Optimism about artificial intelligence helped lift the S&P 500 index in 2024, boosting major semiconductor stocks and power plays in the utility sector.
Investors looking for sustainable returns should look for companies with solid long-term growth potential.
To this end, Wall Street’s top analysts are leveraging their expertise to help investors understand the key drivers that can support a company’s long-term growth and deliver lucrative returns. We will help you select such stocks.
According to TipRanks, a platform that ranks analysts based on past performance, the three stocks that the Street’s top pros like are:
fortinet
This week’s first pick is a cybersecurity company fortinet (FTNT). The company aims to become a leader in the secure access services edge field. Fortinet leverages machine learning and AI technology to deliver cybersecurity solutions.
TD Cowen analyst Shor Eyal recently reaffirmed his buy rating on Fortinet stock and raised his price target from $75 to $90. The analyst said channel checks and discussions with industry participants indicate continued recovery in FTNT’s business and healthy demand across the company’s extensive product portfolio.
In fact, Fortinet’s third-quarter revenue and billings are at the high end of the company’s outlook, suggesting slight upside potential, according to Channel Check. The analyst also expressed confidence in his forecast for 12% fourth-quarter revenue growth, given “healthy closure rates and further building of the pipeline for a seasonally strong fourth quarter.” I have it.
Eyal also noted that one of the key drivers supporting Fortinet’s continued recovery is the strong traction of its operational technology products, backed by long-term replacement cycles to replace traditional OT systems. did. The analyst added that FTNT also benefits from the adoption of AI-driven networks and the company’s expanded focus on cloud security, enhanced by its recent acquisition of Lacework.
Mr. Eyal is ranked #12 out of over 9,100 analysts tracked by TipRanks. His rating is profitable 71% of the time, with an average return of 27.3%. (See Fortinet Insider Trading Activity on TipRanks)
GitLab
move on to next GitLab (GTLB) is an AI-powered cloud-based software company that helps organizations increase developer productivity, improve operational efficiency, and reduce security and compliance risks.
After meeting with the company’s management, Mizuho analyst Greg Moskowitz reiterated his Buy rating on GitLab shares, with a price target of $62. The analyst noted that management has strong confidence in seizing additional opportunities in a total target market of $40 billion. Currently, two vendors, GitLab and Microsoft’s GitHub, together account for only about 5% of the market share in the software development lifecycle space.
Specifically, management expects momentum for GitLab’s Duo Pro product to accelerate in 2025, driven by a wave of generative AI. The analyst also highlighted the company’s optimism for its GitLab Dended service, which has shown better-than-expected customer interest and is delivering higher average revenue per unit.
Overall, Moskowitz said he is “positive regarding GTLB’s ability to perform and grow at a high level in the medium to long term, primarily due to multiple upside factors including seat capacity expansion, price increases, and upsell potential.” There is,” he said.
Moskowitz is ranked #321 out of over 9,100 analysts tracked by TipRanks. His rating is profitable 58% of the time, with an average return of 12.6%. (See GitLab’s hedge fund activity on TipRanks)
Nvidia
Finally, let’s take a look at the semiconductor giants. Nvidia (NVDA). The company has achieved impressive revenue growth rates, driven by strong demand for advanced graphics processing units (GPUs) for building artificial intelligence models and applications.
Following an investor meeting with Nvidia management, Goldman Sachs analyst Toshiya Zhang reiterated his buy rating on NVDA stock and raised his price target from $135 to $150.
Analysts’ optimism after the meeting was based on “a deeper understanding of the company’s competitive position and, importantly, the expected increase in inference workload complexity and its impact on future computing demand.” It reflects what was recognized.
Hari pointed to Nvidia’s confidence in the demand backdrop as data center operators continue to spend on accelerated computing and GPUs amid a wave of AI generation. Management also highlighted the outlook for the Blackwell platform. Analysts believe that Blackwell’s launch and expansion will not only be a driver of short- and medium-term revenue growth, but also a key factor in increasing NVIDIA’s competitive advantage.
Hari reflected on recent industry trends such as increased cloud spending, strong order trends for major AI server OEMs such as Dell and Hewlett Packard Enterprise, and improvements in chip-on-wafer-on-substrate. The company has raised its revenue forecast for fiscal years 2025-2027. Shipping outlook.
Mr. Hari is ranked #32 out of over 9,100 analysts tracked by TipRanks. His evaluations were successful 68% of the time and yielded an average return of 27.5%. (See Nvidia stock chart on TipRanks)
