Tech giants' earnings results, as well as those of other large names, are influencing the stock market.
However, a hit or a miss in a single quarter shouldn't form the basis for a long-term investment thesis.
Top Wall Street analysts closely follow the key details of a company's quarterly results. However, they establish their recommendations based on that company's ability to navigate short-term headwinds and deliver attractive returns over the long term through strong execution.
Bearing that in mind, here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
This week's first stock pick is financial services technology company Fiserv (FI). The company recently impressed investors with its upbeat third-quarter results, with adjusted earnings per share rising 17% year-over-year on organic revenue growth of 15%.
On Oct. 29, Tigress Financial analyst Ivan Feinseth boosted his price target for FI stock to $244 from $190 and reiterated a buy rating. The analyst expects the company to continue to gain from the ongoing transition to digital payments and growing adoption of digital transaction solutions.
Feinseth noted the robust Q3 revenue growth, fueled by Fiserv's integrated financial services solutions and solid customer relationships. He stated that the company is expanding its customer base and grabbing market share, thanks to the scalability of its financial product distribution platform and continued innovation.
The analyst also highlighted Fiserv's other strategic initiatives, such as expanding its Clover portfolio, offering services to enterprise merchants, extending more real-time payments, expanding into new verticals and markets, as well as partnering with major clients.
Feinseth ranks No. 183 among more than 9,100 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 13.8%.
We now move to Boot Barn (BOOT), a retailer of western and work-related footwear, apparel and accessories. The company reported better-than-expected results for the second quarter of fiscal 2025. Also, Boot Barn raised its full-year guidance.
Despite the beat-and-raise quarter, BOOT stock plunged as investors reacted unfavorably to the company's announcement about the planned departure of CEO Jim Conroy in November. Conroy will assume the role of CEO at off-price retailer Ross Stores.
Following the print, Baird analyst Jonathan Komp upgraded his rating for Boot Barn stock to buy from hold, while maintaining the price target at $167. The analyst thinks that the post-earnings pullback in the stock offers a more compelling risk/reward setup. He is surprised by the market's reaction to the CEO's departure, given the strength of the remaining management team.
Komp highlighted that Boot Barn is on track to maintain more than 15% annual growth in its store count for the third consecutive year in fiscal 2025 with its plan to open 60 new stores. He also noted the robust momentum in the company's comparable store sales across all regions and categories.
"We remain confident in BOOT's ability to deliver attractive relative earnings growth supported by compelling unit expansion opportunity," said Komp.
Komp ranks No. 424 among more than 9,100 analysts tracked by TipRanks. His ratings have been profitable 54% of the time, delivering an average return of 13.5%.
Finally, let's look at this week's third stock, restaurant chain Chipotle (CMG). The company recently reported better-than-anticipated adjusted earnings for the third quarter but lagged sales expectations despite a 3.3% rise in traffic amid a tough business backdrop.
Following the mixed results, Stifel analyst Chris O'Cull reaffirmed a buy rating on CMG stock with a price target of $70. The analyst noted that Chipotle's comparable restaurant sales growth of 6% was almost in line with the Wall Street's mean estimate of 6.2%. He added that the company experienced accelerated transaction growth in September and into the fourth quarter, indicating Q4 comps estimate of about 5.5%.
O'Cull added that the Q4 comps expectations imply full-year comps in the 7.5% range. In particular, he expects Chipotle's Q4 top line to gain from the company's smoked brisket offering, which has fueled incremental transactions and spending by existing customers and helped win new customers.
The analyst highlighted the company's focus on enhancing its throughput, an indicator of how fast a restaurant can execute an order. He noted Chipotle's aim to drive its throughput back into the mid-30s (serving over 30 entrées per 15 minutes) range from the mid-20s today. The analyst thinks that the company can improve its throughput, given its multiple initiatives, including equipment upgrades, enhanced operational procedures and transformational technology.
O'Cull ranks No. 415 among more than 9,100 analysts tracked by TipRanks. His ratings have been successful 59% of the time, delivering an average return of 12.6%.
