The introduction of tariffs during the Trump era has stirred worries in the financial world, particularly about potential declines in demand, and fears of a looming recession have sent ripples through the stock market.
In the midst of this turbulence, the decline in some stocks with solid underlying fundamentals could represent a promising chance to invest. Seasoned analysts on Wall Street are identifying some appealing options, with these stocks boasting strong long-term growth trajectories and trading at tempting prices.
Here, we’ve compiled a list of three stocks that top Wall Street analysts are keen on, according to data from TipRanks, a platform assessing analyst performance based on historical results.
### Microsoft
Kicking off this week’s picks is none other than tech titan Microsoft (MSFT). Amidst the current buzz around artificial intelligence, Microsoft’s positioned to gain significantly. This year hasn’t been kind to MSFT, with broader market pressures and less-than-ideal quarterly forecasts contributing to its losses.
Yet, Brent Thill from Jefferies has maintained a buy rating for Microsoft, setting a price target of $550. Thill is optimistic despite the sell-off, seeing the current price as an advantageous point based on a 27-times earnings expectation over the next year. Microsoft, he believes, continues to be a strong contender in their large-cap selection, driven by potential growth in Azure and M365 Commercial Cloud, particularly as AI revenue begins to play a greater role.
Thill also pointed out that Azure is still expanding its market share, outpacing Amazon’s AWS, and showing solid backlog growth fueled by AI, especially when compared to Amazon’s and Google Cloud’s more modest numbers. For M365 Commercial Cloud, the analyst is betting that Copilot will steadily gain traction, becoming a major contributor by fiscal 2026.
Another area Thill highlights is Microsoft’s ability to expand its operating margin despite its significant investment in AI. “Even in the mid-40s, MSFT’s margins are notably higher than those of comparable large caps in the mid-30s,” he remarked.
Looking at cash flow, while projections have dipped by 20% since the end of fiscal 2023, Thill is hopeful for upward revisions for fiscal 2026 as expenses begin to steady and AI-driven revenue boosts earnings.
Thill’s rankings put him at No. 677 among the over 9,400 analysts rated by TipRanks, with a 57% success rate on his ratings, generating an average return of 7.5%. For more details on Microsoft’s ownership structure, check TipRanks.
### Snowflake
Next up is Snowflake (SNOW), a standout in the cloud-based data analytics software arena. Its recent quarterly results beat expectations, and the company’s robust outlook for the year ahead owes much to surging demand fueled by interest in artificial intelligence.
RBC Capital’s Matthew Hedberg holds a resolute buy rating for Snowflake, with a price target of $221. Post-meeting with management, Hedberg feels he better understands Snowflake’s ambition to be the most user-friendly and cost-efficient data platform for AI and machine learning.
After a recent price dip, Hedberg considers Snowflake an appealing option, noting its exceptional team, potential $342 billion market opportunity by 2028, and well-suited platform architecture. He praises its core data warehousing and engineering packages and the strides made in AI/ML products.
Hedberg points to Snowflake’s steady growth—30% at a $3.5 billion scale—with distinct revenue streams and margin improvements making it a standout choice. The CEO’s focus on innovation and refining go-to-market strategies underlines Snowflake’s growth narrative.
Hedberg’s standing is impressive at No. 61 among the 9,400 analysts assessed by TipRanks, with a 64% success rate and delivering an average return of 18.8%. For more from Snowflake’s insider activities, visit TipRanks.
### Netflix
Rounding out our trio is streaming powerhouse Netflix (NFLX), continuing to capture investor interest with its impressive performance metrics and strategic moves. Recently, the company celebrated hitting 300 million paid memberships by the end of 2024.
JPMorgan’s Doug Anmuth remains bullish on Netflix, echoing a buy rating with a $1,150 price target. Anmuth notes Netflix’s strong positioning relative to the broader market this year, reflecting confidence in its 2025 growth prospects, impressive roster of content, and expanding streaming market influence.
Anmuth asserts that “NFLX stands strong against economic challenges,” driven by its platform’s solid engagement and attractive pricing. The addition of a $7.99 ad-tier in the U.S. is expected to open new doors by widening access.
The analyst anticipates Netflix’s 2025 growth to be supported by a steady uptick in subscriber numbers and an increase in average revenue per user, owing to recent price hikes driving substantial revenue from markets like the U.S. and UK.
Furthermore, Netflix’s 2025 lineup holds promise, with anticipated hits like The Residence and returning favorites such as Black Mirror Season 7 set to capture audiences. Anmuth’s expectations include double-digit revenue increases through 2026, coupled with margin expansion and progressive cash flow.
Anmuth is ranked No. 82 among the analysts on TipRanks, with a history of being on the mark 61% of the time and securing an average return of 19.2%. Explore Netflix’s trading activities on TipRanks for more insights.
