Harriet Lefton

About the Author Harriet Lefton

Harriet originates from the UK where she worked as a journalist specializing in the metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer.

2 Top-Ranked Stocks to Buy This Holiday Season: Apple Inc. (AAPL) and Amazon.com, Inc. (AMZN)

Wall Street's top analysts are narrowing their top stocks for the holiday season.

TipRanks has identified top analysts and the two stocks they prefer this holiday season are Apple Inc.(NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN).

TipRanks uses a natural language processing algorithm to rank analysts based on two factors:

  • Average return of buy-sell recommendations
  • Success rate of buy-sell recommendations

Let’s take a closer look at the two stock giants the top-ranked analysts say are well worth tracking this holiday season:

Apple Inc

On the back of Apple’s iPhone X launch, top Canaccord analyst Michael Walkley is very bullish about this holiday season. Walkley reveals that his recent “survey work” suggests strong holiday sales for Apple, especially if iPhone X supply improves for the 256GB models. He reiterated his buy rating on the stock with a $195 price target (13 percent upside potential) on Nov. 20.

“Following solid September quarter iPhone sales consistent with seasonal trends, we estimate Apple captured 72 percent of industry profits, up from 68 percent in the June quarter, and we anticipate much stronger share during the lucrative December quarter. We believe strong sales and mix of the iPhone X will sustain strong gross margin dollars given the high price points and likely improving manufacturing efficiencies,” says Walkley. He sees the iPhone installed user base as exceeding an impressive 635 million exiting 2017.

Apple has scored 23 buy ratings and six hold ratings in the last three months. At $188, the average analyst price target indicates upside potential of close to 10 percent. Interestingly, the individual price targets vary considerably from just $152 on the low to $235 on the high.

Amazon.com, Inc.

E-commerce giant Amazon is already raking in the holiday sales. The company accounted for 45 to 50 percent of online sales during Black Friday, according to GBH Insights. In just 24 hours, Amazon made sales of over $1 billion. Amazon also revealed that orders made from mobile devices on Thanksgiving were up 50 percent compared with this time last year.

Top Wells Fargo analyst Ken Sena just raised his Amazon price target to $1,525 from $1,430. His new price target — the Street’s highest yet — is 30 percent above the current share price. In his Dec. 1 report, Sena highlights Amazon’s “record-breaking” early holiday sales data as a key reason to be bullish on the stock.

Overall, this strong buy stock has one of the best outlooks on the Street. In the last three months, top analysts published 29 buy ratings and just one hold rating. These analysts have an average price target on the stock of $1,277, which is about 10 percent higher than the current share price.