Top Wall Street analysts predict growth potential for these stocks in the new year.

The Federal Reserve's prediction of three rate cuts in 2024 has improved investor confidence, but macroeconomic uncertainty can affect investment choices.

Analysts on Wall Street can examine the specifics to determine which stocks are most robust as the new year approaches.

According to TipRanks, Wall Street's top pros have three preferred names, as ranked by their past performance.

Uber Technologies

The stock price of Uber has increased this year due to investors recognizing the company's enhanced profitability and its addition to the S&P 500 index.

JPMorgan analyst Doug Anmuth has named Uber one of his top picks for 2024 and has reaffirmed a buy rating while raising the price target to $76 from $62. Anmuth emphasized that Uber holds a dominant position in two rapidly expanding markets: ridesharing and food delivery.

The analyst anticipates that the company will overcome the current macroeconomic difficulties and become more robust due to its dominant position in the ridesharing market and the increasing adoption of food delivery. Additionally, the analyst is confident in Uber's ability to expand into other areas with significant total addressable markets, such as grocery, convenience, and alcohol delivery.

Anmuth anticipates substantial earnings before interest, taxes, depreciation, and amortization, as well as free cash flow generation, due to increased margins on gross bookings of over 10% for the mobility business and more than 5% for the delivery business.

Anmuth stated that supply tailwinds should continue to support efficiency gains, and this can be further aided by advertising, product improvements, defect leverage, and tighter headcount.

Anmuth ranks 100th among over 8,600 analysts on TipRanks, with a successful rating rate of 61% and an average return of 17.5% per rating. (Check out Uber Hedge Funds Trading Activity on TipRanks).

CyberArk

The cybersecurity company, CYBR, focuses on identity security. In the previous quarter, the company reported better-than-expected results, with ARR increasing by 38% to $705 million.

Gregg Moskowitz, an analyst at Mizuho, selected CyberArk, Microsoft, and Adobe as his top picks in the software industry for 2024. Moskowitz anticipates that these companies will benefit from emerging trends such as digital transformation, generative artificial intelligence, next-gen security, contact center cloud migrations, and more.

Despite a challenging macro backdrop, CyberArk has consistently executed well, impressing the analyst. The analyst believes that CyberArk's successful shift to a recurring revenue model will drive even stronger financials in the future.

Moskowitz stated that CYBR is the primary beneficiary of a heightened threat landscape that has amplified the need for privileged access, and identity and secrets management.

Moskowitz increased his price target for CyberArk from $195 to $250 and maintained a buy rating, in line with his optimistic outlook on the company's growth prospects.

Among more than 8,600 analysts tracked by TipRanks, Moskowitz ranks No. 95. His ratings have been profitable 63% of the time, with each delivering an average return of 16.9%. (See CyberArk Financial Statements on TipRanks)

Costco Wholesale

The warehouse chain (COST) reported better-than-expected earnings for the fiscal first quarter, with customers still seeking value deals on groceries and essentials. Additionally, the company noted improvements in non-food categories.

While Costco's earnings per share surpassed Wall Street's consensus estimate, Peter Benedict, a Baird analyst, pointed out that it fell short of his expectations due to lower interest and other income and a higher tax rate.

The analyst pointed out that the KPIs for member engagement remain strong, with a 7.6% increase in paid membership. Management stated that a membership fee increase is inevitable, but the timing of it is still uncertain.

Benedict highlighted the growth of the company's core e-commerce business from a decline of 0.6% to 6.1% due to omni-channel initiatives that have increased digital engagement. The analyst also noted that Costco's strong financial position allows it to fund its upcoming $1 billion debt maturity with cash, even after paying a special dividend of $15 per share.

Benedict reiterated a buy rating on COST stock with a higher price target of $675, up from $600, when combined with encouraging commentary around holiday sales trends.

Benedict ranks 84th out of over 8,600 analysts on TipRanks, with a successful rating rate of 68% and an average return of 13.9% per rating. (Check out the Costco Technical Analysis on TipRanks)