Top Wall Street analysts suggest these 3 stocks for solid upside

The U.S. stock market continues to be volatile due to the uncertainty surrounding when the Federal Reserve will start to lower interest rates, and how many times. Despite the highest level of rates in a generation, and a tough macroeconomic backdrop, several companies have been delivering strong performances, reflecting the resilience of their business models.

To select the stocks of such companies that have attractive growth potential, investors can track the recommendations of Wall Street’s experts.

Here are three stocks favored by the Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performance.  

First up is the cloud-based workflow management platform ServiceNow (NOW). The company recently announced upbeat results for the fourth quarter of 2023 and raised its 2024 subscription revenue and operating margin guidance.

Following the results, Baird analyst Robert Oliver reiterated a buy rating on NOW stock and boosted his price target to $870 from $780. The analyst noted that all key financial metrics were above expectations in Q4 2023.

ServiceNow’s cRPO (current remaining performance obligations) that will be recognized as revenue over the next 12 months grew 23% on a constant currency basis. The Baird analyst highlighted that while this growth rate marked a slight deceleration from the 24% growth in the previous quarter, it surpassed the firm’s own guidance of more than 21% growth.

Oliver explained that the upside in cRPO was fueled by net new ACV (annual contract value) and higher early renewals. He also noted the strength of ServiceNow’s public sector business and the traction in its generative AI (artificial intelligence) products.

The Baird analyst said that his revised price target for NOW reflects a reasonable valuation of 44x his 2025 FCF (free cash flow) estimate, given…