Stock Picks from Winning Analysts.
Wall Street analysts come out with new opinions and price targets for stocks on a daily basis. Unfortunately, with so many analysts and so many opinions out there, is can be difficult for investors to determine which voices are worth listening to and which ones are not. TipRanks tries to assist investors in determining the most credible analysts on Wall Street by compiling lists of analyst ratings, tracking their performance and then ranking analysts based on the accuracy of their picks. Here's a look at a recent stock pick from each of the seven highest-ranked Wall Street analysts.
Adobe (ticker: ADBE)
The highest-rated analyst out of more than 5,000 analysts included on TipRanks is Canaccord Genuity's Richard Davis. Davis has an impressive 74 percent success rate on his stocks, and his 386 stock picks have generated an average annual return of 34.1 percent. Among his recent ratings is Adobe. Although the company took a hit in the fourth quarter it is still up about 100 percent from where it was since Davis first turned bullish on the stock in 2016. Davis has a "buy" rating and $290 price target for ADBE stock.
The next highest-rated TipRanks analyst is RBC Capital's Gerard Cassidy. Cassidy actually has a higher success rate than Davis at 81 percent, but his 254 stock picks have generated a slightly lower average annual return of 29.1 percent. Cassidy recently reiterated his bullish take on a big bank stock, Citigroup. Despite concerns over a flat yield curve and a potential slowdown in interest rate hikes in 2019, Cassidy recently said U.S. banks like Citigroup are on track for record profits in the near future. Cassidy has a "buy" rating and $76 price target for C stock.
Third on TipRanks' list of top analysts is Jefferies analyst Brian Fitzgerald, who has an 80 percent success rate and his 212 stock picks have generated an average annual return of 35 percent. One recent Fitzgerald pick is TechTarget, a marketing data company that provides services for information technology companies. TechTarget's stock has taken a beating in the second half of 2018, but the sell-off may be a buying opportunity. Fitzgerald has a "hold" rating for TTGT stock, but his $23 price target suggests more than 100 percent upside from recent levels.
Microsoft Corp. (MSFT)
RBC Capital analyst Ross MacMillan is fourth on the TipRanks list. MacMillan has a 76 percent success rate, and his 303 ratings have generated an average annual return of 25.1 percent. Earlier this month, MacMillan reiterated his bullish outlook for tech giant Microsoft. MacMillan has said the key metric for Microsoft investors to watch is growth in its cloud segment. Commercial cloud revenue was up 47 percent in the most recent quarter, including Azure revenue growth of 76 percent. MacMillan has a "buy" rating and $124 price target for MSFT stock.
The Trade Desk (TTD)
Oppenheimer analyst Brian Schwartz takes fifth place on the TipRanks list. Schwartz has a 71 percent success rate, and his 389 stock picks have generated an average annual return of 23 percent. Earlier this month, Schwartz said business trends at programmatic online advertising leader The Trade Desk have been extremely positive. He says company management has built a "sustainable technology advantage with a core platform refresh," and investors shouldn't be surprised if the company rides the wave of programmatic advertising spending to a fourth-quarter earnings beat. Schwartz has a "buy" rating and $160 price target for TTD stock.
Pivotal Software (PVTL)
RBC Capital's third analyst to appear on the TipRanks list is Matthew Hedberg. Hedberg has a 72 percent success rate, and his 314 stock picks have generated an average annual return of 27.9 percent. Hedberg's latest pick is enterprise software company Pivotal Software. The company bounced back from a second-quarter billings miss and reported third-quarter earnings, revenue and guidance beats in December. PVTL stock is once again positive on the year, and the strong quarter was enough for Hedberg to upgrade it to a "buy" rating and raise his price target to $22.
Mark Lipacis is the second Jefferies analyst to make the TipRanks top seven. Lipacis has a 69 percent success rate, and his 313 ratings have generated an average annual return of 24.7 percent. In December, Lipacis raised his target for Broadcom after the company reported an earnings beat and said it expects another year of double-digit revenue growth in 2019. Broadcom also has a generous 4.3 percent dividend yield, making it a safe source of yield in a difficult market. Lipacis has a "buy" rating and $314 price target for AVGO stock.