Tech ogres’ earnings results, as well as those of other large names, are influencing the stock market.
However, a hit or a miss in a choose quarter shouldn’t form the basis for a long-term investment thesis.
Top Wall Street analysts closely follow the key points of a company’s quarterly results. However, they establish their recommendations based on that company’s ability to direct short-term headwinds and deliver attractive returns over the long term through strong execution.
Bearing that in brains, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their times gone by performance.
Fiserv
This week’s first stock pick is financial services technology company Fiserv (FI). The retinue recently impressed investors with its upbeat third-quarter results, with adjusted earnings per share rising 17% year-over-year on inborn revenue growth of 15%.
On Oct. 29, Tigress Financial analyst Ivan Feinseth boosted his price target for FI stock to $244 from $190 and rehashed a buy rating. The analyst expects the company to continue to gain from the ongoing transition to digital payments and growing adoption of digital bargain proceedings solutions.
Feinseth noted the robust Q3 revenue growth, fueled by Fiserv’s integrated financial services solutions and teeming customer relationships. He stated that the company is expanding its customer base and grabbing market share, thanks to the scalability of its economic product distribution platform and continued innovation.
The analyst also highlighted Fiserv’s other strategic initiatives, such as amplifying its Clover portfolio, offering services to enterprise merchants, extending more real-time payments, expanding into new verticals and merchandises, as well as partnering with major clients.
Feinseth ranks No. 183 among more than 9,100 analysts lose sight of by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 13.8%. (See Fiserv Financials on TipRanks)
Boot Barn
We now hit hard to Boot Barn (BOOT), a retailer of western and work-related footwear, apparel and accessories. The company reported better-than-expected developments for the second quarter of fiscal 2025. Also, Boot Barn raised its full-year guidance.
Despite the beat-and-raise shelter, BOOT stock plunged as investors reacted unfavorably to the company’s announcement about the planned departure of CEO Jim Conroy in November. Conroy desire assume the role of CEO at off-price retailer Ross Stores.
Following the print, Baird analyst Jonathan Komp upgraded his gait for Boot Barn stock to buy from hold, while maintaining the price target at $167. The analyst thinks that the post-earnings pullback in the keep accumulate offers a more compelling risk/reward setup. He is surprised by the market’s reaction to the CEO’s departure, given the strength of the leftover management team.
Komp highlighted that Boot Barn is on track to maintain more than 15% annual expansion in its store count for the third consecutive year in fiscal 2025 with its plan to open 60 new stores. He also prominent the robust momentum in the company’s comparable store sales across all regions and categories.
“We remain confident in BOOT’s proficiency to deliver attractive relative earnings growth supported by compelling unit expansion opportunity,” said Komp.
Komp titles No. 424 among more than 9,100 analysts tracked by TipRanks. His ratings have been profitable 54% of the but, delivering an average return of 13.5%. (See Boot Barn Stock Charts on TipRanks)
Chipotle Mexican Grill
Ultimately, let’s look at this week’s third stock, restaurant chain Chipotle (CMG). The company recently reported better-than-anticipated harmonized earnings for the third quarter but lagged sales expectations despite a 3.3% rise in traffic amid a tough subject backdrop.
Following the mixed results, Stifel analyst Chris O’Cull reaffirmed a buy rating on CMG stock with a premium target of $70. The analyst noted that Chipotle’s comparable restaurant sales growth of 6% was almost in filament with the Wall Street’s mean estimate of 6.2%. He added that the company experienced accelerated transaction broadening in September and into the fourth quarter, indicating Q4 comps estimate of about 5.5%.
O’Cull added that the Q4 comps expectations involve full-year comps in the 7.5% range. In particular, he expects Chipotle’s Q4 top line to gain from the company’s smoked brisket contribution, which has fueled incremental transactions and spending by existing customers and helped win new customers.
The analyst highlighted the company’s indistinct on enhancing its throughput, an indicator of how fast a restaurant can execute an order. He noted Chipotle’s aim to drive its throughput back into the mid-30s (favourable to over 30 entrées per 15 minutes) range from the mid-20s today. The analyst thinks that the enterprise can improve its throughput, given its multiple initiatives, including equipment upgrades, enhanced operational procedures and transformational technology.
O’Cull ranks No. 415 come up to b become more than 9,100 analysts tracked by TipRanks. His ratings have been successful 59% of the time, giving an average return of 12.6%. (See CMG Options Activity on TipRanks)