Three stocks chosen by top Wall Street analysts for promising returns.

In the first quarter of 2024, the U.S. stock market experienced a robust growth. However, investors are uncertain about the future due to the upcoming interest rate cuts and the upcoming U.S. elections.

Analysts on Wall Street are disregarding temporary fluctuations and concentrating on firms with robust foundations and promising long-term profits.

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

Micron Technology

This week's initial stock selection is memory chip manufacturer (MU), which demonstrated impressive quarterly results. Additionally, the company provided strong guidance due to the surge in demand resulting from the artificial intelligence industry.

MU stock's buy rating was reiterated by Needham analyst Quinn Bolton, who also raised the price target from $100 to $120. The analyst emphasized that the company's HBM trends are significantly driving revenue estimates.

In the fiscal second quarter, Micron's HBM3E memory solution generated revenue and has already sold out for calendar year 2024, as noted by Bolton.

The analyst expects Micron to generate several hundred million dollars of revenue from HBM3E in fiscal 2024 and drive fiscal 2025 revenue to record highs. Furthermore, management's commentary about increasing gross margins through fiscal 2024 and into fiscal 2025, driven by favorable pricing and product mix, was highlighted.

According to Bolton, the company will benefit from the expected rebound in the memory cycle in 2024, as he stated, "In the long term, we see MU as a significant beneficiary of strong demand for data centers (AI/ML), automotive semi-content, graphics, and industrial automation."

Among more than 8,700 analysts tracked by TipRanks, Bolton ranks No. 17. His ratings have been profitable 66% of the time, with each delivering an average return of 30.7%. (See Micron Technical Analysis on TipRanks)

Lululemon

LULU, an athletic apparel maker, reported better-than-expected results for the fourth quarter of fiscal 2023. However, shares fell as investors were disappointed with the company's guidance, which reflected soft sales in the U.S. due to the impact of macro pressures on consumer spending.

Guggenheim analyst Robert Drbul adjusted his fiscal 2024 earnings per share estimates and reduced the price target for LULU stock, while maintaining a buy rating on the stock.

Although the first quarter in the U.S. saw a slower start for LULU, management remains optimistic about expanding its domestic business and capturing more market share this year.

The analyst emphasized the sustained growth in Lululemon's international business during the fourth quarter. He is confident that Lululemon will achieve its objective of quadrupling its international revenue by the end of fiscal year 2026 compared to fiscal year 2021 levels. This growth is expected to lead to higher overall revenue and operating margins, justifying the stock's premium valuation.

Drbul stated that we maintain a BUY rating because we anticipate that LULU will benefit from positive secular trends (health, wellness, casualization, and fitness, including at-home).

Among more than 8,700 analysts tracked by TipRanks, Drbul ranks No. 574. His ratings have been successful 58% of the time, with each delivering an average return of 8%. (See Lululemon Stock Buybacks on TipRanks)

Broadcom

Another tech giant, semiconductor company AVGO, is expected to benefit from the generative AI wave. During a recent investor meeting, the company shared its innovations aimed at achieving its goal of $10 billion in AI chip sales by 2024.

After the event, Susquehanna analyst Christopher Rolland maintained a buy rating on AVGO stock with a price target of $1,650. The analyst emphasized that the company is well-positioned to achieve its annual AI sales target due to its robust portfolio of AI accelerators and networking products.

Despite industry predictions that InfiniBand would be the market leader, Broadcom's management remains confident in Ethernet's ability to compete in AI applications.

Rolland emphasized how Broadcom's customized chips improve cost efficiency in consumer AI applications. The company collaborates with customers to design the architecture of their AI accelerators, resulting in enhanced performance and hardware optimization.

Rolland stated that Broadcom's strategic acquisitions, such as Symantec and VMware, demonstrate its expertise as a top integrator in the industry, with economies of scale continuing to drive earnings power for those who can execute effectively in the semiconductor sector.

Rolland ranks 15th among more than 8,700 analysts on TipRanks, with a profitable rating 69% of the time and an average return of 25.7% per rating. (Check out the Broadcom Stock Charts on TipRanks)