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Top Wall Street analysts are confident in the long-term potential of these 3 stocks – NBC 5 Dallas-Fort Worth
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Top Wall Street analysts are confident in the long-term potential of these 3 stocks – NBC 5 Dallas-Fort Worth

The results of tech giants, as well as those of other big names, influence the stock market.

However, success or failure in a single quarter should not form the basis of a long-term investment thesis.

Top Wall Street analysts closely follow key details of a company’s quarterly results. However, they base their recommendations on that company’s ability to weather short-term headwinds and generate attractive long-term returns through strong execution.

With this in mind, here are three values ​​favored by the best street prosaccording to TipRanks, a platform that ranks analysts based on their past performance.

Fiserv

This week’s top stock pick is a financial services technology company Fiserv (FI). The company recently impressed investors with its upbeat third-quarter results, with adjusted earnings per share up 17% year-over-year and organic revenue growth of 15%.

On October 29, Tigress Financial analyst Ivan Feinseth raised its price target on FI stock from $190 to $244 and reiterated a Buy rating. The analyst expects the company to continue to benefit from the ongoing shift to digital payments and the growing adoption of digital transaction solutions.

Feinseth highlighted strong revenue growth in the third quarter, fueled by Fiserv’s integrated financial services solutions and strong customer relationships. He said the company is expanding its customer base and capturing market share, thanks to the scalability of its financial product distribution platform and continuous innovation.

The analyst also highlighted Fiserv’s other strategic initiatives, such as expanding its Clover portfolio, offering services to merchant businesses, expanding into more real-time payments, expanding into new sectors and vertical markets, as well as partnership with major clients.

Feinseth ranks 183rd among more than 9,100 analysts tracked by TipRanks. Its ratings have been profitable 62% of the time, providing an average return of 13.8%. (See Fiserv Financials on TipRanks)

Boot barn

We now move on to Boot barn (BOOT), a retailer of western and work shoes, clothing and accessories. The company reported better-than-expected results for the second quarter of fiscal 2025. Boot Barn also raised its guidance for the full year.

Despite an up-and-down quarter, BOOT stock plunged as investors reacted unfavorably to the company’s announcement regarding planned departure from CEO Jim Conroy in November. Conroy to take on CEO role at discount retailer Ross Stores.

Following the printing, Baird’s analyst Jonathan Komp upgraded its rating on Boot Barn shares to Buy from Hold, while maintaining the price target at $167. The analyst believes the stock’s post-earnings pullback offers a more compelling risk/reward setup. He is surprised by the market reaction to the CEO’s departure, given the strength of the remaining management team.

Komp highlighted that Boot Barn is on track to maintain more than 15% annual growth in its store count for the third consecutive year in fiscal 2025 with its plan to open 60 new stores. He also noted the company’s strong same-store sales momentum across all regions and categories.

“We remain confident in BOOT’s ability to deliver attractive relative earnings growth, supported by attractive unit expansion opportunities,” Komp said.

Komp ranks 424th among more than 9,100 analysts tracked by TipRanks. Its ratings have been profitable 54% of the time, providing an average return of 13.5%. (See Boot Barn Stock Charts on TipRanks)

Chipotle Mexican Grill

Finally, let’s look at the third title of this week, restaurant chain Chipotle (GCM). The company recently reported better-than-expected results adjusted profit for the third quarter but a turnover lower than expectations despite a traffic increase of 3.3% in a difficult commercial context.

Following the mixed results, analyst Stifel Chris O’Cull reaffirmed a Buy rating on CMG stock with a $70 price target. The analyst noted that Chipotle’s comparable restaurant sales growth of 6% was nearly in line with Wall Street’s average estimate of 6.2%. He added that the company experienced accelerated transaction growth in September and the fourth quarter, indicating an estimate for the fourth quarter accounts of around 5.5%.

O’Cull added that comp expectations for the fourth quarter imply full-year comps in the range of 7.5%. In particular, he expects Chipotle’s fourth-quarter revenue to benefit from the company’s smoked brisket offering, which fueled additional transactions and spending from existing customers and helped gain new customers.

The analyst highlighted the company’s focus on improving its throughput, an indicator of how quickly a restaurant can fulfill an order. He highlighted Chipotle’s goal of getting its throughput back to the mid-30s (serving more than 30 entrees every 15 minutes), compared to the mid-20s today. The analyst believes the company can improve its throughput, given its multiple initiatives, including equipment upgrades, operational procedure improvements and transformational technology.

O’Cull ranks 415th among more than 9,100 analysts tracked by TipRanks. Its ratings were successful 59% of the time, delivering an average return of 12.6%. (See GCM Options Activity on TipRanks)