Earnings season is in full swing, with results from tech giants and sector leaders influencing the market's direction.

While these updates provide key insights into a company's performance, investors should remember their investment decisions must not be based on a single quarter's results.

Instead, they should consider the recommendations of top Wall Street analysts, who perform an in-depth analysis of a company's fundamentals so they can highlight stocks with solid long-term growth potential.   

Here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Alphabet

The first stock pick for this week is Google parent Alphabet (GOOGL). The company recently reported results for the second quarter, highlighting the strength in its Search and Cloud businesses. However, the growth in YouTube advertising revenue slowed down in the quarter and missed analysts' expectations.

Following the results, BMO Capital analyst Brian Pitz reiterated a buy rating on GOOGL stock with a price target of $222. The stock remains a top pick for BMO.

Pitz noted artificial intelligence-related tail winds in Alphabet's Search business. He said, "The combination of higher query volume and lower incremental costs implies that AI benefits to Search will be a multi-year event."  

Additionally, he raised his 2024 and 2025 estimates for the Cloud business to reflect AI-led gains. Pitz highlighted that the company's AI infrastructure and generative AI solutions for cloud clients have been adopted by over 2 million developers and are already contributing "billions" in revenue.

Despite YouTube's Q2 revenue miss, Pitz continues to be confident about this business. He thinks that YouTube is well-positioned to gain from the expected shift in a significant portion of the $150 billion global linear TV ad dollars to the digital world. He also expects YouTube's superior AI Creator tools to boost its prospects.

Pitz ranks No. 189 among more than 8,900 analysts tracked by TipRanks. His ratings have been successful 74% of the time, with each delivering an average return of 17.1%. (See Alphabet Hedge Fund Trading Activity on TipRanks)

ServiceNow

Next up is ServiceNow (NOW), a cloud-based software company that recently impressed investors with its strong results for the second quarter. The workflow automation platform witnessed better-than-expected net new annual contract value, or NNACV, and generative AI contributions. ServiceNow also raised its 2024 subscription revenue outlook.

In reaction to the strong results and guidance, Goldman Sachs analyst Kash Rangan increased the price target for NOW stock to $940 from $910 and reaffirmed a buy rating.  

Shares surged 13% the day following ServiceNow's quarterly report. The analyst said that the post-results rally in NOW stock was an indication of investors' "renewed conviction in ServiceNow's GTM [go-to-market] execution and the quality and breadth of its platform that is clearly resonating with IT buyers irrespective of choppier macro conditions."

Rangan highlighted that the 22.5% growth at constant currency in ServiceNow's current remaining performance obligation, an indicator of future revenue, was driven by robust NNACV and early renewals.

He thinks that the acceleration in remaining performance obligation to 31% in Q2 2024 indicates the adaptability of NOW's platform across the enterprise. Overall, the analyst is optimistic about the company's ability to sustain a growth rate of more than 20%, backed by continued AI momentum and an accelerating backlog.  

Rangan ranks No. 579 among more than 8,900 analysts tracked by TipRanks. His ratings have been profitable 57% of the time, with each delivering an average return of 8.7%. (See ServiceNow Stock Charts on TipRanks)

Travel + Leisure

This week's third stock is Travel + Leisure (TNL), a membership and leisure travel company. TNL exceeded analysts' earnings expectations for the second quarter but lagged revenue estimates. The company raised its full-year adjusted earnings before interest, taxes, depreciation and amortization guidance to reflect solid consumer demand for vacation ownership or timeshares.

On July 29, Tigress Financial analyst Ivan Feinseth reaffirmed a buy rating on TNL stock and raised his price target to $58 from $54. The analyst's bullish stance is backed by the demand for vacation ownership. Feinseth also expects TNL to benefit from lower interest rates in the second half of this year and additional rate cuts in 2025.

He expects TNL's revenue and cash flows to be driven by "a combination of property development, membership sales, and increases in subscription and resort operating fees" amid strong travel trends.

Feinseth thinks that TNL's strategic partnership with Sports Illustrated Resorts and the launch of the Ultimate Sports-Themed and Active Lifestyle Resort Network are major growth catalysts. He also expects the company to benefit from technology investments, marketing partnerships and acquisitions, including the purchase of Accor Vacation Club.

Feinseth ranks No. 235 among more than 8,900 analysts tracked by TipRanks. His ratings have been successful 60% of the time, with each delivering an average return of 12.8%. (See Travel + Leisure Stock Buybacks on TipRanks)