Wall Street Favorites: 7 Nasdaq Stocks With Strong Buy Ratings for April 2024

When it comes to Nasdaq stocks with strong buy ratings, mega-cap tech stocks may be what may first come to mind. To some extent, this is a correct assumption. Wall Street’s analyst community has issued “strong buy” or “overweight” ratings on quite a few of the “Magnificent Seven” stocks.

That said, these aren’t the only Nasdaq-listed names sell-siders are bullish on right now. Many large-cap tech names have also received similarly high marks from sell-side analysts over the past few months.

Moreover, remember that while heavily associated with tech stocks, scores of non-tech stocks across all sectors also trade on the Nasdaq exchange. Plenty of these names have also garnered a “strong buy” or “overweight” ratings since the start of the year.

The accuracy of sell-side ratings has long been subject to debate. It may be worth taking a look at these lauded Nasdaq stocks, such as the following seven.

Academy Sports and Outdoors (ASO)

Academy Sports and Outdoors (NASDAQ:ASO) is a sporting goods retailer, with stores located primarily in Texas, as well as across the southern and midwestern United States. Last year, I pointed out ASO as being one of the undervalued Nasdaq stocks.

ASO stock has traded sideways since then. Recent fiscal results and guidance from the company have fallen short of expectations. Yet while I’m more skeptical about the stock than before, one sell-side analyst remains very bullish. Last August, Telsey Advisory Group initiated coverage of Academy Sports and Outdoors stock.

Giving ASO an “outperform” rating,” and a $72 per share price target, Telsey cited the potential for Academy to “return to growth” during 2024. The analyst firm has twice reiterated its “outperform” rating. Telsey raised its price target in the first reiteration to $83 per share, but lowered in the second reiteration to $75 per share.

Crowdstrike Holdings (CRWD)

“AI mania” has been a boon for tech stocks across the board, and Crowdstrike Holdings (NASDAQ:CRWD) stock is no exception. Shares in the cybersecurity solutions firm have rallied by a staggering 144.73% over the past year.

While many other large and mega-cap Nasdaq stocks have outperformed it during this time frame, these massive gains for CRWD stock are nothing to sneeze at. That said, following this massive run-up, Crowdstrike shares have become pricey. Right now, CRWD trades for 81.1 times forward earnings.

But while this may have the valuation-conscious leery about entering a position, keep in mind that analysts at Raymond James have yet to reiterate or change an “outperform” rating on CRWD, issued in January.

The same goes for analysts at Bernstein, who also issued an “outperform” rating on the stock at that time. This could change, however, after Crowdstike next reports earnings, sometime next month.

East West Bancorp (EWBC)

East West Bancorp (NASDAQ:EWBC) is a California-based regional bank, focused on providing personal and business banking services to the Chinese-American community.

Regional banks have contended with many challenges lately, but based on a recent sell-side rating, EWBC has been one of the more resilient names in the space.

Last month, Barclays analyst Jared Shaw issued an “overweight” rating on EWBC stock, giving it a $106 per share price target. In his bullish assessment, Shaw cited management’s strong execution. Per the analyst, East West Bancorp has continued to increase its deposits and loan, all while maintaining “excellent credit underwriting” and staying well-capitalized.

With EWBC trading for around $74 per share today, reaching Shaw’s price target may seem like a tall order.

However, if the bank’s strengths persist, macro conditions improve, and sentiment for regional bank stocks shift back to bullish, shares could hit this price target sooner than you think.

Microsoft (MSFT)

You probably don’t find it surprising that Microsoft (NASDAQ:MSFT) is one of the Nasdaq stocks getting a lot of love from the analyst community right now.

The software giant has so far been one of the early-movers in generative artificial intelligence technology. Because of this, the strong buy ratings keep coming in.

For instance, on March 20, Keybanc issued an “overweight” rating, and a $490 per share price target, on MSFT stock. In their view, “Microsoft sits in the catbird seat in two of the three main ways software vendors can monetize the AI wave.”

That’s not all. On April 11, Morgan Stanley reiterated its “outperform” rating on MSFT, raising its price target to $520 per share. In the sell-side firm’s view, Microsoft’s lead position in cloud computing and gen AI points to annual earnings doubling to $29 per share by 2029.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is another “Magnificent Seven” component that’s still earning top grades from Wall Street analysts.

With the cool down in “AI mania,” investors have also cooled down in their excitement for this leading AI chip designer.

The next big move for NVDA stock may be just around the corner.. The company is expected to report earnings sometime next month. That said, if you’ve been thinking about exiting a NVDA position, a look at the latest sell-side commentary on Nvidia could change your view.

Last week, Raymond James’ Srini Pajjuri maintained his “strong buy” rating on Nvidia, and raised his price target from $850 to $1000 per share. Pajjuri believes concerns about a slowdown in AI chip sales are “unwarranted,” given demand still exceeds supply.

Analysts at Morgan Stanley have also recently raised their NVDA price target to $1000 per share, as InvestorPlace’s Larry Ramer discussed on April 11.

Synopsys (SNPS)

Electronic design automation company Synopsys (NASDAQ:SNPS) is another of the Nasdaq stocks that have recently received a “strong buy” rating or the equivalent to a “strong buy” rating from analysts.

On April 4, Piper Sandler’s Clarke Jeffries issued an “overweight” rating, and a $665 per share price target, on SNPS stock. In the research note, the analyst cited several factors driving this bullish view on shares.

First, Jeffries pointed out that the company has sustained strong levels of annualized revenue growth. Alongside this, Synopsys’ margins have improved considerably over the past five years.

Besides the strong performance of its underlying business, the analyst also believes acquisitions and divestitures are also a catalyst for SNPS.

The company’s pending purchase of Ansys (NASDAQ:ANSS) is poised to be accretive to shareholders. Synopsys’ sale of its Software Integrity Group segment stands to be a major positive for further margin expansion.

Weatherford International (WFRD)

On February 28, Barclays’ J. David Anderson issued an “overweight” rating, and a $135 per share price target, on Weatherford International (NASDAQ:WFRD). At the time, this oil equipment and services company was trading for just over $100 per share.

WFRD stock has since climbed to $120 per share, but if you decide to take heed of this analyst recommendation, upside may be more substantial than you think.

In the Barclays research note, Anderson argued that the key factor pointing to higher prices for Weatherford was the company’s continued implementation of cost cutting and other efficiency measures.

However, couple this with a recent positive development for the energy sector. That would be the latest surge in oil prices. With oil demand outpacing expectations, exploration efforts could rise as well.

This could further boost demand for Weatherford’s products and services. Hence, giving shares an organic growth catalyst, alongside a turnaround catalyst.

On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.