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Wall Street's Top Analysts Are Bullish on These Five Stocks Amid the Market's Turbulence

Terray Sylvester | Reuters

February started on a dramatic note as Big Tech companies, including Meta Platforms and Amazon, issued quarterly earnings and swayed the major averages. 

Though the near-term turbulence is enough to rattle most investors, it takes a long-term perspective to look through the dramatic swings in share prices. To that effect, top analysts are highlighting the companies they believe have long-term potential, according to TipRanks, which tracks the best-performing stock pickers.

Here are five stocks Wall Street analysts find compelling.

Marathon Digital

Tumult in tech shares isn't the only thing giving investors indigestion. Bitcoin and other cryptocurrency have experienced sharp moves – and shares of the companies that mine the flagship crypto have also suffered.

One company is starting to look like an attractive purchase, according to Jonathan Petersen of Jefferies: Marathon Digital Holdings (MARA). Marathon's strong ties to bitcoin's spot price has subjected its shares to volatility. However, instead of stepping back, the company has invested in even more mining infrastructure and is currently on track to control the largest market share of its industry. (See Marathon Digital Insider Trading Activity on TipRanks) 

Petersen expects this milestone to materialize this year. He calculates that Marathon Digital holds about 1.9% of the total mining market, and he anticipates this number to rise above 5% once its new hardware is deployed.  

After calculating MARA's potential for growth, the analyst views "the miners as a better investment than BTC." 

Petersen rated the stock a buy and assigned a price target of $51.  

The analyst noted that MARA has made more deposits for its miners than any of its competition. Additionally, the firm has been using third-party data centers to ramp up its deployment processes. Petersen wrote that "MARA's strategy for future growth of using data center hosting providers sets the company apart from some of its largest peers."  

This method provides for lower operating costs in the near-term, but it may pose as an issue years down the line when margins shrink after bitcoin's 2024 halving. A bitcoin halving event cuts in half the reward for mining the cryptocurrency, and it cuts the rate at which new bitcoins go into circulation. It happens about every four years.

Out of more than 7,000 analysts, Petersen is rated as No. 290. His success rate stands at an impressive 72% and has returned an average of 20.8% on his stock picks.  

Roblox

Another name which has come down considerably from its November highs is Roblox (RBLX), which was dragged into tech and growth's downfall over the last two months. The stock had benefited handsomely from Meta Platform's (FB) pivot toward the metaverse, and it appears its share price was no longer sustainable.  

Despite the rotation, the video game developer is still expected to play a strong part in nascent metaverse opportunities. The stock has fallen more than 50% from its mid-November peak. (See Roblox Stock Charts on TipRanks) 

Drew Crum of Stifel noted that Roblox has "demonstrated both annual and sequential gains." He said the firm has ranked as third globally against other popular gaming platforms in December 2021.  

Crum rated the stock a buy and denoted a price target of $110.  

The analyst was encouraged by RBLX's progress in regard to its relevance among its peers across both iOS and Xbox systems, as well as its robust organic growth in bookings revenues.  

Crum believes that "Roblox represents a compelling play on the convergence of content and social, two 'viral loops' that provide a mutually reinforcing network effect, and together should drive high engagement, and hence monetization across its platform." 

On TipRanks, Crum maintains a ranking of No. 121 out of over 7,000 financial analysts. When picking stocks, he has been correct 69% of the time and has returned an average of 39.3% on his ratings.  

Boeing

Boeing (BA) has been plagued by its 737 Max saga, a story which saw its new aircraft grounded across the globe. However, many countries have since recertified it, and Boeing has begun to see new orders come in for other aircraft.  

Ken Herbert of RBC Capital Markets noted that most recently Qatar Airways placed an order for 34 new 777X cargo aircraft, with an option for 16 more. (See Boeing Risk Factors on TipRanks) 

Herbert rated the stock a buy and calculated a price target of $265 per share.  

Regarding a possible industrywide rebound, the analyst noted that he expects "continued strength in order activity to support a positive view of the aerospace fundamentals." Moreover, as consumer spending trends continue to boost e-commerce activity and shipping costs remain elevated, airlines are shifting focus to cargo operations.  

This strategy comes as leisure and corporate travel have sustained persisting impacts, and airlines have been sent looking to offset losses. Additionally, the new fuel-efficient 777X cargo jets are particularly attractive at a time when oil commodity prices remain at sky-high levels.  

TipRanks calculates Herbert at No. 214 out of more than 7,000 professional analysts. He has been successful picking stocks 64% of the time and has returned an average of 27.3% on each of them.  

Advanced Micro Devices

Chipmaker Advanced Micro Devices (AMD) just beat Wall Street consensus estimates on its earnings report and provided a "spectacular March guidance," according to Christopher Rolland of Susquehanna. (See Advanced Micro Devices Earnings Data on TipRanks) 

The analyst rated the stock a buy and raised his price target to $180 from $175.  

Explaining that AMD has strength across all of its businesses, Rolland remained bullish on the company's outlook. He noted that robust shipments were observed in its DC GPU segment, and its Enterprise, Embedded, and Semi-Custom (EESC) segment saw profitability soar. The latter outperformed tremendously, with fourth-quarter profits nearly doubling what was generated in all of 2020.  

Rolland added that the acquisition of Xilinx, a programmable logic semiconductor firm, is expected to close over the next two weeks. AMD is also in the process of ramping up production of its Milan-X processor, with its Genoa and Bergamo chips anticipated to aid its product cycle by the second half of the year.  

Rolland concluded by mentioning that AMD has repurchased about $1 billion in stock and that "we recommend investors do the same."  

Out of more than 7,000 expert analysts, TipRanks maintains Rolland at No. 4. His stock ratings have turned correct 86% of the time and have averaged returns of 53.4%.  

Block

Block's (SQ) valuation skyrocketed as consumers gravitated toward using contactless and app-based payment systems. However, with trends decelerating over the last quarter coupled with a sell-off in tech and growth, SQ shares are down about 62% from their high last August.

The fintech "super-app" company recently closed its acquisition of "buy now, pay later" firm Afterpay, and Tien-Tsin Huang of JPMorgan is bullish on the possibilities. He is confident the company's integration will be put to use monetizing and boosting gross profits, and it fits neatly in between Block's seller and Cash App ecosystems.  

Huang rated the stock a buy and assigned a price target of $200.  

The analyst said the stock is currently trading at an attractive discount in relation to its super-app peers, especially when considering its "large and untapped addressable market, unique growth characteristics, and an equally unique mission and corporate culture," which all justify his rating. (See Block Website Traffic on TipRanks) 

Huang is bullish on Afterpay's capacities, stating that allowing sellers to offer payment installments to their customers is "just the beginning." He expects the two-sided network to accelerate Cash App's engagement, user acquisition on Cash Card, and Block's international presence overall.  

Huang is ranked as No. 238 out of over 7,000 financial analysts in TipRanks' database. Of his stock picks, 66% of them have been successful, and they have returned him an average of 31.8% per.  

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