7 Stocks That Are Creating a Buzz on Wall Street


  • Novo Nordisk (NVO): The company’s weight loss drugs continue to generate buzz in investing circles.
  • Toll Brothers (TOL): Viewed as one of the best ways to play the housing market right now. 
  • Broadcom (AVGO): Looking for an alternative to Nvidia’s stock? Consider this chipmaker. 
  • Read on for other stocks to buy that are creating a buzz on Wall Street!
Stocks Creating Buzz - 7 Stocks That Are Creating a Buzz on Wall Street

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What a difference a Fed meeting can make. Stocks are again ripping higher after the U.S. Federal Reserve signalled that it still expects to deliver three interest rate cuts this year. Both the Dow Jones Industrial Average and S&P 500 indices are at all-time highs as equities push upwards. At the same time, the market rally is broadening out beyond mega-cap technology stocks. Companies that cover a broad swath of the economy are starting to see their stocks join the rally in equities. While these stocks may not generate a lot of media headlines, they are quickly being bought up by traders and hedge funds across Wall Street on expectations of future outperformance. These are companies that dominate their respective industries and consistently post strong financial results and offer upbeat forward guidance. As the market runs to new heights and the rally broadens out, it’s important for investors to know where the opportunities lie. Here are seven stocks that are creating a buzz on Wall Street.

Novo Nordisk (NVO)

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Danish pharmaceutical company Novo Nordisk (NYSE:NVO) is generating a lot of buzz as sales of its Wegovy and Ozempic weight loss drugs accelerate. NVO stock recently jumped 10% to a record high. This followed company reports of positive results from a trial of a new weight loss drug that will be taken in pill form rather than as an injection. So far in 2024, Novo Nordisk’s stock is up 30%. Over 12 months, the share price is up 83%.

While clinical trials of its weight loss pill called Amycretin show promise, new benefits from Ozempic and Wegovy continue to be discovered. Novo Nordisk recently reported late-stage trial results found that Ozempic cut the risk of kidney disease and death from kidney and cardiovascular disease by 24% in people with diabetes. The results add to mounting evidence of the broader health benefits associated with its weight loss drugs.

eBay (EBAY)

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Shares of eBay (NASDAQ:EBAY) have suddenly caught fire after languishing for years. In the last month, EBAY stock has jumped 20% higher. This is its best performance since the outset of the Covid-19 pandemic in 2020. The shares are marching higher after the company raised its dividend payment to shareholders by 8%. EBAY also announced a new $2 billion stock repurchase program.

Moving forward, eBay will pay shareholders a quarterly dividend of 27 cents, up from 25 cents a share previously. The company now pays a healthy dividend that yields greater than 2%. The dividend hike and stock buyback program were announced alongside quarterly results that beat analysts’ estimates by a wide margin, helping to restore some confidence in EBAY stock. The company’s share price is now up 42% over five years.

Lowe’s (LOW)

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Home improvement retailer Lowe’s (NYSE:LOW) is also getting some love from Wall Street. Analysts at Mizuho Financial Group (NYSE:MFG) just initiated coverage of LOW stock with a “buy” rating and $280 price target, implying 13% upside from current levels. Mizuho also named Lowe’s a “Top Pick” for spring, saying the company should benefit from the upcoming gardening season.

LOW stock is up 13% on the year, bringing its 12-month gain to 26%. The company’s stock has been trending upwards on the back of strong earnings. Recently, Lowe’s reported earnings per share (EPS) of $1.77 compared to $1.68 that was expected for the fourth quarter of 2023. Revenue totaled $18.60 billion versus $18.45 billion that was forecast by analysts. With the home improvement market picking up, LOW stock should benefit.

Broadcom (AVGO)

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Broadcom (NASDAQ:AVGO) is generating buzz as an alternative AI chipmaker to Nvidia (NASDAQ:NVDA). On a recent earnings call, Broadcom’s management team stressed that they’re seeing strong demand for their microchips in AI data centres. Many on Wall Street also like that Broadcom’s semiconductors are also used in other sectors, such as broadband, server storage, and industrial applications.

AVGO stock is up 14% this year and 93% over the last 12 months. While impressive, the gains in Broadcom’s stock pale in comparison to the 87% year-to-date increase and 248% 12-month rise in NVDA stock. Still, some analysts favor Broadcom’s stock, noting that it likely has more room to run and is less likely to be in bubble territory than Nvidia. Also, Broadcom’s chips are not all in the AI basket and the company is more diversified.

Toll Brothers (TOL)

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If high interest rates are causing trouble in the housing market, someone forgot to tell Toll Brothers (NYSE:TOL). The luxury home builder’s share price has gained 110% over the last 12 months, including a 20% increase this year. Despite the gains, TOL stock still looks inexpensive trading at nine times future earnings estimates. For a lot of people on Wall Street, Toll Brothers is seen as the best way to play the U.S. housing market right now.

For the final quarter of 2023, Toll Brothers produced financial results that exceeded Wall Street forecasts. The company reported EPS of $2.25 on revenue of $1.95 billion. Analysts had expected earnings of $1.78 per share and $1.90 billion in revenue. Citing a strong start to the year, Toll Brothers raised its 2024 guidance, saying it now expects to deliver 10,000 to 10,500 homes, up from a previous estimate of 9,850 to 10,350 units.

Lyft (LYFT)

the Lyft (LYFT) logo shown on a mobile phone.
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Shares of ride-hailing and delivery company Lyft (NASDAQ:LYFT) are suddenly hot again and generating buzz. The company’s stock gained 24% on Valentine’s Day this year after management announced much better-than-expected financial results for Q4 2023. Notably, the company swung from a $416.5 million loss a year earlier to a profit of $222.4 million in the final months of last year.

LYFT stock is now up 80% over the past 12 months and continues to exhibit strength. After struggling with a downturn coming out of the pandemic, Lyft has got its house in order again and is seeing an increase in bookings and sales. Lyft reported EPS of 16 cents, which was double the profit of the 8 cents expectation from Wall Street. Revenue in Q4 2023 totaled $1.22 billion, matching Wall Street expectations.

Spotify Technology (SPOT)

Close up view of a smartphone with Spotify (SPOT) logo on display. Laptop and headphone on background. New technology, social media, network, liquid music concept.
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Spotify Technology (NYSE:SPOT) has become buzzworthy as a streaming stock that’s actually rising. While the stocks of companies focused on TV and movie streaming sink, audio streaming service Spotify’s share price is marching higher. In the last 12 months, SPOT stock has doubled, having increased 34% so far in 2024. Wall Street sees Spotify as the dominant player in the streaming of music and podcasts.

Indeed, the Swedish company continues to demonstrate strong user growth. Monthly active users on Spotify’s platform grew 5% in the final quarter of 2023, reaching 602 million people worldwide. That surpassed analysts’ forecasts of 601 million global users. Importantly, the number of subscribers to Spotify’s more expensive premium service rose 4% in Q4 2023 to 236 million, also beating Wall Street estimates.

On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/7-stocks-that-are-creating-a-buzz-on-wall-street/.

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