Top Wall Street Analysts' Recommendations: Stocks With Attractive Upside Potential

As 2024 wraps up, investors have navigated a whirlwind year marked by the U.S. presidential election, growing enthusiasm around artificial intelligence (AI), and persistent concerns about elevated interest rates. Looking ahead to 2025, macroeconomic conditions are expected to improve, but risks like a potential U.S.-China trade war and high stock valuations may weigh on the markets.

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Despite these challenges, Wall Street analysts remain focused on stocks with strong fundamentals and growth potential that can withstand short-term pressures. Here are three promising companies that analysts highly recommend, based on insights from TipRanks, a platform that evaluates analysts’ past performance.

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Salesforce

Salesforce (CRM), a leading customer relationship management platform, has gained significant traction with its AI initiatives. Earlier this month, the company provided robust guidance for the fourth quarter of fiscal 2025, underscoring the transformative role of its AI-powered Agentforce suite.

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On December 17, Salesforce launched Agentforce 2.0, an advanced version of its flagship AI platform, boasting improved features. Mizuho analyst Gregg Moskowitz, impressed by the innovation, reiterated a "buy" rating for Salesforce with a price target of $425. Moskowitz described Agentforce 2.0 as a "game-changing technology," citing its enhanced integration with Slack, Tableau, and MuleSoft, as well as improved data retrieval and reasoning capabilities.

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Salesforce has achieved impressive momentum with Agentforce, securing over 1,000 paid deals—up from just 200 deals at the end of fiscal Q3. According to Moskowitz, this innovation is well-positioned to drive productivity for clients while boosting the company's bookings and revenue growth.

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Moskowitz, ranked in the top 3% of analysts tracked by TipRanks, continues to view Salesforce as a top pick for its ability to help clients optimize processes and enhance revenue management.

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Booking Holdings

Booking Holdings (BKNG), a global leader in online travel services, is another stock analysts are optimistic about. Mizuho analyst James Lee recently reaffirmed his "buy" rating on the stock, raising the price target to $6,000 from $5,400. Lee's bullish outlook is based on higher growth-rate estimates and a favorable market outlook.

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Lee's regional analysis revealed robust room night growth for fiscal 2025, particularly in Europe, Asia, and the U.S., exceeding consensus estimates. He expects Booking Holdings’ earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow by mid-teens in fiscal 2025, outpacing the estimated revenue growth of 11%. Factoring in stock buybacks, Lee anticipates a 20% rise in earnings for the year, making the stock’s valuation at 16 times fiscal 2026 EBITDA appealing.

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According to Lee, Booking Holdings’ competitive edge lies in its advanced digital marketing strategies, expanding offerings in alternative accommodations, and leadership in hotel bookings. These factors warrant a premium valuation compared to its competitors.

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Lee ranks among the top 4% of analysts on TipRanks, with a track record of delivering an average return of 13.4%.

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DraftKings

DraftKings (DKNG), a prominent player in sports betting and iGaming, rounds out the list. With operations in 25 U.S. states and Washington, D.C., as well as a presence in Ontario, Canada, the company is well-positioned to capitalize on the rapidly growing market.

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JPMorgan analyst Joseph Greff recently identified DraftKings as one of his top picks for 2025. Greff reiterated his "buy" rating and increased the stock’s price target to $53 from $47, citing strong growth potential in the gaming sector.

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Greff highlighted DraftKings’ ability to leverage its scale and market leadership to drive better margins, EBITDA, and free cash flow. The company’s disciplined approach to controlling operating expenses further strengthens its position. For 2025, Greff projects a 31% revenue growth rate, followed by 13% in 2026, aligning with Wall Street’s expectations for sustained growth.

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DraftKings’ competitive edge lies in its superior product capabilities, customer acquisition expertise, and ability to outperform newer entrants like ESPN BET and Fanatics. Greff believes the company is poised to thrive in the evolving sports betting landscape.

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Ranked in the top 11% of analysts on TipRanks, Greff has a track record of delivering consistent returns, with an average success rate of 51%.

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Despite concerns about global trade tensions and elevated valuations, these three stocks stand out for their strong growth prospects and innovative strategies. Salesforce's advancements in AI, Booking Holdings’ dominance in online travel, and DraftKings’ leadership in sports betting position them as solid investments for 2025.

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As analysts continue to identify opportunities in a complex economic landscape, these companies offer a compelling combination of resilience and growth potential for investors navigating the new year.

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