Top Wall Street analysts are bullish on these five stocks

The second half has started well and the income is increasing.

Investors who follow the stock can gather valuable insights from top stock picks from Wall Street experts, which can help them make informed decisions as they seek strong long-term returns.

Here are five stocks for investors to consider, according to top Wall Street pros on TipRanks, a platform that ranks analysts based on past performance.

First on this week’s list is the Mediterranean restaurant chain How are you (HOW ARE YOU), which made a successful public debut last month. The rally in CAVA shares since its IPO reflects investor optimism about the fast-casual restaurant chain’s growth prospects. Cava has expanded to 263 locations since opening its first restaurant in 2011.

Stifel Analyst Chris O’Cul issued a buy quote on Cava with a price target of $48. The analyst sees solid growth potential, given the company’s plans to expand to at least 1,000 restaurants in the United States by 2032. Cava’s expansion plans include a foray into new markets in the Midwest region next year.

O’Cull expects the company’s growth plans to be supported by a healthy balance sheet. He noted that following the IPO, Cava had approximately $340 million in cash and no funded debt. The analyst estimates 20% annual revenue growth over the next four years, driven by at least 15% growth in Cava’s footprint. He expects adjusted earnings before interest, taxes, depreciation and amortization to nearly double to $112 million in 2026 from $58 million this year and the company will generate positive free cash flow from 2026.

“In our view, the stock’s premium valuation can be justified by its growth opportunity in AUV (average unit volume) and unit count and the potential for strong operating momentum to drive revisions. to the upside in near-term estimates and long-term earnings potential,” O’Cul said.

O’Cull is ranked 349th among more than 8,400 analysts tracked by TipRanks. Its ratings were profitable 62% of the time, with each rating offering an average return of 12.3%. (See CAVA technical analysis on TipRanks)

The tech giant Apple (AAPL) is known for its innovative products, including the iPhone and iPad. That said, the company’s higher-margin services segment has grown rapidly over the past few years and has improved the company’s revenue and profitability.

Evercore ISI Analyst Amit Darianani, which ranks 258th out of more than 8,400 analysts tracked on TipRanks, recently revealed the results of its company’s annual Apple Services Survey. The survey indicated that Apple services continue to see increased adoption across the board. In particular, Apple Pay, Music and TV+ saw the most notable increases in adoption compared to last year’s survey.

The survey found that the average revenue per user (ARPU) for the services in the United States is $110, which is well above Daryanani’s overall estimate of $81. The analyst argues that ARPU growth is the main driver for the Services business, as smartphone penetration has likely skyrocketed.

“We continue to view Apple Services as well positioned to sustain double-digit growth through FY27 and beyond, driven by increased ARPU associated with new product launches,” said Daryanani.

Daryanani reiterated a buy rating on AAPL with a price target of $210. He has a success rate of 60% and each of his grades has yielded 11.5% on average. (See AAPL Insider Trading Activity on TipRanks)

Next on our list is the social media giant Meta (META), which recently thrown threadsa Twitter-defying social media app.

Analyst at Tigress Financial Partners Ivan Feinseth thinks Thread’s launch came at the right time to capitalize on Twitter’s declining popularity. He said the introduction of Threads has created an additional growth catalyst that could further boost Instagram’s engagement.

Feinseth also expects Meta’s ongoing investment and integration into artificial intelligence to continue to improve engagement and ad revenue across all of its apps. The analyst pointed out that Meta’s strong balance sheet and cash flow are helping to support its growth initiatives, including investment in the Metaverse, strategic acquisitions and share buybacks.

Feinseth reiterated a buy quote on Meta and raised the price target to $380 from $285. The analyst said, “Increased AI integration, better cost management and increased operational efficiency will lead to a re-acceleration in business performance trends.”

Feinseth ranks 205th out of more than 8,400 analysts on TipRanks. Sixty percent of its odds were profitable, with an average return of 12.8%. (See Opinions and feelings of meta-bloggers on TipRanks)

Semiconductor giant Nvidia (NVDA) is seen as a major beneficiary of the growing interest in generative AI, which is fueling huge demand for its GPU chips.

Goldman Sachs analyst Toshiya Hari noted that Nvidia has already benefited from the traditional AI boom for a decade, as evidenced by its data center segment’s revenue surge from $129 million in fiscal year 2013 to $15 billion in 2013. fiscal year 2023. The analyst raised his revenue and earnings estimates for Nvidia as he believes the company has entered a new phase of AI-powered generative growth.

Hari predicts that demand for Nvidia products in training generative AI models will represent a cumulative revenue opportunity of approximately $85 billion (base case) in calendar years 2023 through 2025. (See Nvidia Financials on TipRanks)

Meanwhile, he felt that inference (includes key applications that could benefit from generative AI like search, enterprise productivity tools, e-commerce, email and social media) could represent a revenue opportunity of nearly $7.7 billion from 2023 to 2025, including $4.5 billion in 2025.

Hari raised his price target for Nvidia shares to $495 from $440 and reiterated a buy note. He continues to see “significant lead ahead of the company based on its strong competitive position in what is a rapidly growing (but nascent) AI semiconductor market.”

Hari ranks 171st out of more than 8,400 analysts on TipRanks. Additionally, 63% of its ratings were profitable, with an average return of 19.1%.

American foods (USFD) distributes fresh, frozen and dry food, as well as non-food items, to foodservice customers.

Recently, analyst BTIG Pierre Saleh reiterated a buy rating on the USFD with a price target of $48, saying, “US Foods is one of the best self-help stories in our coverage, the majority of the growth in the EBITDA dependent on operational improvements that management has diligently implemented over the past year.”

After an exceptional gross profit margin in the first quarter, Saleh raised its second quarter gross margin estimate by 20 basis points to reflect increased private label penetration, rationalization of stock keeping units (SKUs), reduction in waste and improving labor retention.

The analyst also raised its second-quarter EBITDA estimate and expressed confidence in US Foods’ ability to exceed expectations, citing the company’s strategic initiatives, steady industry sales and track record. of exceeding Wall Street’s EBITDA projections in recent quarters.

Saleh is ranked 325th among more than 8,400 analysts tracked on TipRanks. Its ratings were profitable 64% of the time, each offering an average return of 12.7%. (See US food stock chart on TipRanks)