These 3 stocks have earned the confidence of top Wall Street analysts following their earnings reports.

These 3 stocks have earned the confidence of top Wall Street analysts following their earnings reports.
These 3 stocks have earned the confidence of top Wall Street analysts following their earnings reports.

To make the best investment choices amidst macro uncertainties and the Federal Reserve's uncertain rate cuts, investors must adopt a long-term perspective.

To make informed investment decisions, investors can rely on the evaluations of Wall Street experts, who meticulously analyze a company's financial performance and growth strategies before assigning their ratings.

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

Domino's Pizza

This week's top choice is restaurant chain (DPZ). The company has announced a beat on earnings per share for the first quarter, thanks to increased U.S. franchise royalties and fees, as well as enhanced gross margin within the supply chain.

Lauren Silberman, a Deutsche Bank analyst, maintained a buy rating on DPZ stock and raised the price target from $555 to $580, stating improved visibility regarding the same-store sales growth outlook.

U.S. same-store sales growth of 5.6% was attributed by Silberman to broad-based momentum, with improved traffic experienced in carryout and delivery. She stated that the traffic growth was driven by Domino's revamped loyalty program, strong value proposition, operations and innovation.

The analyst observed that DPZ is experiencing growth due to increased contributions from Uber Eats, resulting from marketing efforts and awareness. The Q1 results supported Silberman's positive outlook on DPZ, as the company implemented initiatives to boost same-store sales, accelerate unit growth, and improve franchisee profitability and margins.

"Given the improving fundamental story, we believe a premium valuation is warranted and DPZ offers a favorable risk/reward," she stated.

Silberman ranks 446th among more than 8,800 analysts on TipRanks, with a profitable rating 69% of the time and an average return of 13.9% per rating. (See Domino's Technical Analysis on TipRanks)

Shake Shack

Despite reporting mixed first-quarter results earlier this month, investors were pleased with SHAK's commentary about improving business trends.

SHAK stock's buy rating was reiterated by BTIG analyst Peter Saleh during an investor meeting with the company's management, and the price target was increased from $120 to $125 based on the key takeaways from the meeting.

Saleh stated that the combination of technology (kiosks), enhanced operating model (less labor), and greater marketing is proving to be a highly effective and profitable one.

The analyst believes that the company's strategic initiatives will boost same-store sales growth and increase restaurant profit margins in the near and long term.

Kiosk orders are experiencing a high-teens growth rate compared to traditional in-store orders, according to Saleh. The analyst predicts that the kiosks will bring more sales benefits in the future, along with labor savings and increased efficiency.

Among more than 8,800 analysts tracked by TipRanks, Saleh ranks No. 353. His ratings have been successful 61% of the time, with each delivering an average return of 12.1%. (See Shake Shack's Ownership Structure on TipRanks)

Apple

Despite a decline in revenue, tech giant AAPL reported better-than-expected fiscal second-quarter results due to tough comparisons with the prior-year quarter.

The company's announcement of an expanded buyback program and the positive reaction from investors led to a favorable outcome. Apple's board approved an additional $100 billion in share repurchases.

William Power, a Baird analyst, reaffirmed a buy rating on Apple stock with a price target of $200 after analyzing the company's fiscal Q2 results. He noted that Apple surpassed his revenue, earnings per share, and gross margin estimates.

Apple's Services revenue grew 14.2% year over year, marking an acceleration from the 11.3% growth experienced in the fiscal first quarter. Additionally, Apple's performance in China was better than feared, with Greater China revenue declining 8.1%, reflecting an improvement from the 12.9% drop seen in the previous quarter.

The analyst believes that the company's AI update at its June developer conference could boost the stock. Power stated that his price target for AAPL stock reflects a premium valuation compared to the peer group, due to strong execution, growing services contribution, continued eco-system benefits, and strong free cash flow.

Among more than 8,800 analysts tracked by TipRanks, Power ranks No. 245. His ratings have been profitable 56% of the time, with each delivering an average return of 16.1%. (See Apple Stock Buybacks on TipRanks)

by TipRanks.com Staff

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