Tariffs under the Trump administration have triggered concerns about the impact on demand and fears of a potential recession, roiling the stock market.
Amid the ongoing volatility, the pullback in several stocks with strong fundamentals presents a lucrative opportunity to build a position. Top Wall Street analysts are spotting attractive names with robust long-term growth prospects — and they are trading at compelling levels.
With that in mind, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Microsoft
First on this week’s list is tech giant Microsoft (MSFT), which is considered to be one of the key beneficiaries of the ongoing artificial intelligence wave. MSFT stock is in the red so far this year due to pressures in the broader market and the weak quarterly guidance issued by the company.
Recently, Jefferies analyst Brent Thill reaffirmed a buy rating on MSFT with a price target of $550, saying that following the recent sell-off, the stock’s risk/reward profile looks attractive at 27-times the next 12 months’ earnings per share. Thill said that despite the recent underperformance, MSFT remains one of Jefferies’ favorite large caps. He sees multiple drivers for the stock to reboot, including the possibility of growth in Azure and M365 Commercial Cloud to stabilize or inflect as AI revenue becomes more significant.
The analyst noted Azure’s continued share gain against Amazon’s Amazon Web Services and solid AI-driven backlog growth, with MSFT seeing 15% backlog growth in the December quarter compared to Amazon’s and Alphabet’s Google Cloud’s 8% and 7% growth rates, respectively. For M365 Commercial Cloud, Thill expects Copilot to continue to experience a solid but gradual adoption that will become more material in Fiscal 2026.
Another driver highlighted by Thill was the continued expansion in MSFT’s operating margin despite significant AI investments. “MSFT’s margin in the mid-40s are still well above large cap peers in the mid 30s,” he said.
Finally, Thill contended that while Microsoft’s free cash flow (FCF) estimates have contracted by 20% since Q4 FY23, he sees the potential for positive revisions to FY26 estimates as capital expenditure growth starts to moderate and AI revenue grows.
Thill ranks No.677 among more than 9,400 analysts tracked by TipRanks. His ratings have been successful 57% of the time, delivering an average return of 7.5%. See Microsoft Ownership Structure on TipRanks.
Snowflake
Cloud-based data analytics software company Snowflake (SNOW) is this week’s second stock pick. The company delivered better-than-expected results for the fourth quarter of fiscal 2025 and issued a solid full-year outlook, driven by AI-related demand.
On March 23, RBC Capital analyst Matthew Hedberg reiterated a buy rating on Snowflake stock with a price target of $221. Following a meeting with the management, the analyst said that he has a “better appreciation for the company’s goal to be the easiest-to-use and most cost-effective cloud enterprise data platform,” for AI and machine learning (ML).
Hedberg views SNOW stock as an attractive pick, especially after the recent pullback, due to its superior management team, a $342 billion market opportunity by 2028, and the right architecture. He also highlighted other positives, including the strength of the core data warehousing and data engineering products and the progress made in AI/ML offerings.
“With 30% growth at a $3.5B scale, multiple idiosyncratic revenue drivers and margin improvement, SNOW remains one of our top ideas,” said Hedberg.
The analyst also highlighted that while Snowflake’s CEO Sridhar Ramaswamy is focused on product innovation, given his experience at Google and Neeva, he is also working equally as hard on improving the company’s go-to-market selling to both data analysts and data scientists.
Hedberg ranks No.61 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 64% of the time, delivering an average return of 18.8%. See Snowflake Insider Trading Activity on TipRanks.
Netflix
Finally, let’s look at streaming giant Netflix (NFLX), which continues to impress investors with its upbeat financial performance and strategic initiatives. In fact, the company surpassed the 300 million paid membership mark in Q4 2024.
Recently, JPMorgan analyst Doug Anmuth reiterated a buy rating on Netflix with a price target of $1,150. The analyst noted that NFLX stock has outperformed the S&P 500 so far in 2025, reflecting optimism about the company’s 2025 revenue outlook, solid content slate and growing dominance in the streaming space.
Anmuth thinks that “NFLX should prove relatively defensive against macro headwinds,” given the robust engagement and affordability of the platform coupled with high engagement value. The analyst also highlighted that the company’s low-price ad tier at $7.99 per month in the U.S. makes the service widely accessible.
Aside from robust engagement, Anmuth expects Netflix’s 2025 revenue growth to be bolstered by organic subscriber additions and a rise in average revenue per member due to recent price hikes, with the higher prices expected to drive more than $2 billion in revenue from the U.S. and UK.
The analyst also expects Netflix to gain from an attractive content slate in 2025, with key releases like The Residence, Harlan Coben’s Caught, Devil May Cry, The Clubhouse: A Year with the Red Sox, Black Mirror Season 7, and You Season 5. Overall, Anmuth has a bullish stance on NFLX due to multiple drivers, including expectations of double-digit revenue growth in 2025 and 2026, continued expansion in operating margin and a multi-year free cash flow ramp.
Anmuth ranks No. 82 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 61% of the time, delivering an average return of 19.2%. See Netflix Options Trading Activity on TipRanks.
This post was originally published on CNBC Markets
