Stocks to buy

With a banking sector implosion compounding the Federal Reserve’s possible decision to aggressively raise interest rates, investors looking for stocks to buy may want to align their acquisitive strategies with what the experts believe. In other words, a significant value may exist in targeting securities that enjoy strong buy consensus ratings among Wall Street analysts. To be fair, experts are humans meaning that they can always get things wrong. However, at scale, they may be more accurate than not. After all, these folks study the market day in and day out. If they make too many bad calls, their clients will likely gather pitchforks. Thus, an incentive exists not to BS a bunch of ideas but to give legitimate opinions.

On that note, you may want to consider what these experts have to say. Below are the stocks to buy that analysts love right now.

MSFT Microsoft $253.92
AMZN Amazon $92.43
CYBR CyberArk $139.02
WPM Wheaton Precious Metals $43.27
COP ConocoPhillips $100.68
TRGP Targa Resources $72.21
VLN Valens Semiconductor $3.47

Microsoft (MSFT)

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One of the world’s biggest and most important technology companies, Microsoft (NASDAQ:MSFT) easily ranks among the top stocks to buy for just about any reason. With its myriad business units offering relevancies across multiple compelling segments, MSFT should keep investors happy for the long haul. Since the Jan. opener, MSFT gained nearly 4% of its equity value.

Currently, MSFT enjoys a strong buy consensus among Wall Street analysts. This view breaks down to 25 buys, four holds, and one sell. On average, the experts forecast MSFT to hit a price of $292.07. If so, this would imply upside potential of over 17%. Within the spectrum, the most optimistic target stands at $411. On the low end, one analyst projects a downside risk of $250. Overall, though, Wall Street’s best have reason to be bullish on Microsoft. Operationally, the tech firm delivers the goods. Its three-year revenue growth rate stands at 17.4%, outpacing 72% of the competition. Also, its net margin pings at 33%, above 96.53% of the industry. Finally, it features strong stability in the balance sheet.

Amazon (AMZN)

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A powerhouse in the e-commerce space, Amazon (NASDAQ:AMZN) dominated market proceedings for years. Unfortunately, the company took a beating in 2022 as skyrocketing inflation took a massive toll on consumer sentiment. To be fair, it’s still struggling. Since the Jan. opener, AMZN only gained less than 6%. In the trailing one-year period, it’s down almost 38%.

Nevertheless, Wall Street analysts remain incredibly optimistic about Amazon, pegging its shares as a consensus strong buy. Among 37 experts, 36 of them view AMZN as a buy. The one holdout is appropriately a hold. Further, their average price target stands at $137.05, implying 51% upside potential. On the upper end of the pricing spectrum, the most bullish expert anticipates shares hitting $192. However, on the other side, the low-end target sits at $106.

Financially, Amazon represents a trickier narrative. Notably, Gurufocus.com warns its readers that AMZN may be a possible value trap. Still, what’s attractive is that Amazon remains a growth monster, posting a three-year revenue growth rate of 21.9%. Therefore, it’s worth consideration for stocks to buy for speculators.

CyberArk (CYBR)

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An information security company, CyberArk (NASDAQ:CYBR) specializes in identity management solutions. Per its public profile, companies in the financial services, energy, retail, healthcare, and government sectors primarily utilize CyberArk’s technologies. As economic pressures build amid geopolitical tensions and monetary policy concerns, nefarious actors may ramp up their dubious activities.

Therefore, it’s not surprising that Wall Street analysts peg CYBR as a consensus strong buy. As well, the magnitude of consensus isn’t surprising either. Among 19 experts, 17 of them view CYBR optimistically. The remaining two peg shares a hold. On average, their price target stands at $174.21, implying nearly 25% upside potential. On the high end, we have a forecast for $225. And on the low, CYBR risks dropping to $145.

Notably, Gurufocus.com identifies CYBR as modestly undervalued. However, CyberArk’s financials at the moment don’t immediately attract investors. Rather, it’s mostly about the narrative. With the identity and access management market anticipated to grow at a compound annual growth rate (CAGR) of 13.7% between 2022 to 2027, CYBR may be one of the stocks to buy.

