1. CoreWeave Inc. (CRWV)
- Analysts have rated CoreWeave a “STRONG BUY”
- The average analyst one year forecast is +61%
- Impressive earnings growth forecasts
- High valuation (11 Price to Sales)
- Beat their last 4 earnings calls
- Has had 5 earnings “up” revisions recently
- Revenue steadily climbing quarter over quarter
Analysts love CoreWeave because of it’s current positioning in the AI boom as a cloud computing provider, which maximizes potential revenue while minimizing complete reliance on AI spending. Cloud computing was forecasted to expand rapidly before AI, which makes it relatively low risk compared to companies leading the charge with extreme AI exposure like Google, Microsoft, and Amazon. This favorable position as an AI support function is clearly paying off right now as we have seen CoreWeave continue to get upgraded over time, as it’s experienced 5 increases to earnings forecasts lately amidst a series of earnings beats. So despite a seriously high valuation, it’s earnings forecasts are certainly there to mitigate that valuation risk and so we have rated this medium risk, high reward.
2. Amazon.com Inc. (AMZN)
- Analysts have rated Amazon a “STRONG BUY”
- The average analyst one year forecast is +16%
- Insiders have been selling off the stock
- Average valuation for a Mag 7 tech company (28 PE)
- Diverse, reliable revenue sources
- Beat their last 3 earnings calls
Amazon has been a top choice among analyst for a long time, and for good reason. Their revenue sources in AWS and online stores offer B2B and B2C income streams which results in a high degree of diversification. Analysts have rated Amazon a “Strong Buy” and also offer impressive one year forecasts given Amazon overall size and maturity, which speaks volumes given the impressive earnings history of the company. So while insiders have been selling, potential investors should take solace in the favorable analyst forecasts, earnings growth projections, and their revenue diversification. As such, we have rated Amazon low risk, medium reward.
3. Walmart Inc. (WMT)
- Analysts have rated Walmart a “STRONG BUY”
- The average analyst one year forecast is +6%
- Dividend has been growing for 50 years
- Beat all 4 of their last earnings calls
- Impressive earnings consensus estimates
- High valuation (45 PE)
- High EPS growth outlook (+38% by Jan 2030 to $3.95/share)
Up over 32% this past year, Walmart stock has seen massive growth lately and continues to remain a consumer haven amidst shoppers battling rising inflation and stagnating wage growth. Therefore it’s hardly a surprise to learn that analysts are forecasting big EPS gains over the next 4 years, something clearly already reflected in the massive 45 Price to Earnings – meaning investors are expecting big things. And with Walmart being able to continue to beat earnings calls while offering an impressive dividend history, it’s easy to see why analysts can’t stop raving about it. We have rated this low risk, medium reward and maintain a “BUY” rating.
