Despite ongoing uncertainty, top Wall Street analysts prefer these five stocks

As recession fears persist, market gurus continue to search for opportunities to select promising equities trading at appealing levels. According to TipRanks, a website that rates analysts based on their prior success, these are the five stocks recommended by Wall Street's top analysts.

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Apple

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Apple, a leading innovator in technology, is listed first (AAPL). The company's performance in the December quarter was severely impacted by supply chain difficulties associated with the iPhone in China, as well as by currency and macroeconomic challenges. Yet, a number of analysts, like Amit Daryanani of Evercore ISI, are still optimistic about the company.

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Daryanani responded to investor worries over his bullishness on Apple in a recent research report, despite the company's premium valuation in comparison to its major tech competitors. According to the analyst, given its outstanding efficiency performance measures like the return on capital invested (5-year average ROIC of 39% especially in comparison to the peer group average of 21%), strong free cash flow, and capital return, Apple's premium valuation is "not only warranted but could further expand" in the current macro environment.

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The business was "more sensible" in its hiring during in the pandemic, as opposed to numerous tech companies who quickly grew their personnel, according to Daryanani, who also noted that "Apple has traditionally operated with a better degree of consistency and critically lesser volatility." As a result, Apple stayed away from excessive stock-based compensation expenses and layoffs. 

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Daryanani maintained his buy rating and $190 price target for Apple. On TipRanks, the analyst is ranked 236th out of more than 8,000 analysts. Nevertheless, 60% of his ratings have generated profits, with a 11.4% average return. (See TipRanks' Apple Blogger Opinions & Sentiment)

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Cloudflare

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The cloud-based media distribution system and security service Cloudflare (NET) is the next on the list. The organization's vast international network, which supports websites, application programming interfaces, and mobile applications, spans more than 285 cities in more than 100 nations.

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Shaul Eyal, an analyst at TD Cowen, believes that the market "underappreciates" Cloudflare's capacity to effectively supply new apps, including enhanced protection, with little additional expense.

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According to Eyal, who is ranked 11 out of more than 8,300 analysts monitored by TipRanks, Cloudflare's revenue will increase by more than 38% this year due to new business and customer base growth. (Visit TipRanks to view Cloudflare Hedge Fund Trading Activity.)

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Eyal added that the company is "disrupting" a number of market categories, including infrastructures, communications, security, and edge computing, and that more than 40% of its income is generated globally. These divisions currently account for an addressable market worth more than $115 billion, which is anticipated to increase to $135 billion by 2024.

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Eyal reiterated a buy rating with a $75 price target for Cloudflare. Surprisingly, Eyal has a success record of 67% and an average return on each of his ratings of 24.1%.

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Foot Locker

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Foot Locker (FL), a retailer of sports footwear and gear, this week released positive financial results for the fourth quarter of the year 2022. The business announced its renewed alliance with Nike  and lengthy development strategy, which consists of a number of activities such as changing its real estate footprint by launching new format stores, moving to off-mall sites, and shutting underperforming stores.

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Under Mary Dillon's direction, Foot Locker's long-term growth plan calls for revenue growth of 5% to 6% and normalized per-share earnings growth in the low- to mid-twenties for the fiscal years 2024 through 2026.

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However, he believes that the company's strategic plan requires time to materialize as Dillon is still establishing her team. Guggenheim analyst Robert Drbul anticipates that Foot Locker would gain from CEO Dillon's "extensive background and profound understanding of the off and big-box retailing."

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Drbul reiterated a buy recommendation on Foot Locker stock with a $60 price target, noting that "2023 will be a rollback year as Foot Locker traverses its reinvigorated Nike (NKE) connection, repositions its New champions banner, optimizes its fleet, soaks up exit costs, rises its major technology, and keeps pushing for cost savings." 

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On TipRanks, Drbul is ranked No. 440 out of more than 8,000 analysts. His ratings have generated profits 61% of the time, with an average 7.5% return on each one. (See TipRanks' Foot Locker Stock Chart.)

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Cisco Systems

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Cisco (CSCO) provides a wide selection of goods and services in the areas of networking, security, teamwork, and the cloud. Ivan Feinseth, an analyst with Tigress Financial, recently restated his buy recommendation on Cisco and set a price target of $73 for the company. He claimed that the company would continue to profit from the growing need for faster, more secure systems and cloud hosting infrastructure.

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While corporate customers kept updating their networks during the pandemic due to "growing demand for accessing information and related services," Feinseth remarked that the company built up a sizable order backlog.

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In addition to CSCO's ongoing transition to services- and software-driven subscription revenue, Feinseth predicted that IT spending will continue to recover and increase through 2023 and beyond. (See TipRanks' Cisco Insider Trade Activity)

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The analyst added that Cisco's strong cash flow and balance sheet continue to support its expansion initiatives, strategic acquisitions, and improved shareholder returns. On TipRanks, Feinseth is ranked 164th out of more than 8,000 analysts. Furthermore, he has received a profit on 62% of his ratings, with an average return of 11.8%.

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Acushnet Holdings

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Feinseth has high hopes for Acushnet (GOLF), a business that distributes golf equipment and is the owner of well-known names like Titleist and FootJoy. The analyst recently raised the price target on GOLF stock from $50 to $62 and upgraded the stock to buy from hold.

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Feinseth anticipates Acushnet's strong brand equity, industry-leading goods, and recent product introductions to propel the stock price upward. Feinseth underlined that double-digit sales increase in the Titleist golf club, Titleist gear, and FootJoy golf wear categories helped the company's 2022 results.

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The analyst stated that a variety of cutting-edge items, including new TSR models that quickly became "the most-played model on the PGA tour," contributed to Acushnet's success in 2022. (See Acushnet Financial Statements on TipRanks)

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According to Feinseth, "GOLF is well-positioned to benefit from the continuing post-pandemic expansion in golf, including hours played and player population growth, especially from young and new golf players."