July 12, 2024

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Top Wall Street analysts like these stocks into the new year for their growth potential

2 min read

The logo of Uber is seen at a temporary showroom at the Promenade road during the World Economic Forum 2023, in the Alpine resort of Davos, Switzerland, on Jan. 20, 2023.

Arnd Wiegmann | Reuters

The Federal Reserve’s forecast for three rate cuts in 2024 has lifted investor sentiment, but macro uncertainty can weigh on investment decisions.

Wall Street’s analysts can dig into the details to find out which stocks are most resilient heading into the new year.

Here are three names favored by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Uber Technologies

Shares of ride-hailing platform Uber Technologies (UBER) have rallied this year, with investors appreciating the improvement in the company’s profitability and its recent inclusion in the S&P 500.

Recently, JPMorgan analyst Doug Anmuth called Uber one of his top picks for 2024. He reaffirmed a buy rating and raised the price target to $76 from $62. The analyst highlighted that Uber has a leading position in two secular growth industries: ridesharing and food delivery.

The analyst expects the company to navigate the ongoing macro challenges and emerge stronger, backed by its dominant position in the ridesharing market and growing food delivery adoption. He is also optimistic about Uber’s ability to expand into other areas with huge total addressable markets like grocery, convenience and alcohol delivery.

Anmuth also sees the possibility of significant earnings before interest, taxes, depreciation and amortization and free cash flow generation, driven by incremental margins on gross bookings of 10% for the mobility business and more than 5% for the delivery business.

“In terms of profitability, supply tailwinds should persist & support continued efficiency gains, further aided by ramping advertising, product improvements, defect leverage, and tighter headcount,” said Anmuth.

Anmuth holds the 100th position among more than 8,600 analysts on TipRanks. His ratings…

2023-12-24 08:53:00

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