In an era characterized by economic volatility and ever-changing political landscapes, the stock market has recently experienced significant gains, particularly influenced by the incoming administration of President-elect Donald Trump. Amidst this macroeconomic uncertainty, investors have an opportunity to sharpen their focus on companies equipped to endure challenges and yield substantial long-term returns. Analysts with proven track records have identified several stocks worth considering, each characterized by robust financial health and innovative offerings. Here we explore three notable stocks that stand out according to top analysts, who have shared their insights through platforms like TipRanks.
One standout in the tech sector is ServiceNow (NOW), a pivotal player in the realm of workflow automation enhanced by artificial intelligence (AI). Recently, the company reported quarterly earnings that surpassed expectations, attributed largely to the booming demand bolstered by advancements in AI. Mizuho analyst Gregg Moskowitz wasted no time in reaffirming his positive outlook on ServiceNow, upgrading the price target for its shares significantly from $980 to $1,070.
Moskowitz’s confidence is grounded in the company’s promising trajectory moving forward. Following a recent discussion featuring CFO Gina Mastantuono, analysts noted management’s assurance in achieving strong growth not just in the immediate future but also extending toward 2026. A key factor driving this optimism is the demand for ServiceNow’s Pro Plus SKU offering, which leverages generative AI to create efficiencies. Furthermore, the company is positioning itself for a vast expansion of its market, anticipating that its new Workflow Data Fabric product could effectively double its total addressable market to an astonishing $500 billion.
As AI continues to revolutionize business operations, ServiceNow’s emphasis on cultivating an agile response to market needs puts it in a prime position for sustained growth. Analysts are encouraged by the potential for monetization stemming from both workflow automation and the cross-selling opportunities that the new products can provide. Following Moskowitz’s lead, investors should closely evaluate ServiceNow’s innovations as prime catalysts for long-term success.
Next on the list is Snowflake (SNOW), a leader in data analytics software. Recently, Snowflake’s shares surged nearly 33% in response to its impressive third-quarter earnings report, which defied market expectations. TD Cowen’s Derrick Wood responded to this upsurge by reaffirming a buy rating on the stock and adjusting his price target upward from $180 to $190.
Wood’s analysis highlights a pivotal point in Snowflake’s evolution, crediting adaptive changes in its go-to-market strategy for the strong quarterly performance. The viability of their core data warehousing services has proven resilient, with the company effectively countering potential setbacks from storage costs. Notably, Snowflake has inked substantial contracts, including three $50 million deals in the third quarter alone—a clear indicator of robust market demand.
Furthermore, Wood noted a promising trend in Snowflake’s ability to capitalize on the burgeoning interest in AI workloads, particularly its innovative offerings like Dynamic Tables. With an impressive track record—his ratings yielding a success rate of 66%—Wood’s endorsement serves as a powerful signal for potential investors to consider Snowflake as a foundational piece in their portfolios.
The communications landscape is uniquely addressed by Twilio (TWLO), which recently showcased a remarkable bounce-back with significantly better-than-expected Q3 results. The San Francisco-based company, known for its cloud communications platform, attributes this success to its focus on financial discipline and innovative service offerings. In response to these promising results, Monness’ Brian White upgraded Twilio from a hold to a buy, setting a price target of $135.
This uptick in performance marks a vital shift for Twilio, which previously struggled to maintain growth momentum as the economy reopened after pandemic-induced restrictions. The company endured a slow revenue growth period, with a dramatic fall from a 67% growth rate in mid-2021 to a mere 4% by Q1 2024. However, significant strides in restoring its operational efficiency through cost-control measures have driven an improved operating margin and modest revenue acceleration.
As Twilio intertwines communication services with contextual data and AI, analysts like White express confidence in its potential for continued recovery into 2025. White’s speculative success, with 69% of his ratings being profitable, reinforces the belief in Twilio’s long-term value.
In a rapidly shifting economic environment, the value of thorough analysis and strategic foresight in investing cannot be overstated. The stocks of ServiceNow, Snowflake, and Twilio represent a fusion of innovation and financial stability that is imperative for long-term success. Investors willing to look past immediate market fluctuations will find in these companies an opportunity for durable growth in a demanding landscape. By putting resources into companies that not only survive but flourish amidst change, investors can position themselves wisely for the future.