These stocks, according to top Wall Street analysts, have the greatest potential for long-term growth.

These stocks, according to top Wall Street analysts, have the greatest potential for long-term growth.
These stocks, according to top Wall Street analysts, have the greatest potential for long-term growth.

With the ongoing pandemic, investors must adjust to shifting economic conditions and tendencies.

The current spike in coronavirus cases, the Federal Reserve's decision to reduce monetary support, and rising inflation are all impacting the daily stock market.

Wall Street analysts have identified these five stocks as having staying power, according to TipRanks, a financial data aggregation website.

Take-Two Interactive

On January 10, Take-Two Interactive Software (TTWO) announced the acquisition of FarmVille creator Zynga for $12.7 billion. This news caused a stir in the stock markets, with Zynga finishing the day up 40% and Take-Two slumping more than 13%. Despite the mixed reactions of investors, one of Wall Street's top analysts has maintained a bullish stance on the deal. (Check out Take-Two Interactive Earnings Data on TipRanks)

Andrew Uerkwitz of Jefferies, an analyst, believes that the sell-off of Take-Two shares was due to misjudgments about Zynga's compatibility with the company and concerns about a potential bidding war for the game developer. Despite this, Uerkwitz stated that there is no clear understanding of the merger's financial implications.

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

The recent weakness in 's share price presents a favorable opportunity for long-term investors to enter the market.

Uerkwitz believes that Take-Two's core business is strong due to its robust pipeline and the growing opportunities for mobile gaming, which are being driven in part by more advanced hardware. With the rapid advancements in data speeds, screen refresh rates, battery life, and chip speeds, more complex gaming systems can be developed for phones.

Those who play games are now more adept at using phone platforms than ever before.

Uerkwitz is ranked No. 189 on TipRanks among more than 7,000 financial analysts. He has a 63% success rate when selecting stocks and has generated an average return of 31.8% on his ratings.

Dick’s Sporting Goods

Global supply-side constraints may significantly impact consumer cyclicals, but companies that effectively manage their inventory and optimize their supply chain could experience significant upside once these constraints ease. One such company is Dick's Sporting Goods (DKS), which has demonstrated strong inventory management and supply chain optimization. (See Dick's Sporting Goods Insider Trading Activity on TipRanks)

Williams Trading's Sam Poser published a report on the stock, stating that DKS has been experiencing increased consumer engagement and has prioritized maintaining strong vendor relationships with companies such as Nike (NKE).

Poser gave the stock a Buy rating and set a price target of $180.

In addition to investing in its people, Dick's Sporting Goods has implemented vertically integrated initiatives such as curbside pick-up, which have increased operating margins and provided more convenience to customers.

DKS's sales are performing well, thanks to the company's strategic use of customer data, and it is on track to exceed its earnings guidance in the fourth quarter, according to Poser.

Poser, with a rating accuracy of 54% and an average return of 46.2%, currently ranks 145th among the over 7,000 analysts evaluated by TipRanks.

Cisco

The move towards digitalization is benefiting companies such as Cisco Systems (CSCO).

Ivan Feinseth of Tigress Financial Partners stated that Cisco is set to maintain its position as a leading global provider of IP-based connectivity and networking equipment, thanks to an increase in enterprise spending on networking infrastructure. (See Cisco Risk Factors on TipRanks)

Feinseth gave the stock a Buy rating and set a price target of $73.

Cisco completed its acquisition of cloud-analysis platform Epsagon last fall, as part of its ongoing commitment to inorganic growth and the strength of its balance sheet, according to Feinseth.

With the rise of videoconferencing and the need for faster networking speeds and capacity, Cisco has the potential to benefit. If the company is successful, its shareholders will also benefit. Cisco has increased its dividend for 10 consecutive years and is expected to do so again in February.

Feinseth ranks No. 89 among over 7,000 analysts on TipRanks, with a 68% success rate when rating stocks and an average return of 18.1% per stock.

Microsoft

Not all tech companies are as well positioned to grow in 2022 as Microsoft (MSFT) in the cloud-computing solutions game. MSFT has been making strides in regard to the amount of large deals for its Azure cloud services and Office 365 bundle.

Microsoft's strong performance was highlighted in a bullish report by Dan Ives of Wedbush Securities, who was impressed by the company's robust enterprise spending on Azure cloud. He predicted that Microsoft will soon experience significant growth. (See Microsoft Hedge Fund Activity on TipRanks)

Ives gave the stock a Buy rating and set a price target of $375.

The technology analyst stated that Microsoft's outlook has been underestimated by others due to their conservative perspectives. He pointed out that Wall Street has not yet considered the impact of remote work trends on Microsoft's future prospects. Additionally, Ives believes that the significant increase in enterprise-level deals, over 50%, justifies his projection of higher earnings than his peers have predicted.

Microsoft is expected to gain market share from established players like AWS, with the total addressable market on remote cloud services worth up to $1 trillion. Ives also believes that the recent price hike on Office 365 was a strategic move worth $5 billion. He predicts that Microsoft will reach a $3 trillion market cap over the next 12 months.

Ives is ranked 81st among over 7,000 professionals on TipRanks. He has achieved success 70% of the time, and his average ratings have resulted in returns of 44.6%.

Zscaler

Alex Henderson of Needham & Co views ZS, a cloud-based enterprise and network security company, as a distinctive investment opportunity with significant long-term value potential.

The company has been enhancing its sales capabilities and boosting customer conversion rates, as stated by him.

The stock was given a Buy rating by the analyst with a price target of $418.

Zscaler is in a favorable position, with sales, operating margin metrics, and expected free cash flow in the long run. Henderson is not worried about the current market sentiment towards growth stocks and believes that Zscaler can outperform the market even with rising interest rates.

The analyst pointed out that the C-Suite, CIO, and CTO levels at ZS are recognizing the need to shift from legacy perimeter defense and Client Server architecture to a Cloud Direct Zero Trust design. Zscaler is well-positioned to deliver this capability.

Henderson expects to surpass Wall Street consensus estimates on average-revenue-per-user growth by 5% to 10% as he looks forward to future earnings results.

Henderson has a successful track record as a financial analyst, with stock ratings that have been successful 72% of the time and have averaged returns of 42.3% each time.

by Brock Ladenheim, Tipranks.com

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