Wall Street analysts have recently greenlit several stocks to buy. Despite their mixed reputation, the truth is that not everyone can accurately predict bearish or bullish bets. Also, some may rate a particular stock a “buy” while others see it as a “sell.”
While individual analyst opinions might vary in their ability to accurately predict a stock’s future performance, their collective sentiment provides meaningful insight. A stock that has garnered multiple positive ratings, for reference, is more likely to present a good investment opportunity.
A useful approach to evaluate analyst views is to consider recent changes in ratings, as these are likely to reflect the latest available data. Stocks getting the green light from Wall Street tend to rise in price shortly after the upgrade, potentially forming a self-fulfilling cycle of increased buying interest lifting the share value.
These three stocks to buy have earned favorable reviews from many analysts recently, indicating strong upside potential according to their consensus ratings.
Colliers International (CIGI)
Colliers International (NASDAQ:CIGI) provides real estate professional services and investment management to corporate and institutional clients globally. As industries increasingly onshore functions and demand grows for advisory, engineering and project management support for relocations, Colliers becomes one of the stocks to consider buying.
The real estate market is also expected to strengthen with ongoing lower interest rates globally. Therefore, it was unsurprising that two analysts upgraded Colliers earlier this month. Raymond James and BMO Capital Markets, who previously recommended buying the stock, increased their price targets to $150 per share and $140 per share, respectively.
Analysts overwhelmingly view Colliers as a favorable addition to a growth portfolio. Growth estimates for the next quarter stand at 28.60%, while the S&P 500 index hovers at 10.20%. Of eight analysts, seven recommended buying, one maintained a hold rating and none suggested selling. The average analyst price target for CIGI stock is $140 per share, representing a potential upside of around 28%.
Elevance Health (ELV)
Elevance Health (NYSE:ELV) is a leading health benefits company in the United States. It offers a variety of health plans and specialty insurance programs, including dental, stop loss, vision and life insurance. As the largest for-profit managed healthcare company affiliated with Blue Cross and Blue Shield Anthem plans, Elevance Health has sustained growth in the healthcare segment.
The company has focused on improving efficiency. In the first quarter of 2024, Elevance grew revenue just by 0.9% but increased adjusted EPS by 12.5%. Its operating margin grew by 7.52% and return on equity (ROE) increased by 15.95%. Subsequently, Bank of America upgraded its price target to $646 per share.
As a healthcare company, Elevance’s price-to-earnings ratio of 20.3x is below the S&P 500 benchmark of 27.9x. However, analysts particularly favor this stock, with 19 of 22 covering analysts recommending it as one of the stocks to buy. The average price target is $609.25 per share, indicating a potential upside of approximately 13.4%.
US Foods (USFD)
US Foods (NYSE:USFD), a food distribution company, may not seem like an obvious choice in the current economic climate. The company supplies fresh, frozen and dry food products to restaurants, hospitals and nursing homes across America.
Receding inflation has led analysts to predict record tourism this year. Increased travel could drive higher food demand from restaurants in popular destinations. Major airlines reported an expected increase in passengers to the U.S. by 6.3% year-over-year from June to August.
Growth estimates for the current and next quarter reflect this sentiment. The company is seen returning 17.70% and 21.40%, respectively, while the benchmark stands at 7.60% and 10.20%. Sales are expected to grow by 7.10% in the next quarter.
Four analysts upgraded their price targets for US Foods in June: JPMorgan Chase, Truist Financial, Wells Fargo and Piper Sandler. On average, their price target now stands at $64.56 per share, representing a potential upside of 24% from current levels.
On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
