Top Wall Street analysts like the growth prospects for these three stocks

The new year has just begun, but macro uncertainty is already hanging over investors, with Federal Reserve officials concerned about the impact of inflation and deflation.

During this period of volatility, investors can increase their portfolio returns by adding stocks backed by strong financials and long-term growth prospects. Investment research from top Wall Street analysts can inform investors when picking the right stocks because the experts base their analysis on an understanding of the macro environment and company’s unique circumstances.

Here are three stocks that are favored. High street professionalsAccording to Tipranks, a platform that analysts rate according to their performance.

We will start with a ride sharing and food delivery platform Uber technologies (UBER). The company delivered better-than-expected revenue and earnings for the third quarter of 2024, although overall bookings fell below expectations.

Recently Mizuho analyst James Lee He reiterated a Buy rating with a $90 price target on Uber Technologies stock. The analyst sees 2025 as an investment year for UBER. While these investments may impact the company’s earnings before interest, taxes, depreciation and amortization in the near term, they are expected to fuel long-term growth.

Based on his analysis, Lee expects Uber’s growth investments to drive compound annual growth of 16 percent over the FY23 to FY26 period, based on the company’s analyst daily target of mid-to-high-teens growth. The analyst is confident that Uber’s EBITDA growth is on track with a target of high 30s to 40% CAGR by analyst date. Lee said, “Although it means leaning towards growth investments, the economies of scale and increased efficiency should offset the marginal risks.”

Lee also thinks that his worries about the company’s mobility business growth seem overblown. The analyst expects FY25 gross bookings growth (forex neutral) to be in high demand, with the pace decelerating compared to the second half of 2024.

Additionally, the analyst expects total bookings for the Uber Delivery business to remain in the mid-teens in FY25. This increase is expected to keep food delivery market share growing at new heights. The analyst added that Mizuho’s checks confirmed that order frequency reached another high. Checks indicate strong product adoption with strong user penetration in the US, Canada and Mexico.

Lee is ranked No. 324 out of more than 9,200 analysts tracked by TipRanks. Its ratings are 60% profitable, which has an average return of 12.9%. look out Uber Technologies stock charts On TipRanks.

We will move to Datadog (a dog), a company that provides cloud monitoring and security products. In November, the company reported better-than-expected results for the third quarter of 2024.

On January 6, Mones analyst Brian White He reiterated a Buy rating on Datadog stock with a $155 price target. The analyst thinks the company has a more balanced approach to the generative artificial intelligence trend, “avoiding the absurd claims made by many in its software complex.” In the year He said DDOG performed well against its peers against a challenging software backdrop in 2024, but lagged behind other stocks in the Monus coverage universe.

That said, White thinks that Datadog, and the wider industry, will begin to see increased activity from the long-term development of generative AI over the next 12 to 18 months. Comparing DDOG’s performance to peers and highlighting its transparency with AIGenerative AI’s progress, the analyst predicted that AI-native customers accounted for more than 6% of the company’s annual recurring revenue (ARR) in Q3 2024, up 4%. Q2 2024 and 2.5% in Q3 2023.

White also highlighted some of the company’s AI offerings, including LLM Observability and its Gen AI assistant, Bits AI. Overall, the analyst is bullish on Datadog and thinks the stock should be overvalued compared to traditional software vendors due to its cloud-native platform, rapid growth and strong global tailwinds, as well as its AI-driven innovation. Growth opportunities.

White is ranked No. 33 out of more than 9,200 analysts tracked by TipRanks. His standards are 69% profitable, which has an average return of 20%. look out Datadog ownership structure On TipRanks.

Semiconductor giant Nivea (NVDA) is this week’s third stock pick. The company is considered one of the leading users of the advanced GPUs (graphics processing units) needed to build and run AI models.

Following a fiery conversation with Nvidia’s CFO Colette Kress, a JPMorgan analyst Harlan Sur He reaffirmed a buy rating on his $170 price target. The analyst emphasized the CFO’s assertion that the company’s Blackwell Platform manufacturing process is addressing supply chain challenges thanks to strong performance.

The company also expects spending in the data center space to remain strong in calendar year 2025, supported by Blackwell’s ramp-up and broad-based strength in demand. Additionally, Sur says management sees significant revenue growth opportunities with an installed base of more than $1 trillion worth of data center infrastructure.

Sur added that Nvidia expects to benefit from the accelerated transition to computing and growing demand for AI solutions. Management believes the company has a strong competitive advantage over ASIC (application-specific integrated circuit) solutions, including ease of adoption and comprehensive system solutions.

In agreement with this view, Sur said, “We believe that enterprise, vertical markets and sovereign customers will choose solutions based on NVIDIA.”

Among other key takeaways, Sur highlighted the release of next-generation gaming products and opportunities to expand beyond high-end gaming into markets such as AI PCs.

Sur is ranked No. 35 among the more than 9,200 analysts tracked by TipRanks. His standards are 67% profitable, which has an average return of 26.9%. look out The activity of Nvidia Hedge Funds On TipRanks.