These three stocks present growth opportunities, according to top Wall Street analysts.

Macro uncertainty is already affecting investors, as Federal Reserve officials express concerns about inflation and its potential impact on the rate-cutting path, even though the new year has only just begun.

To optimize their portfolio returns amidst market instability, investors can consider adding stocks that have robust financials and promising long-term growth prospects. The investment strategies of top Wall Street analysts can guide investors in selecting the best stocks, as experts rely on a comprehensive comprehension of the macroeconomic climate and company-specific factors to inform their analysis.

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

Uber Technologies

Uber, a ride-sharing and food delivery platform, reported better-than-expected revenue and earnings for the third quarter of 2024, despite gross bookings falling short of expectations.

James Lee, an analyst at Mizuho, recently reaffirmed his buy rating on Uber Technologies stock with a price target of $90. According to Lee, 2025 will be a year of investment for Uber. Although these investments may negatively affect the company's earnings before interest, taxes, depreciation and amortization in the short term, they are expected to drive long-term growth.

According to Lee's analysis, Uber is projected to achieve a compound annual growth rate of 16% in core gross bookings from FY23 to FY26, which aligns with the company's analyst-day target of mid- to high-teens growth. Additionally, Lee believes that Uber's EBITDA growth is on track with its analyst-day target of high-30s to 40% CAGR. Despite the focus on growth investments, economies of scale and increased efficiency are expected to mitigate margin risks, as stated by Lee.

The analyst predicts that FY25 gross bookings growth (forex neutral) will be in the high-teens, with the rate of decline slowing down compared to the second half of 2024. Lee believes that concerns about the expansion of the company's Mobility business are exaggerated.

The analyst predicts that Uber's Delivery business will have mid-teens gross bookings in FY25 due to the increasing adoption of new verticals and maintaining the food delivery market share. Mizuho's checks show that order frequency has reached a new high, and solid grocery adoption has been observed in the U.S., Canada, and Mexico, along with robust user penetration.

Among more than 9,200 analysts tracked by TipRanks, Lee ranks No. 324. His ratings have been profitable 60% of the time, delivering an average return of 12.9%. Check out Uber Technologies Stock Charts on TipRanks.

Datadog

In November 2024, DDOG announced better-than-anticipated results for the third quarter of 2024.

On January 6th, Monness analyst Brian White maintained a buy rating on Datadog stock with a price target of $155. The analyst believes that the company takes a more balanced approach to the generative artificial intelligence trend, avoiding the exaggerated claims made by many in the software industry. Despite facing challenges in the software market in 2024, DDOG outperformed its peers. However, the analyst noted that it underperformed other stocks in Monness' coverage universe.

Datadog's generative AI progress is expected to drive incremental activity in the industry over the next 12 to 18 months, according to White. The analyst highlighted DDOG's outperformance compared to peers and its transparency regarding its AI progress. Additionally, AI-native customers accounted for more than 6% of DDOG's annual recurring revenue (ARR) in Q3 2024, up from over 4% in Q2 2024 and 2.5% in Q3 2023.

The analyst is optimistic about Datadog's future and believes that the company's cloud-native platform, strong growth, and favorable secular trends in the observability industry, along with its new AI-driven growth opportunities, warrant a premium valuation compared to traditional software vendors.

Among more than 9,200 analysts tracked by TipRanks, White ranks No. 33. His ratings have been profitable 69% of the time, delivering an average return of 20%. Check out the Datadog Ownership Structure on TipRanks.

Nvidia

This week, semiconductor giant (NVDA) is the third stock pick, as the company is a major beneficiary of the generative AI wave and is experiencing high demand for its advanced GPUs that are necessary for building and running AI models.

Despite supply chain challenges, Nvidia's CFO Colette Kress assured JPMorgan analyst Harlan Sur that the ramp-up in the production of the company's Blackwell platform is on track, leading the analyst to reaffirm a buy rating on the stock with a price target of $170.

The company anticipates continued spending in data center space in 2025, driven by the Blackwell expansion and strong demand. Additionally, Sur highlighted the potential for significant revenue growth as the company captures a larger share of the $1 trillion-plus datacenter infrastructure market.

Nvidia anticipates gaining from the transition to accelerated computing and increasing demand for AI solutions, as management believes the company has a strong competitive edge over ASIC solutions due to its ease of use and comprehensive system offerings.

Nvidia-based solutions will remain preferred by enterprise, vertical markets, and sovereign customers, as agreed upon by Sur.

Sur emphasized the launch of advanced gaming products and the potential to expand into new markets such as AI PCs.

Among more than 9,200 analysts tracked by TipRanks, Sur ranks No. 35. His ratings have been profitable 67% of the time, delivering an average return of 26.9%. Check out Nvidia Hedge Funds Activity on TipRanks.