Stocks To Buy

Wall Street Favorites: 7 Stocks With Strong Buy Ratings for May 2024 

If you’re on the hunt for stocks to buy this month, look no further. We’re close to the end of first-quarter 2024 earnings season, with 92% of S&P 500 companies having reported results. While the overall earnings season has been strong, there are certain stocks that have emerged as favorites among Wall Street analysts. The consensus surrounding some companies and their stocks has strengthened following strong Q1 prints and bullish guidance.

Going forward, stocks that have been given top ratings and aspirational price targets on Wall Street can be expected to outperform the broader market, providing big gains to shareholders. As such, investors would be well-advised to pay attention to analyst ratings as they provide direction on the likely future moves of stocks. Here are Wall Street favorites: seven stocks with strong buy ratings for May 2024.

Stocks to Buy: Meta Platforms (META)

Meta Platforms (NASDAQ:META) has been in investor jail ever since the social media giant issued disappointing forward guidance as part of its Q1 earnings report. But analysts still love the stock. The 41 professionals covering the company rate META stock a strong buy and have a median price target on the shares of $522.49. That’s 11% higher than the current share price. Analysts agree that the Q1 print and outlook were both pretty good.

At best the guidance provided by Meta Platforms was conservative. And it shouldn’t take away from the fact that the company crushed its Q1 print. Meta reported EPS of $4.71 versus $4.32 that was expected among analysts. Earnings more than doubled from $2.20 per share a year earlier. Revenue in Q1 totaled $36.46 billion compared to $36.16 billion expected on Wall Street. Sales saw their fastest rate of expansion since 2021.

While META stock is down about 10% since its Q1 print was delivered, the company’s share price has nearly doubled (up 97%) in the last 12 months.

Uber Technologies (UBER)

Uber Technologies (NYSE:UBER) is a company that reported truly disappointing Q1 numbers, sending its stock down 8% as a result. Yet analyst continue to rate UBER stock a strong buy. The median price target on shares of the ride hailing and delivery company is $89.21, implying 37% upside from current levels. Wall Street analysts continue to believe in the company and the growth opportunity before it.

For Q1, Uber reported a loss of 32 cents per share on revenue of $10.13 billion. Analysts were expecting a profit of 22 cents a share and sales of $10.10 billion. The company blamed the poor results on losses related to the “revaluation of equity investments.” There were some bright spots in the print. Gross bookings increased 20% from the previous year, while revenue in the mobility segment increased 30% year-over-year (YOY).

Uber recently announced a new partnership with the grocery delivery app Instacart (NASDAQ:CART) that it says could benefit its delivery business going forward. Despite the recent dip, UBER stock has gained 71% in the past 12 months.

Stocks to Buy: Walt Disney Co. (DIS)

Walt Disney Co. (NYSE:DIS) is back in the good graces of analysts as it controls costs and profitably grows its streaming service. A total of 24 analysts have a consensus strong buy rating on DIS stock with a median price target of $133.55, which is 27% higher than where the shares are currently changing hands. Disney’s recent Q1 print showed that the Mouse House is continuing to reduce losses at its streaming services.

Disney said that its operating income rose 17% as its Disney+ and Hulu streaming services turned a profit in the quarter for the first time. When combined with ESPN+, the streaming business lost $18 million during the quarter. But that was much better than a loss of $659 million a year earlier. Disney+ subscribers grew by more than six million in the quarter to 117.6 million global customers.

While still well below its all-time highs, DIS stock has gained 16% so far this year.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) stock is rated a strong buy among 33 analysts who track the company’s progress. Analysts continue to like the opportunity AMD has in the market for artificial intelligence (AI) microchips, and have a median price target on the company’s shares of $192.40, which is 26% higher than where the stock is trading now. With its recent Q1 earnings, AMD ratcheted up its forecast for AI microchip sales this year.

The company now expects to sell $4 billion worth of AI chips in 2024, up from a previous estimate of $3.5 billion forecast in January of this year. AMD said revenue at its Data Center unit grew 80% YOY to $2.3 billion due to robust sales of its latest MI300 series AI chips. The company said it has sold more than $1 billion of the AI chips since they launched about six months ago.

On their earnings call, management said that the company is working on new AI chips and successors to the current generation of processors. AMD stock is up 10% so far in 2024.

Stocks to Buy: GE Aerospace (GE)

GE Aerospace (NYSE:GE) is a fairly new company after a massive reorganization and divestment. However, analysts like what they see so far from the industrial conglomerate. Sixteen analysts rate GE stock a strong buy with a median price target of $179.13. The price target implies 12% growth over the next year. Most of the price targets have come after GE Aerospace, which specializes in aircraft engines, reported a Q1 profit that beat estimates and raised its forward guidance.

GE Aerospace reported EPS of 82 cents, which beat consensus estimates of 65 cents. Revenue in Q1 totaled $15.2 billion, which was slightly below Wall Street estimates of $15.3 billion. However, GE raised its forward guidance and announced that it is increasing its quarterly dividend payment by a whopping 250%. This after General Electric hived off both its energy and healthcare businesses into separate public companies.

GE stock has increased 60% on the year.

Amazon (AMZN)

E-commerce giant Amazon (NASDAQ:AMZN) is a top pick among analysts. A total of 41 Wall Street professionals give the stock a consensus strong buy rating with a median price target of $220.00 per share. The price target is 18% higher than current levels. Analysts praise Amazon for its cost controls as well as the growth we’re seeing in online advertising and cloud computing.

With its Q1 financial results, Amazon noted that Amazon Web Services (AWS), its cloud computing unit, now accounts for 62% of the company’s total operating profit. Advertising sales surged 24% during the quarter from a year earlier. The ad business grew faster in Q1 than either retail sales or cloud computing, and is an important profit driver for Amazon.

On an earnings call with analysts and media, Amazon executives said that demand for generative AI should bolster the company’s cloud computing business going forward. AMZN stock is up 25% year-to-date.

Riot Platforms (RIOT)

Cryptocurrency miner Riot Platforms (NASDAQ:RIOT) has a strong buy rating and a median price target of $18.72, which is nearly double (91% higher) then where shares are at currently. Despite a downturn in crypto prices, analysts seem to like the outlook for Riot Platforms, especially as the latest Bitcoin (BTC-USD) halving event is now behind us and as a raft of new spot Bitcoin exchange-traded funds (ETFs) grow in popularity.

In the lead up to the halving event, which is when the supply of Bitcoin is cut by 50%, RIOT stock fell as much as 40%. The stock has recovered some in recent weeks but is still down 36% on the year. Analysts expect a big recovery in Riot Platforms stock in coming months. There is also expected to be consolidation among crypto miners as the available supply of BTC dwindles, and Riot Platforms is seen as well-positioned to come out on top.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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