Wall Street’s Top 3 Bull Market Picks for High Returns
We may be about to enter a wonderful era for U.S. stocks. That’s because the market has become much less fearful about inflation and high interest rates, while the economy still appears to be in very good shape. What’s more, the Street (finally!) appears to be ready to buy stocks other than The Magnificent Seven on a grand scale. Providing evidence for the latter point, RBC Capital, a large Canadian bank, has become very bullish on small-cap stocks, according to Barron’s, while CNBC’s Jim Cramer also recently “suggested (that) the market has renewed interest in smaller cap stocks, expanding outside the “Magnificent Seven” tech stocks.”
So with the stock rally poised to continue for some time while broadening well beyond the Magnificent Seven, here are three of Wall Street’s top bull market stock picks to buy. All of these names have excellent medium-term prospects, huge long-term potential, and are beloved by the lion’s share of Street analysts.
ServiceNow (NOW)
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Released in September, ServiceNow’s (NYSE:NOW) latest platform, named Vancouver, widely utilizes artificial intelligence. The firm claims that, as a result, the employees of its customers can get the data they need faster than ever before.
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Vancouver even makes programming much faster and easier by allowing users to create computer programs with “natural language,” rather than code.
While a few of NOW’s competitors have offered similar innovations, I believe that NOW’s AI may be one of the best available. That’s because many large, impressive enterprises have already agreed to utilize the platform. Specifically, “A huge department in the Government of the United States, (and) one of the biggest real estate firms in the world,” along with Deloitte, one of the world’s largest consulting firms, and chip giant Nvidia (NASDAQ:NVDA) have all selected Vancouver, CEO Bill McDermott reported recently.
Of the 37 Wall Street analysts who cover NOW stock, 34 rate it either a “buy” or a “strong buy,” making it one of Wall Street’s top bull market stock picks.
Quanta Services (PWR)
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Wall Street is falling in love with Quanta Services (NYSE:PWR), as the Street is starting to agree with my thesis about the company benefiting tremendously from the clean-energy revolution.
For example, investment bank Stifel last month cited the firm as a “pick and shovel” means of benefit from “the renewable energy transition and related growth in power grid investment,” along with government funding of those initiatives, according to Seeking Alpha. The bank kept a “buy” rating on the shares.
Last month, Goldman Sachs raised its rating on PWR to “buy” from “neutral,” given its attractive valuation and its long, successful history. Goldman’s belief that the company will benefit from strong “macro trends.” And Citi on Dec. 4 identified PWR as one of its top “buy ideas.”
Of the 15 Wall Street analysts who cover PWR stock, 12 rate it either a “buy” or a “strong buy,” making it one of Wall Street’s top bull market stock picks.
Visa (V)
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Visa (NYSE:V) is clearly benefiting from the strength of the American consumer, as it reported strong fiscal fourth-quarter results on Oct. 24.
Specifically, the credit-card network’s revenue climbed 11% last quarter versus the same period a year earlier, while its net income soared 19% year-over-year.
“Throughout the year, we have seen resilient consumer spending, ongoing recovery of cross border travel spend versus 2019 and continued growth across our new flows and value added services businesses,” CEO Ryan McInerney said in a statement.
Of the 38 Wall Street analysts who cover V stock, 31 rate it either a “buy” or a “strong buy,” making it one of Wall Street’s top bull market stock picks.
On the date of publication, Larry Ramer’s wife held a long position in NOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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