These 3 stocks are highly recommended by top Wall Street analysts for long-term prospects.

The market's direction is being influenced by the earnings season, with results from tech giants and sector leaders shaping the trend.

It is crucial for investors to remember that their investment decisions should not solely rely on a single quarter's performance updates, despite providing valuable information about a company's performance.

Instead of relying solely on their own analysis, they should take into account the recommendations of top Wall Street analysts, who conduct thorough evaluations of a company's financials to identify stocks with strong long-term growth prospects.

According to TipRanks, which ranks analysts based on their past performance, the Street's top pros favor these three stocks.

Alphabet

Google parent (GOOGL) is the first stock pick for this week. Although the company's Search and Cloud businesses showed strength in the second quarter, its YouTube advertising revenue growth slowed down and fell short of analysts' expectations.

BMO Capital analyst Brian Pitz maintained a buy rating on GOOGL stock with a price target of $222, keeping it as a top pick.

Alphabet's Search business is experiencing artificial intelligence-related tail winds, according to Pitz. He stated that the increase in query volume and decrease in incremental costs suggest that the benefits of AI to Search will be a multi-year event.

Pitz announced that the company's AI infrastructure and generative AI solutions for cloud clients have been adopted by over 2 million developers and are already contributing "billions" in revenue, leading him to raise his 2024 and 2025 estimates for the Cloud business to reflect AI-led gains.

Although YouTube missed its Q2 revenue targets, Pitz remains optimistic about the business. He believes that YouTube is well-positioned to benefit from the predicted shift of $150 billion in global linear TV ad dollars to the digital world. Additionally, he expects YouTube's advanced AI Creator tools to enhance its prospects.

Pitz is ranked No. 189 among over 8,900 analysts on TipRanks, with a successful rating rate of 74% and an average return of 17.1% per rating. (Check out the Alphabet Hedge Fund Trading Activity on TipRanks)

ServiceNow

Next up is ServiceNow, a cloud-based software company that recently impressed investors with its strong results for the second quarter. The workflow automation platform witnessed better-than-expected net new annual contract value, or NNACV, and generative AI contributions. ServiceNow also raised its 2024 subscription revenue outlook.

Goldman Sachs analyst Kash Rangan raised the price target for NOW stock to $940 from $910 and maintained a buy rating following the strong results and guidance.

The day after ServiceNow's quarterly report, shares surged 13%. An analyst stated that the post-results rally in NOW stock was a reflection of investors' renewed confidence in ServiceNow's go-to-market execution and the quality and breadth of its platform, which is resonating with IT buyers despite choppier macro conditions.

The 22.5% growth at constant currency in ServiceNow's current remaining performance obligation is due to strong NNACV and early renewals, as highlighted by Rangan.

The analyst believes that NOW's platform is adaptable across the enterprise due to the acceleration in meeting the remaining performance obligation to 31% in Q2 2024. Additionally, the analyst is optimistic about the company's ability to sustain a growth rate of more than 20%, driven by continued AI momentum and an accelerating backlog.

Among more than 8,900 analysts tracked by TipRanks, Rangan ranks No. 579. His ratings have been profitable 57% of the time, with each delivering an average return of 8.7%. (See ServiceNow Stock Charts on TipRanks)

Travel + Leisure

This week's third stock is (TNL), a membership and leisure travel company. Although TNL exceeded analysts' earnings expectations for the second quarter, it lagged revenue estimates. In response to strong consumer demand for vacation ownership or timeshares, the company raised its full-year adjusted earnings before interest, taxes, depreciation and amortization guidance.

On July 29, Ivan Feinseth, a Tigress Financial analyst, maintained a buy rating on TNL stock and increased his price target from $54 to $58. Feinseth's optimistic outlook is supported by the growing demand for vacation ownership. Additionally, he anticipates TNL benefiting from lower interest rates in the second half of this year and further rate cuts in 2025.

TNL's revenue and cash flows will be driven by a combination of property development, membership sales, and increases in subscription and resort operating fees due to strong travel trends.

Feinseth believes that TNL's strategic partnership with Sports Illustrated Resorts and the launch of the Ultimate Sports-Themed and Active Lifestyle Resort Network will be significant growth catalysts. Additionally, he anticipates the company will benefit from technology investments, marketing partnerships, and acquisitions, such as the purchase of Accor Vacation Club.

Feinseth is ranked No. 235 among over 8,900 analysts on TipRanks, with a successful rating rate of 60% and an average return of 12.8% per rating. (Check out the Travel + Leisure Stock Buybacks on TipRanks)