To be blunt, buying a Wall Street recommended stock can be a mixed bag. While we trust experts in say the legal and medical fields, it’s a different proposition in the equities space. No matter how smart you are, how many certifications you may have received, or how much time you spent pouring over charts and financials, the harsh reality is this: no one knows what will happen next.
So, should you disregard a Wall Street recommended stock? Not necessarily – otherwise, there’d be no point in reading ahead, now would there? In all seriousness, becoming a respected analyst requires traversing through blisteringly inclement conditions and competition. Not just anybody can become an analyst. As a result, you won’t see too many of these folks throw their hard-earned reputation away on some nonsense security.
Also, the top analysts can influence the market. It’s one thing if some random person like me says buy or sell. It’s quite another if an established expert says it.
On that note, below are three ideas for Wall Street recommended stock to consider.
Microsoft (MSFT)
As a technology stalwart whose business software programs have become synonymous with school and work, Microsoft (NASDAQ:MSFT) needs no introduction. By logical deduction, it’s no surprise that it’s a Wall Street recommended stock. In particular, Goldman Sachs’ Kash Rangan pegged MSFT as a “buy” with a $450 price target. That implies a bit over 10% upside potential.
Rangan isn’t alone, with Jefferies analyst on the same day rating MSFT a “buy” with a $456 target, implying almost 14% upside. Overall, Microsoft enjoys a unanimous strong buy view among 31 expert voices. Overall, the average price target lands at $443.20, projecting 8.5% growth. Further, the maximum price target clocks in at $600, a forecast that projects 47% return.
According to Yahoo Finance, Microsoft beat expectations on the top and bottom lines for its second-quarter earnings report. Most notably, its all-important cloud revenue hit $33.7 billion, exceeding the target of $32.2 billion. Still, MSFT traded slightly negative following the disclosure.
With consistent profitability and perhaps permanent relevance, it’s hard to disagree with the experts. It’s a Wall Street recommended stock for a good reason.
Pfizer (PFE)
Another enterprise that doesn’t need an introduction, pharmaceutical company Pfizer (NYSE:PFE) saw its prominence rise due to the Covid-19 crisis. As one of the top vaccine developers, PFE enjoyed substantial market growth into late 2021. Unfortunately, since the beginning of 2022, circumstances have not looked auspicious for the pharma giant. Sure enough, PFE’s fallout coincided with fading fears of the SARS-CoV-2 virus.
Still, analysts see a long-term opportunity with Pfizer. Notably, Jefferies’ Akash Tewari pegged PFE as a “buy” with a $32 price target. This forecast represents an upside potential of over 18%. Overall, analysts consider PFE a consensus moderate buy, breaking down as six buys and 11 holds. Also, the average price target comes in at $32.53. The high side target is $45, projecting growth of over 67%.
Recently, Pfizer posted a surprise adjusted Q4 profit of 10 cents per share. In sharp contrast, experts anticipated a loss of 22 cents. Moving forward, the company can potentially leverage its acumen developed from the vaccine race to other uses. For the optimist, PFE ranks as a Wall Street recommended stock.
Adtalem Global Education (ATGE)
As stated earlier, analysts have reputations to keep. Therefore, they don’t want to be utterly reckless with their recommendations. With that being the case, when these experts decide to let their hair down, it could be a positive sign for speculators. Recently, Jeffry Meuler of Robert W. Baird made a bold call on for-profit higher education institution Adtalem Global Education (NYSE:ATGE). Essentially, the argument is that ATGE should be bought on weakness.
And it’s weak, there’s no denying that. On Tuesday, Adtalem suffered a market loss of nearly 19%. Underlining the disastrous print was a short seller report by Fahmi Quadir. Worryingly nicknamed “The Assassin,” Quadir stated in part that Adtalem represented “a toxic byproduct of an imperfect higher education system.” As well, she blasted the company for wasting federal tax dollars on ineffective programs. Ouch.
Still, Meuler isn’t alone in believing in ATGE’s upside potential. Shares overall have a moderate buy view with a $65 average price target. Finally, on the same day as the short seller report release, a major entity bought 875 contracts of the Feb 16 ’24 55.00 Call option. So, it’s an epic battle if you want to pick a side.
On the date of publication, Josh Enomoto did not have (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.