The Ultimate Stocks to Buy: 7 Top-Rated, Options-Backed and Wall Street-Approved Picks
While wading through difficult waters, investors would be wise to lean into stocks to buy that come with Wall Street’s seal of approval. Let’s face it: while analysts and experts occasionally miss the mark, more often than not, they nail it. The insights they provide stem from years of rigorous training and real-world experience in high-stakes trading environments.
Casting judgment from the sidelines is easy. But remember, these market gurus handle immense portfolios, making decisions that could make or break fortunes. They’re continuously under pressure to perform at their peak.
Sure, the stock market offers no certainties. Yet, in these uncertain times, aligning your bets with those of the pros can give your portfolio the edge. Consider this list of top-rated stocks to buy that have all received resounding endorsements from the experts.
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Philip Morris (PM)
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A longstanding titan in the tobacco industry, Philip Morris (NYSE:PM) often finds itself at the center of heated debates. Despite its divisive nature, there’s no denying the company’s deep understanding of its clientele. This insight becomes especially valuable as the tobacco market sees a paradigm shift toward e-cigarettes and vaporizers. Thus, it’s perfectly poised to craft e-products that resonate authentically with its consumer base.
Further, TipRanks places PM solidly among the top-rated stocks to buy. Its technical analysis indicator suggests a decisive lean toward a “buy” consensus. Though PM’s shares haven’t shone brightly this year, current market behavior suggests we might be witnessing the calm before an upswing.
Delving into the options world, there’s a tangible buzz around PM. Implied volatility (IV) steadily ascends from a $100 to $145 strike price. This gradient might hint at some investor optimism or expectations brewing for these levels. For those keeping an eye on the longer game, options set for a Jan. 17, 2025 expiry see institutional players hedging bets on bought calls across diverse strike prices.
Topping off this assessment, the analyst consensus resoundingly endorses PM with a strong buy recommendation. Their foresight paints a bullish picture: an average 12-month target of $116.71, signaling a potential leap of nearly 21%. For the optimists, the ceiling is even higher at $122, translating to a potential surge surpassing 25%.
Meta Platforms (META)
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Once merely recognized as a social media platform, Meta Platforms (NASDAQ:META) has now erupted into a behemoth in the tech landscape. Its strategic forays into artificial intelligence and machine learning aren’t just ambitious tech plays; they’re calculated moves to capitalize on the immense reservoir of user data they’ve aggregated over the years. Given such forward-thinking endeavors, it’s hard to argue against its position among the top-rated stocks to buy.
A look at TipRanks reveals the optimism surrounding META, with a predominant “buy” consensus shining through. A staggering gain of nearly 151% since the year’s inception hasn’t dampened the enthusiasm. The optimism isn’t solely based on historical performance, either. The institutional bigwigs see a shimmering horizon for META.
Case in point: a colossal bet made on July 31. An order for $270 calls expiring on Nov. 17, 2023, saw an eye-popping volume of 110,001 contracts against an open interest of a mere 1,166 contracts. Diving into the financials, this ambitious move cost a premium of a whopping $357.5 million, as detailed by Fintel.
The analysts’ take? They’re boarding the META train in full force, rating it a strong buy. With an average projected target of $376.19, they’re forecasting a robust 25% ascent. For those looking skyward, the pinnacle sits at $435, indicating a potential rally of nearly 45%.
Agnico Eagle Mines (AEM)
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At a cursory glance, Agnico Eagle Mines (NYSE:AEM) is a high-risk prospect on the list of top-rated stocks to buy. With its heartbeat tied to precious metals, its vulnerabilities lie in the crosshairs of the Federal Reserve’s current hawkish stance. Rising borrowing costs inherently cast shadows over gold prices, creating headwinds for miners like AEM.
Yet, the technical indicators from TipRanks suggest a counter-narrative, signaling a “buy” consensus. Though the current year painted a lackluster picture, shares seemingly stand their ground now, poised on the brink of a potential rebound. A pivotal moment awaits.
The IV spectrum for AEM options paints a curious picture. However, the magnetic pull toward the $55 strike price, evident in its spiked IV, is undeniable. The financial titans are circling, as is evident in their bullish stance on $70 calls expiring Jan. 19, 2024, and the palpable appetite for $80 calls set for Jan. 17, 2025.
Analyst consensus? A resounding vote of confidence with a strong buy rating. Their median target? A promising $62.59, signaling a near 28% upside while the loftier estimates touch $71, envisioning a 45% ascent.
SeaWorld (SEAS)
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SeaWorld (NYSE:SEAS) swerves off the conventional path when hunting for top-rated stocks to buy. It tantalizingly dangles the “revenge travel” carrot — the collective global itch to experience and explore after pandemic-induced confinement. With 2023 still riding this wave, the spotlight turns on leisure sectors, including theme parks like SeaWorld.
