Wall Street Favorites: 7 Growth Stocks With Strong Buy Ratings for June 2024 

  • Investors hunting for stocks that will provide big gains should consider these top-rated growth stocks that have upside potential.
  • Dell Technologies (DELL): Morgan Stanley is pounding the table on this computer maker. 
  • Walt Disney Co. (DIS): Analysts feel the Mouse House has been punished enough. 
  • Eli Lilly (LLY): A new Alzheimer’s treatment could give the company yet another blockbuster medication. 
  • Read on for more stocks that analysts rate highly.
strong buy growth stocks - Wall Street Favorites: 7 Growth Stocks With Strong Buy Ratings for June 2024 

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Investors searching for stocks that will grow their portfolio and provide a strong return on capital should pay attention to analyst ratings, particularly the ones placed on strong buy growth stocks. Analysts are selective about the stocks they give their highest ratings to and are growing increasingly picky as the market rallies to all-time highs.

Not every stock is worthy of praise or a top rating. But some are, and analysts see their share prices continuing to rise even if they’ve already enjoyed big gains in this bull market. Analyst ratings can point investors towards quality stocks that will make for solid long-term investments and return big gains over many years.

Here are Wall Street favorites: seven strong buy growth stocks for June 2024.

Dell Technologies (DELL)

A Dell (DELL) office in Santa Clara, California.
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Investment bank Morgan Stanley has named Dell Technologies (NYSE:DELL) stock a “top pick.” Morgan Stanley analyst Erik Woodring is encouraging investors to take advantage of Dell stock’s decline after the company reported its financial results at the end of May. “We’d take advantage of recent post-earnings underperformance to ‘buy the dip’ on a leading AI infrastructure player,” wrote Woodring.

The analyst reiterated an “overweight” buy equivalent rating on Dell stock and placed a $155 price target on the shares, although he says the price could reach $200, which would be nearly 40% higher than where it currently trades. Morgan Stanley isn’t the only Wall Street firm that’s bullish on Dell. The consensus view among 13 professional analysts is that Dell stock is a “strong buy.”

Analysts like the company’s opportunity with artificial intelligence and anticipate a global refresh cycle to drive personal computer (PC) and laptop sales.

Alphabet (GOOG/GOOGL)

a Google Pixel smartphone
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The consensus view among 38 analysts who cover the progress of Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) is that the technology giant’s stock is a “strong buy.” Among the analysts, 33 rate it a “buy” and five have a “hold” rating on the stock. There isn’t a single “sell” rating on Alphabet currently. The analysts also see upside for the company’s share price, with a median target that is 13% higher than current levels.

The analyst community sees Alphabet benefitting from two catalysts. The first is the company’s leading position in AI, especially with its DeepMind laboratory. The second tailwind is the return of online advertising, which has come roaring back. Alphabet is seen as a prime beneficiary of online ads through its Google search portal, and it is how the company makes most of its revenue. Analysts also like that Google Cloud is profitable.

GOOGL stock has gained 43% over the last 12 months, including a 27% increase this year.

Riot Platforms (RIOT)

In this photo illustration, the Riot Platforms (RIOT) logo is displayed on a smartphone screen.
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Analysts are loving cryptocurrency miner Riot Platforms (NASDAQ:RIOT). Nine analysts collectively give RIOT stock a “strong buy” rating. The median price target on the company’s share is 70% higher than where it currently trades. The upside potential for the crypto miner appears huge, based on what Wall Street professionals say in their analysis.

Riot Platforms is viewed as a likely beneficiary of the consolidation now taking place among crypto mining companies after the Bitcoin (BTC-USD) halving event this April. The halving event reduced the available supply of Bitcoin and the rewards for mining it by 50%, leading to a wave of consolidation among miners. Riot Platforms has itself launched a hostile takeover bid for rival Bitfarms (NASDAQ:BITF).

RIOT stock has fallen 30% this year, with most of the decline coming after the Bitcoin halving. Analysts see the decline as a buying opportunity for investors.

Walt Disney Co. (DIS)

an image of mickey mouse on a yellow background to represent disney (DIS)
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Analysts seem to feel that Walt Disney Co.’s (NYSE:DIS) stock has been punished enough. While the share price of the entertainment company has risen 12% this year, it is 28% lower than where it was five years ago. Today, the stock is trading at half its price when it peaked at an all-time high in March 2021. Despite the struggles, 25 Wall Street analysts rate DIS stock a “strong buy” and see the stock rising nearly 30% over the coming 12 months.

Analysts seem heartened by Walt Disney’s cost controls and the more sustainable growth of the company’s streaming platform. At the same time, theatrically released movies are making a comeback. The analyst community also seems to like the focus that Disney is putting on its theme parks, with plans to invest $60 billion into the parks unit over the next decade.

Eli Lilly (LLY)

Eli Lilly and Company World Headquarters. Lilly makes Medicines and Pharmaceuticals XI
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Analysts expect pharmaceutical giant Eli Lilly (NYSE:LLY) to continue outperforming. The 19 analysts who rate LLY stock give it a consensus “strong buy,” with 16 analysts labeling it a “buy” and three calling it a “hold.” Analysts, of course, are bullish on the company’s weight loss and diabetes drugs, which they expect to drive its sales for several years.

However, analysts are also excited about Eli Lilly’s new Alzheimer’s medication, which just took a big step towards securing regulatory approval. A panel of independent advisors to the U.S. Food and Drug Administration (FDA) recommended the new Alzheimer’s drug, Donanemab, clearing the way for the medication to receive regulatory approval later this year. The FDA almost always follows recommendations from its advisory panels.

Analysts say Donanemab gives Eli Lilly another blockbuster medication to drive its sales and share price further higher. LLY stock has risen 97% in the past 12 months.

Broadcom (AVGO)

broadcom (AVGO) logo outside office building
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Broadcom (NASDAQ:AVGO) appears to be the stock of the moment after the microchip and semiconductor designer issued strong quarterly results, offered bullish forward guidance, and announced a 10-for-1 stock split. Analysts seem to love everything Broadcom is doing, rating the stock a “strong buy.” Although the stock has gained 67% year-to-date, the average price target on it is still 5% above current levels.

The increase in AVGO stock could accelerate going into the company’s stock split, scheduled for July 15. Analysts view Broadcom as a major beneficiary of the AI boom, with its high-demand microchips. At the same time, the company is also getting a revenue boost from VMware, the enterprise software company it acquired for $69 billion last year. The company and stock are firing on all cylinders.

Berkshire Hathaway (BRK-A/BRK-B)

The logo for Berkshire Hathaway displayed on a smartphone screen.
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It’s not often referred to as a growth stock, but analysts are extremely bullish on the more affordable Class B stock of Berkshire Hathaway (NYSE:BRK-A/NYSE:BRK-B). Analysts rate the stock as a “strong buy” and see the share price rise by an average of 15% over the next year. If anything, analysts seem to feel that Berkshire’s Class B stock is undervalued at current levels.

Berkshire’s stock hasn’t been a slouch. The share price is up 13% on the year, about matching the gain in the benchmark S&P 500 index. The stock doubled in the past five years. Analysts continue to like that Berkshire Hathaway is run by Warren Buffett, and also like the company’s diversified holdings, which include everything from railroads to insurers. Analysts also single out Berkshire’s fortress cash pile, which is expected to surpass $200 billion at the end of the current second quarter.

On the date of publication, Joel Baglole held long positions in GOOGL and LLY. 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-7-growth-stocks-with-strong-buy-ratings-for-june-2024/.

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