The top Wall Street analysts have identified these as the top five stocks for long-term investment.

The top Wall Street analysts have identified these as the top five stocks for long-term investment.
The top Wall Street analysts have identified these as the top five stocks for long-term investment.

Last week, investors experienced a positive outcome as the major averages finished Friday with gains. However, volatility is expected to persist in the future.

Investors are considering the Federal Reserve's rate hike, inflation, and the conflict between Russia and Ukraine while navigating the stock market's daily fluctuations. To effectively manage the market's volatility, investors must adopt a long-term outlook.

According to TipRanks, Wall Street's top analysts have identified their top stock picks, which they believe have significant long-term potential.

Here are five names to look at this week.

Oracle

According to Brian White of Monness, Crespi, Hardt & Co., Oracle (ORCL) is becoming increasingly appealing to tech investors.

Recently, the technology conglomerate reported "impressive" earnings and "optimistic" future prospects, according to the analyst. Notably, ORCL's revenue growth is currently the strongest it has been since the company shifted its focus to cloud-based solutions.

He rated the stock a buy and set a price target of $126.

Oracle provides investors with a high-quality, value-driven opportunity to participate in the attractive cloud transformation market. The company's relationships with TikTok and its presence in the health-care sector remain sources of encouragement, while its SaaS business continues to experience strong momentum.

While White acknowledged that the current volatility affecting tech stocks may continue to affect share prices, it is unclear whether investors are enthusiastic about Oracle's proposed acquisition of Cerner for $28.3 billion.

Out of nearly 8,000 analysts, White is ranked No. 265 by TipRanks. He has a success rate of 60% and an average return of 25.2% from his stock picks.

Take-Two Interactive

After filing an S-4 form with the Securities and Exchange Commission regarding its acquisition of Zynga, Take Two Interactive (TTWO) experienced a decline in its shares. However, Andrew Uerkwitz of Jefferies Group believes that the resulting price action is excessive.

The analyst in a published report presented his bull case for Take-Two, emphasizing the stock's "unprecedented value" today. He also highlighted the expected increase in the video game publisher's net bookings, which he anticipates will continue to rise in FY24 and FY25.

Uerkwitz gave the stock a buy rating and set a price target of $231.

Despite the moderate direction given by management, these metrics have historically been reserved.

Take-Two has been enhancing its extensive content pipeline with substantial investments in research and development, as well as sales and marketing. According to Uerkwitz, the company boasts some of the highest quality content among U.S. publishers, and an "unprecedented wave of content" is predicted to hit the market. (See Take-Two Risk Analysis on TipRanks)

The analyst did not rule out a future positive rerating for the stock, provided its pipeline becomes more transparent.

Uerkwitz is ranked No. 152 among nearly 8,000 analysts in TipRanks’ database. He has a success rate of 61% when rating stocks and an average return of 27.7% on each one.

ServiceNow

As workers return to the office, speculation has begun that companies' IT spending will decrease. However, Wall Street predicts that secular tailwinds will continue to drive growth in the IT industry.

In his recent report on NOW's stock, Brian Schwartz of Oppenheimer & Co. pointed out that the "secular demand for modern cloud software, digitizing workflow, business continuity, and analytics" is consistent with NOW's business model.

Schwartz gave the stock a buy rating and set a price target of $660 per share.

The analyst acknowledged the uncertainty and subsequent volatility surrounding high-growth and tech names, and he highlighted the near-term investment risk. Nevertheless, Schwartz hypothesized that ServiceNow's industry peers are lagging behind the company in terms of customer satisfaction.

Although there are reports of a decrease in IT spending, Schwartz predicts a robust revival for ServiceNow in back-office transactions and demand. (Check out ServiceNow Stock Charts on TipRanks)

Out of nearly 8,000 analysts on TipRanks, the analyst ranks No. 19. His stock picks have been accurate 68% of the time, resulting in average returns of 48.5% each.

SentinelOne

With the ongoing conflict between Russia and Ukraine, there is a growing expectation of increased cyberattacks against the West, prompting a heightened focus on cybersecurity and boosting the visibility of companies such as SentinelOne (S).

SentinelOne has been the fastest-growing company in the market, according to Alex Henderson of Needham & Co. Recently, the analyst stated that SentinelOne's "purpose-built platforms designed to tackle this market" have a significant advantage and will likely drive market share gains.

Henderson downgraded the stock's price target from $82 to $50, despite rating it as a buy.

Although the projection was reduced, Henderson remained optimistic about the company's future. He stated that the cybersecurity firm recently reported strong quarterly earnings, excelling in areas such as customer growth and revenue.

Henderson emphasized the firm's technology in a competitive market, despite its operating margins being tighter than desired.

SentinelOne's management did not mention its recent acquisition of identity detection software company Attivo in its guidance. The merger's benefits to SentinelOne will only be revealed in the next quarter's report.

Henderson, with a success rate of 60% and an average return of 31% on his stock picks, ranks 110th among the nearly 8,000 expert analysts.

Caterpillar

The conflict between Russia and Ukraine has led to an increase in commodity prices, particularly due to Russia's significance as a mining exporter. As a result, companies involved in extraction outside of Russia, such as Caterpillar (CAT), have seen their stocks rise.

The world's largest mining equipment, engine, and turbine producer is set to benefit from increased spending in the sector. Stephen Volkmann of Jefferies Group stated that Russia's return to global markets is unlikely, and its operations cannot be relied upon.

Volkmann upgraded the stock to a buy and set a price target of $260.

Historically, the prominent company has been used by investors as an inflationary hedge, and in a world of rising costs, Volkmann expects a decade of reinvestment in its machinery.

The war in Eastern Europe has a significant impact on global commodity markets, resulting in higher pricing and supply diversification in both mining and oil & gas sectors, according to the analyst.

Caterpillar operates in the commercial construction industry, which is vulnerable to stagflation, but Volkmann believes that any potential losses will only slightly affect the company's valuation. (See Caterpillar Dividend Data on TipRanks)

On TipRanks, Volkmann is ranked No. 231 among almost 8,000 analysts. He has a 67% accuracy rate when selecting stocks and has an average return of 23.5% per investment.

by Brock Ladenheim, Tipranks.com

investing