ratings in the past three months. Mizuho Securities’ Thomas McCrohan has just initiated coverage on Visa with a “buy” rating and a very confident $115 price target (22% upside potential).
He says: “We anticipate sustained high-teen EPS growth over the next several years as a result of new markets (India), growing digital acceptance, and pricing (Europe).”
McCrohan, who has a 79% success rate and 14.1% average return on his recommendations, also lists the FIFA 2018 World Cup and 2020 summer Olympics in Tokyo as potential stock catalysts.
Analysts’ Best Stocks to Buy: Align Tech (ALGN)
Analysts have been busy reiterating their “buy” ratings for Align Technology, Inc. (NASDAQ:ALGN), which has seen shares spike from $90 to $150 in just half a year.
On June 26, five-star Leerink Swann analyst Richard Newitter raised his price target dramatically to $194 from $149.
Newitter now believes that ALGN can grow by over 30% over the next 12-months following his recent orthodontist checks. He says he now has increased confidence that invisible teeth aligners for teenagers and adults will keep accelerating within a “large and under-penetrated” North America aligner market.
The stock has received eight “buy” ratings in the past three months from top analysts, while its average analyst price target of $160 is over 5% above the current share price.
Analysts’ Best Stocks to Buy: Delta Airlines (DAL)
In the past year, Delta Air Lines, Inc. (NYSE:DAL) has only received one “hold” rating four months ago. Indeed, in the past three months, DAL stock has received “buy” ratings from five top analysts who have an average DAL price target of $67, or 21% upside from the current share price.
Merrill Lynch’s Andrew Didora has this to say on the stock:
“We estimate core industry RASM (revenue per available seat mile) can remain steady through year end, but the third quarter will likely be better for those with declining capacity and easier comps (LUV, DAL). We maintain our positive view on the group as margins expand and valuations are in line with historical ranges.”
Bearing this in mind, Didora moved his price target up to $71 from $64 on June 29.
Analysts’ Best Stocks to Buy: Cigna Corp (CI)
Cigna Corporation (NYSE:CI), an American worldwide health insurer, has a unanimous “buy” mandate from eight of the Street’s top analysts in the previous three months. Interestingly even the lowest price target on the stock of $175 still represents an upside from the current share price, while the average analyst price target stands comes in at $184 (9% upside).
A key supporter of the stock is Oppenheimer’s Michael Wiederhorn. He is ranked #15 out of all the 4,592 analysts on TipRanks — with a 74% success rate and very high 17% average return per recommendation. Following CI’s analyst day, he gave this strong appraisal of the stock on June 22 with a $185 price target:
“Overall, the business appears on track, as the company continues to push forward in its targeted growth markets. Although the market is well aware of Cigna’s attractive capital position, we believe this value is still not properly embedded in the stock price. As a result, we maintain our Outperform rating and would continue to be buyers of CI.”
Which stocks are the top 25 analysts recommending right now? Find out here.
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