Wheaton Precious Metals (WPM)

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Ordinarily, a rising interest rate environment doesn’t bode well for precious metals-related enterprises. Therefore, the inclusion of Wheaton Precious Metals (NYSE:WPM) on this list of stocks to buy that analysts love may strike some readers as odd. However, it’s important to note that with China’s economic reopening, the implied greater activity could translate to higher energy prices. That would be significantly inflationary, which should help WPM.

Presumably, then, most folks on Wall Street take this bullish perspective on WPM, with analysts pegging it a strong buy. Among nine analysts, all but one rate it a buy. The holdout again is a hold. Moreover, their average price target stands at $47.34, implying 17% upside potential. At the top end of the estimated spectrum, one bull believes WPM will hit $54.24. On the low end sits a forecast of $36.87. For full disclosure, Gurufocus.com warns WPM may be modestly overvalued. However, if inflation does eventually rule 2023, this perspective may change. For now, prospective investors can take comfort in Wheaton’s operational strengths, such as solid revenue growth and excellent net margin.

ConocoPhillips (COP)

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While some stocks to buy that analysts love may be confusing or controversial, ConocoPhillips (NYSE:COP) practically sells itself. One of the biggest hydrocarbon specialists, COP finds itself sitting on incredibly powerful (albeit cynical) undercurrents. Most pressingly, geopolitical flashpoints limit western nations’ access to hydrocarbon supplies, implying robust demand. Also, the rapid normalization of society should boost COP stock.

With such a powerfully bullish backdrop, it’s no surprise that analysts peg COP as a consensus strong buy. Among 17 experts, 13 view COP as a buy while the remaining four views it as a hold. On average, their price target stands at $139.31. At the maximum end of the estimated spectrum, we have a target of $160. On the low end, COP might fall to $102. Financially, ConocoPhillips enjoys a plethora of positive attributes. First, its price-earnings-growth (PEG) ratio sits at 0.29 times. In contrast, the sector median value is 0.77 times. Second, the company delivers operationally, with a sector-dominating three-year revenue growth rate of 28.4%. Also, its net margin pings at 23.8%, outpacing 77.12% of its peers.

Targa Resources (TRGP)

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A Fortune 500 company based in Houston, Texas, Targa Resources (NYSE:TRGP) is a midstream energy infrastructure corporation. Primarily, the company focuses on natural gas and natural gas liquids (NGL). Due to a combination of geopolitical flashpoints and skyrocketing inflation, Targa found itself at the center of attention. While it’s not the most blisteringly amazing performer, it’s a steady gainer, moving up over 7% in the trailing year.

Based on the underlying fundamental relevance, it’s no surprise that Wall Street analysts peg TRGP as a consensus strong buy. Also, it’s a unanimous strong buy among the 12 covering experts. In addition, their average price target stands at $100.58, implying nearly 37% upside potential. At the top end of the estimated spectrum, one bull forecasted a price of $119. At the bottom, shares could fall to $87.

Largely, investors will probably be banking on broader narratives to lift Targa Resources. Nevertheless, it does enjoy positive attributes, such as a three-year revenue growth rate of 34.4%. Also, the company’s return on equity stands at 48.49%, above 87% of the sector. Therefore, it makes for an interesting idea for stocks to buy.

Valens Semiconductor (VLN)

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Based in Israel, Valens Semiconductor (NYSE:VLN) is a fabless manufacturing company providing semiconductors for the automotive and audio-video industries. Fundamentally, Valens represents a tricky situation. On the positive side, we can always use semi-manufacturers located in friendly jurisdictions. But on the other hand, a troubled economy may impinge on the automotive and audio-video sectors.

Still, Wall Street analysts believe in Valens, pegging VLN as a consensus strong buy. As well, we have a unanimous strong buy view, although this time covering only four analysts. Among them, their average price target stands at $7.50, implying over 119% upside potential. At the top end, we have a price target of $10. On the low end, VLN may fall down to $6 per share. In all honesty, investors considering VLN as one of the stocks to buy must exercise patience and discretion. Here, the company’s three-year revenue growth rate sits at 43.5% below zero. As well, its net margin is 30.5% below parity. However, on the positive side, Valens benefits from an extremely cash-rich balance sheet.

I’ll let you decide if that’s worth taking a risk.

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.

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