These stocks have the potential to perform well in the long term, according to top Wall Street analysts.

Macro uncertainty, a surge in energy prices, and the sudden crisis in the Middle East are presenting challenges to investors.

Analysts can provide direction to investors by identifying companies with promising long-term prospects and the ability to handle short-term challenges.

According to TipRanks, Wall Street's top analysts have favored these five stocks.

Amazon

This week, we start with Amazon, the e-commerce and cloud computing giant, whose stock has outperformed the broader market but has fallen from its September highs.

JPMorgan analyst Doug Anmuth pointed out the recent sell-off in AMZN stock and highlighted concerns among investors. These concerns include the state of the U.S. consumer and retail market, rising competition, higher fuel costs, and the Federal Trade Commission's lawsuit. Additionally, Amazon Web Services' growth is a concern for investors, as multiple third-party data sources indicate a slowdown in September.

Anmuth stated that Amazon is still his top investment idea, and the recent pullback presents a great opportunity to purchase shares. The analyst is particularly optimistic about AWS due to several factors, including moderating spending optimizations by clients, new workload deployments, and easing year-over-year comparisons in the back half of the third and fourth quarters. Additionally, Anmuth expects AWS to benefit from generative artificial intelligence.

Anmuth stated that the challenging retail backdrop supports AMZN's growth through initiatives such as same-day/1-day delivery (SD1D), increased Prime member spending, and strong third-party (3P) selection.

While TikTok, Temu, and Shein are expanding their global presence, they pose a competitive threat to Amazon primarily at the low end, with the company focusing on a wide range of consumers.

Anmuth maintained a buy rating on AMZN shares with a price target of $180. He ranks 84th among over 8,500 analysts monitored by TipRanks. His ratings have been profitable 61% of the time, with each delivering an average return of 16.6%. (Check out Amazon's Stock Charts on TipRanks)

Meta Platforms

Although Anmuth maintained a buy rating on META, he reduced his price target from $425 to $400 after revising his model to account for higher expenses and adjusting revenue and earnings growth estimates for 2024 and 2025 due to forex headwinds.

The analyst pointed out that Meta is focusing on the substantial growth opportunities in AI and metaverse while maintaining its discipline. (Check out META Insider Trading Activity on TipRanks)

Meta's new large language model, Llama 2, is expected to drive AI experiences across the Family of Apps and devices, while Quest 3 is the most powerful headset Meta has ever shipped, according to Anmuth.

Meta's advertising business is expected to continue outperforming, with AI investments yielding results and Reels predicted to become revenue-generating. Despite this, Anmuth remains confident in Meta's valuation, with the stock trading at 15 times his revised 2025 GAAP EPS estimate of $20.29.

Intel

The Programmable Systems Business (PSG) of semiconductor stock (INTC) has been decided to be operated as a standalone business, with the aim of preparing it for an initial public offering within the next two to three years.

Quinn Bolton, a Needham analyst, believes that a standalone PSG business would have several advantages, such as autonomy and flexibility, which would increase its growth rate. Additionally, operating PSG as a separate business would allow the unit to more aggressively expand into the mid-range and low-end field programmable gate arrays segments with its Agilex 5 and Agilex 3 offerings.

Intel's acquisition of Altera is expected to drive a renewed focus on the aerospace and defense sectors, as well as industrial and automotive sectors, which carry high margins and have long product lifecycles, thereby enhancing shareholder value and monetizing non-core assets, according to Bolton.

The analyst stated that the separation of PSG will enable management to concentrate on its core IDM 2.0 strategy and maintained a buy rating on the stock with a price target of $40.

On TipRanks, Bolton is ranked No.1 among over 8,500 analysts. His ratings have been successful 69% of the time, with each rating delivering an average return of 38.3%. (Check out the Intel Hedge Fund Trading Activity on TipRanks).

Micron Technology

Another semiconductor stock in this week’s list is (MU). Despite a 40% decline in revenue year over year, the company recently reported better-than-feared fiscal fourth-quarter results. However, its quarterly loss estimate for the first quarter of fiscal 2024 was wider than anticipated, although its revenue outlook exceeded expectations.

Deutsche Bank analyst Sidney Ho, ranked 66th among over 8,500 analysts on TipRanks, maintained a buy rating on MU stock with a price target of $85.

The analyst noted that the company's fiscal fourth quarter revenue surpassed his predictions due to the unexpected strength in NAND shipments, which was a result of strategic purchases. This helped to offset a slightly lower average selling price.

Although pricing trends suggest an upward trajectory, Micron's management believes that the company's overall gross margin will not turn positive until the second half of fiscal 2024. However, the analyst considers management's gross margin outlook to be conservative.

The analyst anticipates an increase in gross margin estimates due to the cyclical upturn in the industry.

On average, Ho's ratings have been profitable 63% of the time, with each delivering a return of 21.5%, according to Micron Blogger Opinions & Sentiment on TipRanks.

Costco Wholesale

Despite macro pressures affecting the purchase of big-ticket items, COST reported strong fiscal fourth-quarter earnings as a membership warehouse chain.

Peter Benedict, a Baird analyst, stated that the earnings surpassed expectations due to below-the-line factors, such as higher interest income, which more than compensated for the increased tax rate.

Benedict stated that COST's strong positioning in a slowing consumer spending environment is due to consistent growth in traffic and an active member base.

The analyst emphasized other positive aspects of the report, such as the increase in digital traffic resulting from the company's omnichannel efforts and the positive feedback regarding early holiday shopping.

The analyst believes that the chances of increasing the membership fee and/or receiving a special dividend are growing. He stated that the company's strong financial position allows for flexibility in capital deployment, including the possibility of another special dividend.

Benedict believes that COST stock should have a premium valuation of approximately 35 times the next 12 months' EPS, given its defensive growth profile. The analyst maintained a buy rating on the stock and a price target of $600.

Benedict is ranked No. 123 among over 8,500 analysts on TipRanks, and 65% of his ratings have been profitable, with each generating an average return of 12.2%. (See COST’s Technical Analysis on TipRanks)