With everyone looking ahead now to 2018, investors are getting bombarded with ideas regarding the best stocks to buy.
Everyone has their own suggestion about which stocks are going to hit the big time in the coming months, but fear not! Here we have a list of 3 sure-fire winners that tick all the boxes: Facebook Inc (NASDAQ:FB), Amazon.com, Inc.(NASDAQ:AMZN) and Micron Technology, Inc. (NASDAQ:MU).
These stocks to buy are not purely subjective. Instead, they have big support from the Street’s top analysts and the upside potential to match based on the average analyst price target.
I found these stocks using a nifty Top Analyst Stocks tool on TipRanks. This pulls up stocks with bullish recent ratings from multiple top analysts. Scanning through this list, I was able to identify 3 top stocks that make compelling investing opportunities right now. Just to note, I purposefully eliminated stocks that only have big upside potential because share prices are plummeting.
With that in mind, let’s dive in and see which stocks make the cut for 2018:
Social media giant Facebook has a big catalyst heading its way for 2018. The company has already premiered its ‘Watch’ tab, but 2018 could be the year where it really takes off. (Of course, this is on top of all the stock’s other catalysts like Instagram, WhatsApp and a new Direct messaging app.)
One of TipRanks’ top 100 analysts, Brent Thill, believes the ‘Watch’ tab is about to make a sizeable impact on user video consumption. He says the tab will drive video engagement alongside improved network effects and sharing. Plus, Facebook’s data-driven approach to content and partner revenue share agreements is the smart way to go. He is now looking for revenue purely from the Watch tab to hit $12 billion in 2022. Thrill’s $225 price target suggests considerable upside of 27% from the current share price.
Strong Buy stock FB has scored 30 buy ratings and just 1 sell rating in the last three months. Meanwhile, the average analyst price target of $210 indicates 19% upside potential.
Year-to-date Amazon has already soared by 56%. But even with shares at $1,176, we can see that the Street still sees AMZN spiking over 11% to $1,311. In fact, in the last three months this stock has received an eyebrow-raising 33 buy ratings vs. just one hold rating.
The most recent rating comes from top RBC Capital analyst Mark Mahaney. He has just carried out a survey on Amazon’s intelligent personal assistant Alexa. And he likes what he sees. “Following our third annual Alexa survey, we are more impressed with the traction of these devices and more convinced of their potential long-term impact. With tens of millions of users and 20K+ skills, we see Alexa’s value prop as becoming increasingly powerful as awareness and ownership ramp. We think AMZN could see $10-$11B in Alexa-related Rev by 2020.”
In fact, recent reports suggest Alexa made a popular holiday gift. On Christmas Day, Amazon’s Alexa app took the No. 1 spots on both the U.S. Google Play and iPhone App Stores’ free app charts.
Micron Technology, Inc.
Over the last three months, semiconductor stock Micron has received a whopping 19 buy ratings and just 3 hold ratings. As a result, the stock has a ‘Strong Buy’ analyst consensus rating. These analysts believe (on average) that Micron has big upside potential of over 30% from the current share price. This would take MU from $44.12 all the way to $57.65. Bear in mind, MU has already doubled year-to-date!
Five-star Rajvindra Gill assigned a buy rating to MU with a very confident $76 price target on Dec. 20 (72% upside). He says the market is undervaluing MU and he sees serious potential in: 1) 3D NAND transition, which generates a significant cost advantage (30%-35%); and 2) technology limitations in DRAM supply growth.
“We believe investors are focusing too heavily on a NAND pricing decline to see the big picture. With another record quarter and guide (beat revenue and EPS consensus by 5.6% and 11.4%, respectively) in the bag, Micron is on track to generate quarterly EPS of nearly $2.50 or roughly $10 per share of annualized earnings” said Gill on Dec. 20.
Note that this is a top analyst worth following. He is ranked No. 43 out of over 4,700 analysts tracked by TipRanks.