Top Wall Street Analysts' Picks: 3 Stocks to Watch

In the current climate of market volatility sparked by tariff concerns and fears of recession, investors are seeking opportunities in stocks with solid fundamentals. Despite recent market pullbacks, prominent Wall Street analysts have identified several companies that show promising long-term growth potential at attractive price points. Here are three stocks that analysts from TipRanks highlight as favorable, including the tech powerhouse Microsoft.

Microsoft (MSFT)

Leading this list is the renowned technology firm Microsoft. With the rise of artificial intelligence (AI), Microsoft is poised to benefit significantly, although its stock has seen a decline this year due to overall market pressures and subdued earnings forecasts.

Jefferies analyst Brent Thill has reiterated a buy rating for Microsoft with a price target set at $550. He believes that following the recent stock dip, the risk versus reward dynamic is appealing, especially with a price-to-earnings ratio of 27 for the upcoming year. Thill cites several factors that could catalyze a rebound for Microsoft, including potential growth in its Azure cloud services and Microsoft 365 offerings as AI revenue gains prominence.

Thill pointed out that Azure has been steadily taking market share from Amazon Web Services, featuring a 15% growth in its order backlog, outpacing Amazon’s 8% and Alphabet’s Google Cloud’s 7%. For Microsoft 365, he anticipates that the integration of Copilot will lead to significant growth in efficiency, creating value for customers.

Moreover, Thill noted the sustained expansion of Microsoft’s operating margins, which remain impressively high compared to its larger peers. He also mentioned that, despite a recent 20% contraction in its free cash flow estimates, there may be positive revisions for fiscal estimates as capex growth stabilizes and AI revenue rises.

Snowflake (SNOW)

Next, we look at Snowflake, a leader in cloud-based data analytics software. Recently, the company posted impressive results for its fourth quarter of fiscal 2025, bolstered by robust demand linked to AI.

RBC Capital analyst Matthew Hedberg maintained a buy rating on Snowflake with a price target of $221, emphasizing the company’s aspiration to provide the easiest and most cost-effective cloud platform for enterprises focusing on AI and machine learning (ML).

Hedberg sees the recent pullback in Snowflake’s stock as an attractive buying opportunity, backed by an exceptional management team and a massive projected market opportunity of $342 billion by 2028. He praised the company’s core data warehousing products and the strides it has made in AI/ML functionalities.

Snowflake is delivering impressive growth at a sizeable scale, demonstrating 30% revenue growth while consistently improving its profit margins. Hedberg highlighted CEO Sridhar Ramaswamy’s commitment to product innovation, leveraging his experience from Google, while also enhancing the company’s marketing strategies to reach data analysts and scientists.

Netflix (NFLX)

Lastly, let’s examine the performance of Netflix, the streaming giant that continues to capture audience interest and investor support with its positive financial outcomes and strategic plans. The company recently celebrated surpassing 300 million paid memberships as of Q4 2024.

JPMorgan analyst Doug Anmuth has reaffirmed a buy rating for Netflix with an optimistic price target of $1,150. He explains that Netflix has outperformed the S&P 500 in 2025, which reflects the market's positive outlook regarding Netflix’s revenue predictions, a healthy slate of content, and its growing leadership in the streaming industry.

Rather than being influenced by macroeconomic challenges, Anmuth believes Netflix's strong viewer engagement and affordable pricing—particularly its $7.99 ad-supported tier—will help it thrive. He anticipates that Netflix's revenue growth will be driven by new subscriber additions and price increases in the U.S. and the UK, expected to generate more than $2 billion in additional revenue.

Additionally, Anmuth expects upcoming key content releases in 2025, including titles like The Residence and Black Mirror Season 7, to further boost subscription numbers. His overall perspective on Netflix remains upbeat, highlighting multiple factors supporting continued double-digit revenue growth and expanding profit margins alongside increasing free cash flows.

In conclusion, as uncertainty persists in the market, these three stocks—Microsoft, Snowflake, and Netflix—remain top picks among Wall Street analysts, who believe their fundamental strengths will position them favorably for future growth.

Stocks, Microsoft, AI