Wall Street Favorites: 3 Nasdaq Stocks With Strong Buy Ratings for June 2024


  • These strong buy Nasdaq stocks are feeling the love from analysts. 
  • Broadcom (AVGO): The company just issued strong financial results and is splitting its stock. 
  • Costco (COST): Analysts love the way this retailer is growing its e-commerce sales. 
  • Diamondback Energy (FANG): One of the few oil producers with a “strong buy” rating on its stock.  
strong buy nasdaq stocks - Wall Street Favorites: 3 Nasdaq Stocks With Strong Buy Ratings for June 2024

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Analysts love certain stocks. Driven by strong financial results and other catalysts, analysts favor certain stocks and continuously raise their ratings and price targets on the company’s shares. Many stocks that have enjoyed big runs over the past 12 to 18 months continue to receive the analyst community’s highest rating of “strong buy.”

Paying attention to analyst ratings is instructive as it indicates sentiment toward a stock. The price target can also show whether people think the shares will continue running higher, have peaked, or are likely to decline. In the end, analyst ratings should form one part of the due diligence that investors perform on a stock before deciding whether to buy it or not.

Wall Street favorites are three Nasdaq stocks with strong buy ratings for June 2024.

Broadcom (AVGO)

broadcom (AVGO) logo outside office building
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Chipmaker Broadcom (NASDAQ:AVGO) has a “strong buy” rating. The stock has 21 “buy” ratings and two “hold” ratings. There are no “sell” ratings. AVGO stock has been on fire since the company issued its latest financial results and announced a 10-for-1 stock split that will go into effect on July 15. So far this year, Broadcom stock has risen 60%, making it a top performer in the Nasdaq 100 index.

Despite the huge run up in its share price this year, analysts see more runway ahead for Broadcom stock. The median price target on the shares is nearly 10% higher than where they’re presently trading. Broadcom is seen as a big beneficiary of the current artificial intelligence (AI) boom. The company is also getting a revenue boost from VMware, the enterprise software company it acquired for $69 billion in 2023.

AVGO stock has doubled in the last 12 months and has risen more than 500% over the past five years.

Costco (COST)

Costco Stock May Be the Market’s Top Recession Pick
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Although it might be a grocery retailer, Costco (NASDAQ:COST) trades on the Nasdaq exchange, and analysts currently rate the stock a “strong buy” as well. Among 25 analysts, 19 have a “buy” rating on the stock, while the rest rate it a “hold.” Several analysts have upgraded their rating and price target on COST stock after the company issued its financial results for this year’s first quarter.

Loop Capital, for example, just lifted its price target on Costco to $940 a share from $890 previously. The new price target is 10% higher than the stock’s current level. Loop Capital said it likes Costco’s leverage potential. Several other analysts want to know how Costco is growing its e-commerce sales at an aggressive pace even as its same-store sales continue to rise. COST stock is up 63% in the last 12 months, including a 32% gain this year.

Diamondback Energy (FANG)

Diamondback Energy (FANG) logo on its website to represent oil stocks. FANG stock
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With crude oil trading below $80 a barrel, there aren’t many oil stocks with “strong buy” ratings right now. Diamondback Energy (NASDAQ:FANG) is an exception. Among 16 analysts who track the company’s progress, 14 rate the stock a “buy,” and two have a “hold” rating. Best of all, analysts see big upside potential for the energy company’s stock price. The median price target is 23% higher than where the shares are trading currently.

Like most oil producers, FANG stock and crude prices have slumped recently. However, investors should see this as a buying opportunity. Analysts are bullish on Diamondback Energy’s future following its 26 billion acquisition of privately held Endeavor Energy. Once the deal is completed, Diamondback Energy will be one of the largest producers in the oil-rich Permian Basin of Texas.

FANG stock is up 45% in the last year, including an 18% gain in 2024.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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/2024/06/wall-street-favorites-3-nasdaq-stocks-with-strong-buy-ratings-for-june-2024/.

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