Wall Street analysts suggest these stocks for a long-term investment.

Wall Street analysts suggest these stocks for a long-term investment.
Wall Street analysts suggest these stocks for a long-term investment.

It can be challenging to identify the top investments for the long term, despite investors being on track for a successful November.

The three major averages are showing significant monthly growth, and Wall Street experts can analyze the specifics to identify promising long-term stock prospects.

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

Domino’s Pizza

This week, restaurant chain DPZ is ranked first. After discussing various aspects of the company with its management, such as sales initiatives, loyalty program, and aggregator strategy, BTIG analyst Peter Saleh maintained a buy rating on the stock with a "top pick" designation and a price target of $465.

The analyst anticipates that the revised Domino's rewards program will increase traffic among infrequent carryout customers, while third-party aggregators are targeting high-income consumers who prioritize convenience. Specifically, management believes that the reduction of the spend threshold from $10 to $5, along with lower redemption tiers, will encourage higher transactions from lower-frequency members.

According to Saleh, discussions with management indicate that the partnership with Uber Eats, which represents Domino's entry into third-party delivery services, is predicted to increase sales and profits for franchisees.

Saleh stated that these initiatives are expected to significantly increase both sales and earnings in the near and long term, helping Domino's regain its previous momentum.

On TipRanks, Saleh ranks 504th among over 8,600 analysts. His ratings have been successful 58% of the time, with each one delivering an average return of 9.1%. (Check out Domino’s Options Activity on TipRanks)

Palo Alto Networks

Gray Powell, another BTIG analyst, is optimistic about cybersecurity company PANW. Despite delivering better-than-expected fiscal first-quarter results, investors expressed concerns about the company's billings outlook.

Although Powell pointed out that the company fell short of its quarterly billings forecast and provided weak billings projections, he emphasized management's positive remarks regarding a robust demand environment and improved pipeline visibility.

The analyst argued that billings were weak, but the current remaining performance obligation showed strength. Additionally, there were several positive aspects, such as the solid growth in next-generation security annual recurring revenue, the increase in full-year operating margin, and the earnings per share guidance.

Powell, ranked 904th out of over 8,600 analysts on TipRanks, stated that the FQ1 performance shows that several factors can help PANW mitigate the slowing growth in the firewall appliance market.

Palo Alto Hedge Fund Trading Activity on TipRanks shows that Powell's ratings have been successful 53% of the time, with each delivering an average return of 7.2%.

Monday.com

We move to the work management platform Monday.com (MNDY), which recently impressed investors with better-than-anticipated third-quarter results and raised its full-year guidance.

Goldman Sachs analyst Kash Rangan increased his price target for MNDY stock to $270 from $250 and maintained a buy rating. The analyst highlighted the positive revenue and significant margin growth, with the company's operating margin of 13% surpassing the consensus estimate of 3%.

Rangan stated that the strong execution of management, along with a consistent beat-and-raise cadence, supports the viewpoint presented in the preview that despite macro pressures affecting expectations, there is little disruption to near-term performance.

The analyst believes that management's tone is becoming increasingly constructive due to the improvement in top-of-funnel activity, stability in the net expansion rate of the company's larger cohorts, and the growing demand for new offerings.

Rangan emphasized that the company is increasing its sales capabilities and upgrading its infrastructure to boost efficiency, which will aid in converting leads, retaining customers, and securing larger contracts.

Among more than 8,600 analysts tracked by TipRanks, Rangan ranks No. 440. His ratings have been profitable 59% of the time, with each delivering an average return of 8.2%. (See Monday.com Technical Analysis on TipRanks)

Alphabet

Despite generating 22% growth, Google Cloud failed to meet revenue expectations in the third quarter, while Google's parent company, GOOGL, reported upbeat results.

Ivan Feinseth, a financial analyst at Tigress, is optimistic about GOOGL stock and has recently maintained a buy rating, increasing the price target from $172 to $176.

In Q4 2023 and beyond, the analyst anticipates a significant increase in revenue growth for GOOGL, driven by enhanced monetization resulting from the integration of artificial intelligence and other capabilities, particularly in Search and YouTube.

Feinseth stated that GOOGL continues to be an exceptional value due to its leadership in various secular technology trends, such as search, mobile, cloud, data center, e-commerce, entertainment, home automation, autonomous vehicle technology, and health and fitness.

Alphabet's strong financial position allows it to fund growth initiatives, strategic acquisitions, and enhance shareholder returns through share buybacks, as emphasized by the analyst.

Feinseth ranks 337th among more than 8,600 analysts on TipRanks, with a successful rating rate of 58% and an average return of 9% per rating. (See Alphabet Insider Trading Activity on TipRanks)

Intel

After reporting better-than-expected third-quarter results and displaying good execution of its cost-saving initiatives, the semiconductor giant (INTC) has experienced a solid run in its stock.

On November 15th, Mizuho analyst Vijay Rakesh upgraded INTC stock from hold to buy and raised the price target from $37 to $50, stating that he believes INTC is preparing to launch new server products and make significant customer announcements in the upcoming six months.

The analyst anticipates that the compute and data center businesses will have a better roadmap in 2024 compared to competitors and the company's historical rollouts. He predicts that the data center business will benefit from the most prolific product launches, including Emerald Rapids, Sierra Forest, and Gaudi2/3 Accelerators. Additionally, he expects the company to benefit from an anticipated PC and data center industry upcycle.

Rakesh pointed out that the Altera FPGA business spinoff is expected to increase the company's value by $17 per share. The analyst predicts that 2025 will be a crucial year for the company due to the Intel Foundry Services ramp and the launch of the 18A, its most advanced node.

Rakesh ranks 62nd among over 8,600 analysts on TipRanks, with a 60% success rate and an average return of 19.1% per rating. (Check out Intel's financial statements on TipRanks.)

by TipRanks.com Staff

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