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Wall Street Favorites: 3 Growth Stocks With Strong Buy Ratings for January 2024

Wall Street analysts spend their entire careers analyzing stocks and determining which equities have potential. Detailed research from these analysts can help investors save time and generate good returns from their portfolios. Analysts are currently raving for these growth stocks with “Strong Buy” ratings.

While an investor’s research shouldn’t start and conclude based on an analyst’s words, using analyst recommendations can help you discover new investment ideas. You may also gain a better perspective about what makes a particular stock appealing or unappealing.

These growth stocks have become popular among Wall Street analysts and may be good fits for some investors.

Alphabet (GOOG, GOOGL)

Source: Tero Vesalainen / Shutterstock.com

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has carved a dominant position for itself in the search engine industry. Consumers flock to Google and YouTube to get their questions answered. 

Alphabet’s main profit engine is its advertising segment, but Google Cloud has meaningfully added to the company’s total returns. Alphabet delivered 11% year-over-year revenue growth in the third quarter of 2023

Net income jumped by an even more impressive 42% year-over-year. That growth helped the company exceed a 25% net profit margin.

Alphabet has received several “Buy” ratings and has an average price target of $162.17. This price target implies a 5% upside, but the highest price target of $180 suggests a 17% upside.

The stock has rewarded many long-term investors. Shares are up by 53% over the past year and have gained 177% over the past five years. The stock currently trades at a 29 P/E ratio and is closing in on a $2 trillion market cap. 

Amazon (AMZN)

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Amazon (NASDAQ:AMZN) is another big tech stock that has plenty of fans among Wall Street analysts. The stock is rated as a “Strong Buy” and has an average price target of $187.49. This price target suggests an 18% upside. The highest price target is $220 and suggests an additional 38% in gains.

The company has seen its growth accelerate after a slow 2022. Revenue jumped by 13% year-over-year in the third quarter of 2023. Amazon Web Services grew by 12% year-over-year while international sales drove in a 16% year-over-year growth rate. North American sales increased by 11% year-over-year.

Amazon has several business segments it can rely on for double-digit year-over-year revenue growth. The company is well-diversified and almost feels like a portfolio of its own. Twitch, Whole Foods, Audible, MGM and Zappos are some of the businesses that Amazon owns. 

Amazon shares have gained 56% over the past year and are up by 96% over the past five years.

Adobe (ADBE)

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Adobe (NASDAQ:ADBE) is a software company that offers an extensive catalog of resources for creatives and businesses. The stock has been a good find for long-term investors who are up by 66% over the past year. ADBE stock has gained 148% over the past five years.

Analysts are feeling optimistic about the stock and have rated it as a “Moderate Buy.” This rating comes from 30 analysts with 24 “Buys,” four “Holds” and two “Sells.” The average price target suggests a 6% upside. The highest price target is $730 which implies a 19% upside.

Adobe delivered a record-breaking fiscal year to reward optimistic analysts. The company generated $19.41 billion in revenue in fiscal 2023 and grew its EPS by 17% year-over-year. The company’s remaining performance obligations are $17.22 billion which is almost as much as the company made throughout the fiscal year.

Growth ended on a high note with revenue jumping by 12% year-over-year. Adobe’s vast range of products, recurring revenue model, and brand recognition make it a growth stock worth considering. If you are looking for growth stocks with “Strong Buy” ratings, start here.

On the date of publication, Marc Guberti 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.comPublishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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