Stocks

Top Wall Street Analysts Highlight 3 Promising Stocks for Long-Term Growth

Top Wall Street Analysts Highlight 3 Promising Stocks for Long-Term Growth

September has started on a challenging note for the U.S. stock market, with certain economic readings indicating potential weaknesses. Even though near-term fluctuations may cause uncertainty, investors should consider the insights from top Wall Street analysts who identify promising stocks based on their potential for long-term growth. In this article, we take a look at three stocks that have gained favor among these top analysts, as per TipRanks, a platform that ranks analysts based on their track record.

First on the list is Planet Fitness (PLNT), a franchisor and operator of over 2,600 fitness centers. The company recently delivered better-than-expected results for the second quarter and reaffirmed its full-year guidance, attributing the strong performance to its asset-light franchise model. Baird analyst Jonathan Komp reaffirmed his buy rating on Planet Fitness, setting a price target of $92. Komp designated the stock as a 'Bullish Fresh Pick,' optimistic about the initiatives under new leadership and other growth drivers. Efforts to enhance return on invested capital, improved pricing strategies, and extended remodel timelines are bolstering Planet Fitness' position.

Komp highlighted the company's solid consumer value proposition and high-margin franchise model, both of which are expected to remain robust even in a challenging macroeconomic environment. Komp ranks No. 266 among more than 9,000 analysts tracked by TipRanks, with a 56% success rate and an average return of 15.1%.

Next, we have Ross Stores (ROST), an off-price retail chain that has impressed investors with strong second-quarter results driven by increased demand for its value offerings. The company raised its full-year earnings guidance to reflect its success. TD Cowen analyst John Kernan reaffirmed his buy rating on Ross Stores and increased the price target to $185 from $173. Kernan noted that the company’s enhanced merchandising efforts and cost-saving measures have supported growth in comparable sales and improved margins.

He expects the operating margin to expand to over 13% by fiscal 2028, up from 11.3% in fiscal 2023. Kernan believes the valuation gap between Ross Stores and its competitor TJX still provides upside potential in the near term. He ranks No. 795 among TipRanks analysts, with a 54% success rate and an average return of 7.8%.

Lastly, we have SentinelOne (S), a cybersecurity provider that reported strong results for the second quarter of fiscal 2025, marking its first positive net income and adjusted earnings per share. The company also increased its full-year revenue guidance, driven by the strength of its AI-powered Singularity Platform. Baird analyst Shrenik Kothari reiterated his buy rating on SentinelOne, setting a price target of $29. Kothari highlighted the company's 32% growth in annual recurring revenue and solid expansion within its existing customer base, driven by new and emerging products.

Despite a challenging macro environment, SentinelOne's upgraded outlook reflects better pipeline retention and win rates. The company has seen increased interest in its platform following a rival’s IT outage, indicating the resilience and growing demand for its offerings. Kothari ranks No. 233 among TipRanks analysts, with a success rate of 69% and an average return of 22.1%.

Overall, Planet Fitness, Ross Stores, and SentinelOne have shown strong potential according to top Wall Street analysts. Investors looking for robust stock picks might find promising opportunities in these companies, given their promising growth drivers and resilience in varying economic conditions.