Investors were spooked by a hotter-than-expected consumer inflation reading last week, but taking a long-term mindset when seeking buying opportunities could be beneficial. Top Wall Street analysts have highlighted their favorite stocks with a focus on long-term growth prospects, and one of the top picks is e-commerce and cloud computing giant Amazon (AMZN).
Mizuho analyst James Lee reiterated a buy rating on AMZN stock with a price target of $230, expressing optimism about the revenue growth of Amazon’s cloud computing unit, Amazon Web Services (AWS), in 2024. A recently completed quarterly AWS customer survey with a leading channel partner indicated signs of an accelerating sales cycle and an increased migration of workloads into the cloud. Lee’s successful track record and bullish views make Amazon a noteworthy choice for long-term growth potential.
Acushnet Holdings (GOLF)
Another stock favored by the Street’s top pros is Acushnet Holdings (GOLF), a golf products maker that saw net sales of $2.4 billion in 2023, reflecting a 4.9% year-over-year growth. Tigress Financial analyst Ivan Feinseth reaffirmed a buy rating on GOLF stock and raised the price target to $74, citing opportunities from new players entering the sport and a rise in rounds played. The company’s stellar brands, including FootJoy and Titleist, contribute to its premium market valuation and offer strong potential for shareholder returns through dividends and share repurchases.
Feinseth’s bullish outlook on Acushnet is supported by the increasing number of new golfers and total rounds played in the industry, signaling a positive trajectory for the business. The company’s strategic initiatives, such as quarterly dividend increases and share repurchase authorizations, underscore its commitment to rewarding shareholders and driving long-term growth.
BJ’s Wholesale Club (BJ)
Lastly, BJ’s Wholesale Club (BJ), a membership-only warehouse club chain, presents an attractive investment opportunity according to Goldman Sachs analyst Kate McShane. McShane upgraded BJ stock to buy from hold and raised the price target to $87, expecting strong revenue growth driven by increased market share and improving industry trends. With a focus on the grocery and general merchandise categories, BJ is positioned to benefit from enhanced customer engagement, new brand additions, and potential membership fee increases.
McShane’s bullish stance on BJ reflects the company’s compelling value proposition, long runway for new club growth, and market share gains over the long term. BJ’s membership base of more than 7 million accounts and high renewal rate further support its growth potential and investment attractiveness.
Adopting a long-term perspective when evaluating investment opportunities allows investors to capitalize on the growth prospects of companies like Amazon, Acushnet Holdings, and BJ’s Wholesale Club. The bullish views of top Wall Street analysts on these stocks underscore their potential for long-term value creation and shareholder returns, making them compelling choices for investors seeking sustainable growth in their portfolios.