Three stocks recommended by top Wall Street analysts for their promising future.

The stock market has reached new heights in the past four weeks due to macroeconomic uncertainty and potential policy changes under President-elect Donald Trump. However, investors can benefit by focusing on companies that can handle challenges and provide consistent returns in the long run.

Strong financials, reliable business models, and attractive product offerings are the criteria top Wall Street analysts use to select stocks of companies.

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

ServiceNow

The company's third-quarter results exceeded analysts' expectations due to AI-related advantages.

After a virtual fireside chat with ServiceNow's CFO Gina Mastantuono, Mizuho analyst Gregg Moskowitz maintained a buy rating on NOW stock and increased the price target from $980 to $1,070, reflecting the increase in comparative valuation multiples.

Management is confident in ServiceNow's near-term and medium-term outlook, with robust demand driving growth. The analyst highlighted the company's Pro Plus SKU offering, which is gaining momentum through generative AI.

Moskowitz emphasized the company's enthusiasm for the growth potential of its new Workflow Data Fabric product, which integrates business and technology data across an enterprise and will enable new workflows and AI agents. The company anticipates that this new product will double its total addressable market to $500 billion and generate additional revenue.

Moskowitz stated that NOW is well-positioned for high growth due to ongoing demand for workflow automation, strong cross-sell opportunities, and AI monetization.

TipRanks tracks more than 9,100 analysts, and Moskowitz ranks No. 221. His ratings have been profitable 61% of the time, with an average return of 14.6%. Check out the ServiceNow Insider Trading Activity on TipRanks.

Snowflake

On November 21, the stock price of (SNOW), a data analytics software provider, increased by almost 33% due to its impressive third-quarter results.

Derrick Wood, a TD Cowen analyst, maintained a buy rating on SNOW and raised his 12-month price target from $180 to $190 after being impressed by the company's Q3 performance. The analyst noted that the quarter was a turning point in Snowflake's growth story, with the company's performance being uniformly impressive.

The key drivers behind Q3 results were benefits from changes in Snowflake's go-to-market strategy, lower-than-expected storage headwinds, and early traction in Cortex AI services.

In addition to the analyst's commentary on Snowflake's strength in winning large deals, including three $50 million contracts in the third quarter, there was also positive feedback on the company's Q4 large deals pipeline.

Snowflake's core data warehousing consumption growth has become more stable, leading to increased optimism from Wood about the company's future prospects. This growth is evident in the net retention rate (NRR) trends and Snowflake's early success with new AI workloads, particularly Dynamic Tables.

Among more than 9,100 analysts tracked by TipRanks, Wood ranks No. 80. His ratings have been successful 66% of the time, delivering an average return of 18.1%. Check out SNOW Stock Charts on TipRanks.

Twilio

Twilio (TWLO), a cloud communications platform, was this week's third pick. The company's third-quarter results exceeded expectations and it raised its full-year revenue forecast. Twilio attributed its Q3 success to its financial prudence and innovative approach.

TWLO stock was upgraded to a buy by Monness analyst Brian White, with a price target of $135.

During the pandemic, Twilio's digital platform experienced strong demand, with its stock price reaching a record high in early 2021. However, following the reopening of the economy, the company's growth rate slowed to 4% in Q1 2024, down from a peak of 67% in Q2 2021, and it faced a bloated cost structure.

Twilio's revenue growth accelerated modestly in Q2 2024 and improved more visibly in Q3 2024, after eleven consecutive quarters of slower growth, according to White. The analyst also noted that Twilio's operating margin increased due to cost containment and efficiency measures, as well as divestitures.

Twilio's ability to combine communications with contextual data and AI is something White is confident in. He believes that the stock's valuation remains attractive as Twilio is on course to extend its recovery into 2025.

Among more than 9,100 analysts tracked by TipRanks, White ranks No. 44. His ratings have been profitable 69% of the time, delivering an average return of 20.4%. Check out Twilio's financial statements on TipRanks.