TipRanks’ analysis, at first, seems cautious with a “neutral” consensus. SEAS shares haven’t exactly been the belle of the ball this year, dipping nearly 11%. Yet recent trends show only a slight downtick, hinting at possible stability. And where there’s stability, potential growth isn’t far off.
The options landscape for SEAS is intriguing, with a notable deviation at the $55 strike price where IV sharply ascends. The big financial players aren’t on the sidelines, diving in with the purchase of $50 calls slated for a Dec. 15, 2023 expiry.
Wrapping up with the analyst perspective, SEAS earns a strong buy nod. Their sights are set optimistically at an average target of $70.13, forecasting a compelling 44% upside. The more ambitious gaze even reaches $78, a potential leap of 60%.
Las Vegas Sands (LVS)
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The embodiment of luxury entertainment, Las Vegas Sands (NYSE:LVS) navigated a turbulent path when the world ground to a halt amid the pandemic. Travel bans drained life from bustling casinos and opulent resorts. But with the dark clouds of Covid-19 lifting, the glitz and glamour of LVS started to shimmer once more.
However, a peek into TipRanks’ data reveals a “sell” consensus. With LVS’s value plummeting by over 9% in just a month, some are raising their eyebrows. But might this be a silver lining? This apparent setback paints LVS as a contrarian jewel in the eyes of astute options traders.
An undeniable fervor bubbles around LVS’s options landscape. The IV curve makes a remarkable leap from the $53 to $85 strike price, underscoring significant anticipation. Heavyweight institutional bets are at play, with significant movement around $50 calls slated for a Dec. 15, 2023 expiry — a staggering $40.25 million premium tethered to it.
Echoing this bullish sentiment, analysts champion LVS with a strong buy, forecasting an optimistic average price target of $70.39 — a potential 44% boost. The most bullish projection touches $80.50, a whopping 65% leap.
Nvidia (NVDA)
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Adding Nvidia (NASDAQ:NVDA) to a roster of top-rated stocks to buy might raise a few eyebrows. Its stellar 200% surge since January almost renders its inclusion redundant. Owing its meteoric rise to its groundbreaking graphics processing units — pivotal in AI innovations — Nvidia’s stock trajectory has become the stuff of legends on Wall Street.
Yet, shadows loom large. Though TipRanks beams a “buy” sentiment, the past week saw NVDA shed 5% off its stock value, with an 11% decline since August’s end. However, this might be the calm before another storm.
The nuanced dance of NVDA’s IV hints at a complex strategy. The IV spectrum’s lower end brims with activity, suggesting traders are cushioning themselves. Still, from $500 to $980 IV surges, signaling optimism. And the institutional giants are in on the action: hefty trades around $430 calls with a Dec. 15, 2023 expiry, carried a premium tag of a staggering $237.25 million.
Analysts rally behind NVDA with fervent strong buy endorsements. The roadmap they draw is an enthralling one: an average price target of $636.32 — hinting at a 45% upswing. The bolder vision reaches the heights of $1,100, tantalizing with a potential 150.57% ascent.
SolarEdge Technologies (SEDG)
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Navigating the volatile landscape of the renewable energy sector, SolarEdge Technologies (NASDAQ:SEDG) emerges as a high-stakes contender on our list of top-rated stocks to buy. This year witnessed a tumultuous shift for solar entities, as market dynamics brought price pressures to bear. A significant headwind for solar was investors’ fickle allegiance, abandoning the solar camp in favor of other compelling opportunities.
The turbulence left scars on SEDG’s stocks. Since January, the shares took a nosedive, plummeting by an alarming 51%. TipRanks’ metrics echo this bleak sentiment, placing SEDG in the “sell” camp. There’s no sugarcoating here: venturing into SEDG is a dicey affair.
Diving deeper, though, and the IV landscape is revealing. The palpable tension in the lower strike prices might signify protective hedging maneuvers. Yet hope shines through as IV spikes from $150 to $245, suggesting whispers of bullish speculation.
Adding another layer of intrigue, institutional players executed some fascinating moves. They offloaded $400 puts slated for a Jan. 19, 2024 expiry, attached with a hefty $13.2 million premium, possibly hinting at a positive outlook. Additionally, there’s noticeable traction around bought $490 calls earmarked for Jan. 17, 2025.
Defying the odds, analysts rally behind SEDG, stamping it with a robust strong buy endorsement. Their foresight is nothing short of audacious: projecting an average target of $292.53, implying a 109% leap. The more optimistic gaze reaches $386, which is a whopping 175% upside potential.
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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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