As January came to a close, investors faced a whirlwind of market activity, grappling with the Federal Reserve’s decision to halt rate cuts, a hectic earnings season, and the looming possibility of new tariffs. Given these factors and the stock market’s fluctuations, selecting the right stocks for their portfolios can be quite challenging for investors. Relying on the expertise and recommendations of top analysts may offer valuable insight, as these professionals are adept at seeing beyond short-term market noise to identify companies with strong long-term growth potential.
With that perspective, let’s explore three stocks that are receiving acclaim from some of Wall Street’s leading analysts, based on insights from TipRanks, a platform known for evaluating analysts based on their performance histories.
Netflix
First up is the streaming behemoth, Netflix (NFLX). The company recently delighted investors by exceeding expectations for the fourth quarter of 2024, adding approximately 19 million new subscribers.
Following these impressive results, Doug Anmuth, an analyst at JPMorgan, reaffirmed his buy rating on Netflix stock and raised the price target from $1,000 to $1,150. Anmuth noted, "Netflix enters the new year firing on all cylinders."
He highlighted Netflix’s success stemming from a robust content lineup. Major releases like the Jake Paul vs. Mike Tyson fight, the Christmas Day NFL games, and the second season of "Squid Game" were notable, although their impact on subscriber growth was limited. Instead, broad content strength fueled substantial subscriber additions.
Additionally, Netflix is experiencing increased engagement per household and strong retention rates. Regarding the company’s decision to increase prices, Anmuth anticipated minimal resistance in the U.S. and select other markets, given the high-quality content offered. Looking ahead, he believes Netflix’s narrative will increasingly shift towards advertising, as the company gears up for several new initiatives.
Anmuth remains optimistic about Netflix, citing double-digit revenue growth predictions for 2025 and 2026, anticipated operating margin improvements, and a dominant position in the streaming industry. He now projects 30 million net subscriber additions in 2025, up from a previous estimate of 21 million. Moreover, he increased his revenue forecasts for 2025 and 2026 by 4% and bumped up his operating profit estimates for both years by 13%.
Ranked 80th among over 9,300 analysts monitored by TipRanks, Anmuth’s ratings have been profitable 63% of the time, yielding an average return of 20%. For more on Netflix’s activities in hedge funds, check out TipRanks.
Intuitive Surgical
Next on our list is Intuitive Surgical (ISRG), a leader in robotic-assisted surgeries and the creator of the renowned da Vinci surgical systems. The company wrapped up 2024 with strong earnings that surpassed market expectations, although its 2025 gross margin guidance raised concerns by indicating a decline from 2024.
Robbie Marcus from JPMorgan reacted to the earnings by maintaining a buy rating on ISRG stock, boosting the price target from $575 to $675. Marcus praised the company’s encouraging profitability metrics, attributing its revenue success to substantial placement of systems and procedural growth.
He highlighted that Intuitive Surgical placed 174 da Vinci 5 systems in the fourth quarter of 2024, significantly surpassing JPMorgan’s projection of 125. "With strong momentum from dv5 heading into 2025 and a setup for another year of beat-and-raise quarters, we remain bullish on Intuitive and reiterate our Top Large Cap Pick," Marcus noted.
Discussing the outlook for 2025, Marcus acknowledged that Intuitive Surgical’s gross margin guidance of 67% to 68% slightly missed JPMorgan’s and the Street’s estimates of approximately 68.5%. While this sparked some concerns, Marcus viewed the guidance as conservative, anticipating a possible upside as seen in 2024. He pointed out that the 2024 initial gross margin forecast initially ranged from 67% to 68%, but ended the year strongly at nearly 69%.
Marcus views Intuitive Surgical as well-poised in the swiftly expanding, underdeveloped soft-tissue robotics sector. He anticipates that launching new systems and gaining approval for existing systems in new procedures will drive future growth.
Ranked 683rd among over 9,300 analysts tracked by TipRanks, Marcus’s ratings have been profitable 56% of the time, delivering an average return of 11.2%. Discover the ownership structure of Intuitive Surgical on TipRanks.
Twilio
Finally, let’s dive into Twilio (TWLO), a pivotal player in the cloud communications space. Goldman Sachs analyst Kash Rangan upgraded his rating on TWLO stock from hold to buy, concurrently raising the price target from $77 to $185, following the company’s analyst day event and in anticipation of its fourth-quarter results in February.
Rangan explained, "Following multiple years of growth compression and several strategic actions, we believe Twilio is now hitting an inflection point both in terms of narrative and fundamentals."
Moreover, Rangan forecasts solid free cash flow generation, spurred by Twilio’s aggressive cost-cutting and efficiency strategies. He emphasized that Twilio’s analyst day bolstered his positive outlook due to accelerated product development and an enhanced go-to-market approach.
The analyst believes that improvements to Twilio’s Communications portfolio can strengthen its leading role in the core CPaaS (communications platform as a Service) market. After strong Q3 results, Rangan sees significant upside for TWLO stock, driven by strategic initiatives undertaken in the last two years.
Additionally, Rangan foresees potential growth beyond 2025 revenue projections, propelled by rising communication usage trends and new product cross-selling opportunities, supported by core platform enhancements and generative AI innovations.
Ranked 345th among over 9,300 analysts monitored by TipRanks, Rangan’s ratings have been successful 61% of the time, providing an average return of 11.4%. Explore Twilio’s stock charts on TipRanks for more insights.
