The U.S. stock market has recently shown a positive trajectory, especially following the Federal Reserve’s long-awaited decision to reduce interest rates. Despite an encouraging September performance, investor outlook remains clouded by rising geopolitical tensions, particularly in the Middle East. This context calls for a measured approach to investing—shifting focus away from immediate market noise and instead towards stocks that promise substantial long-term growth potential. In this article, we’ll examine three stocks that have garnered attention from top analysts, utilizing data from TipRanks, an analyst ranking platform.
First on the list is CyberArk Software (CYBR), a leading entity in the cybersecurity sector, specifically focusing on identity security solutions. Recent quarterly results have not only exceeded expectations but also led to a revision upward of the company’s full-year guidance—an indication of robust demand for its offerings. Analyst Matthew Hedberg from RBC Capital has initiated coverage of CyberArk with a buy recommendation and has set an ambitious price target of $328.
Hedberg’s outlook is rooted in his belief that CyberArk is positioned well to consolidate identity-focused expenditures, banking on a compelling growth trajectory fueled by the burgeoning need for identity security. Notably, CyberArk’s primary market, known as Privileged Access Management (PAM), holds significant growth prospects. However, Hedberg emphasizes the potential for the company to surpass its core market by tapping into areas such as Access, Secrets, Endpoint Privilege Management (EPM), and machine identities.
Additionally, the recent acquisition of Venafi, which specializes in machine identity management, is expected to bolster CyberArk’s growth. Hedberg anticipates that Venafi’s performance will contribute meaningfully to CyberArk’s margins, with growth projections exceeding 20%. This optimism stems from a broader total addressable market (TAM) estimated at $60 billion. Hedberg’s track record reinforces his credibility; he ranks 164 out of over 9,000 analysts on TipRanks, having delivered profitable ratings 62% of the time.
Next, we turn our attention to Uber Technologies (UBER), a multifaceted player in the ride-sharing and food delivery markets. Following meetings with the company’s management, analyst Doug Anmuth from JPMorgan has maintained a buy rating on Uber, projecting a price target of $95. Anmuth’s insights reveal a confident outlook from Uber’s management, particularly regarding their ambitious three-year forecast of mid- to high-teens compound annual growth rates for gross bookings, sustained by steady demand dynamics.
In conversations with management, Anmuth highlighted continued strength in both Uber’s Mobility and Delivery sectors. Noteworthy is the optimism surrounding the expansion of Uber’s advertising business, which, at a run-rate of $1 billion, constitutes a vital area of growth—accounting for roughly 1% of delivery gross bookings currently. As the company aims to tap into grocery advertising, Anmuth noted that over time, this could rise to 5% of gross bookings, further enhancing profitability.
Moreover, Anmuth points towards Uber’s burgeoning efforts in autonomous vehicle (AV) technology. He recognized the potential benefits that AV technology could bring to the overall ecosystem, including improved demand and utilization rates. Anmuth ranks 93 among the analysts tracked by TipRanks, with a solid 62% success rate and an average return of 18.4%.
Meta Platforms: Innovations Driving Future Growth
Lastly, we examine Meta Platforms (META), which recently showcased its advancements during the Meta Connect event. The highlight was the launch of the Quest 3S virtual reality headset alongside other innovations, including augmented-reality (AR) smart glasses and developments in artificial intelligence (AI). Following the announcements, Baird analyst Colin Sebastian raised his price target for META stock from $530 to $605, supporting his viewpoint with a number of key factors.
Sebastian perceives a rich opportunity for Meta to enhance its core monetization strategies thanks to the incorporation of AI and generative AI features. His analysis underscores the positive momentum in social media advertising, suggesting a healthier outlook compared to previous months. By revising his earnings estimates for the next couple of years due to anticipated stable macroeconomic conditions, he reflects confidence that Meta’s devices and AI capabilities will keep driving growth.
However, Sebastian also slightly reduced his 2025 operating margin estimate, accounting for rising operational expenses associated with high-tech developments. His exploration of Meta’s Reality Labs division revealed promising advancements, especially in AI, where he foresees the Meta AI assistant becoming a leader in its category by the close of 2024. With a ranking of 277 among analysts on TipRanks and a profitability rate of 57%, Sebastian brings significant insights into Meta’s promising future.
Each of these companies presents unique opportunities driven by innovative strategies and solid fundamentals. Investors focusing on long-term fundamentals may find value in these stocks—CyberArk, Uber, and Meta—as they adapt and thrive within their respective industries.
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