The S&P 500 is down 8.6% in a month while the Nasdaq has lost nearly 13%. Markets continue to scare retail investors as stock after stock struggles to deal with the aftermath of Donald Trump’s unpredictable and aggressive policies.
While it is advisable to stay out of the market till the dust settles, one also can’t deny that it is times like these that bring opportunities. We decided to come up with a list of stocks that are expected to go up even in the existing gloomy environment.
To come up with the list of 10 stocks that Wall Street is bullish on, we looked at stocks that were recently upgraded by analysts and have performed well in the last 5 days of trading.
A development team working together to create the next version of Windows.
10. Check Point Software Technologies Ltd. (NASDAQ:CHKP)
Check Point Software Technologies Ltd. is a marketer, developer, and supporter of a variety of products and services for IT security. It provides a multilevel security architecture, mobile devices, IoT solutions, networks, endpoints information, and cloud. The stock was just upgraded from Equal Weight to Overweight at Wells Fargo, and the reason has to do with the new CEO.
Nadav Zafrir, who became the CEO of CHKP at the end of last year, is the former commander of Unit 8200. Unit 8200 is an intelligence unit of the Israel Defense Force. As someone with hands-on experience in how to deal with cybersecurity at a national level, he brings immense value to the company. Wells Fargo had this to say about the new CEO:
“While many other CEOs in the cybersecurity landscape have strong relationships with executives in the Fortune 500, very few (if any) have the ‘hands-on’ experience of defending against a nation-state cyber attack as Mr. Zafrir has.”
Wells Fargo also upgraded the target price from $200 to $280. Last month, JP Morgan boosted its price target on the stock to $255 from the previous target of $221. The company is expected to grow at 6% this year as well as in 2026 with the free cash flow also projected to grow at a rate of 13%-14% in the next two years.
9. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Chipotle Mexican Grill, Inc. is the operator and owner of Chipotle Mexican Grill restaurants. The company supplies a variety of food including burrito bowls, tacos, salads, burritos, quesadillas, and others. It also offers delivery and related services through its website and app.
Loop Capital just upgraded the stock from Hold to Buy assigning it a price target of $65, a 33% upside from current levels. While the business isn’t necessarily booming, the 17% year-to-date fall in the stock price has a lot to do with the upgrade.
In addition to the share price dip, there’s one metric that has attracted analysts’ attention. The company was able to maintain comparable traffic growth in 2024 despite an extremely challenging environment for the restaurant industry. Analyst estimates continue to factor in this challenging environment but CMG could surprise to the upside as soon as things ease out for the industry. Loop Capital doesn’t rule out a 7% to 8% upside surprise to the 2025 EPS estimate of $1.3.
Last month, Morgan Stanley also upgraded the stock citing the fundamental strength of the business that powers its bull thesis. While the stock price stays under the radar, CMG continues to be a good share to accumulate.
8. Green Dot Corporation (NYSE:GDOT)
Green Dot Corporation is a financial technology and registered bank holding company. The company offers different financial services to businesses and individuals. It operates in Business to Business Services, Consumer Services, and Money Movement Services segments.
According to Wall Street analysts, the company has the highest target price of $14 which means it could gain 88.17% from here on if the bull thesis proves accurate. The median price target of $11 has a 47.85% upside from current levels.
The company recently received an upgrade from Craig Hallum with a revised rating of Buy. Analysts believe that the company’s BaaS platform and Tax division could be appealing to a private equity buyer, which would lead to a potential acquisition of the company or breaking of the business into multiple units, which could unlock a better valuation.
GDOT’s shares surged as a result of this upgrade and gained 14% in the last five trading sessions. This upward trend in the stock performance is likely to continue in the future as Wall Street analysts are very optimistic about the stock’s M&A angle.
7. Danaher Corporation (NYSE:DHR)
Danaher Corporation is a manufacturer, designer, and marketer of medical, industrial, research, and professional products and services. The company operates in the Diagnostics, Biotechnology, and Life Sciences segments. DHR experienced a 15% downturn in the previous year.
The company’s stock was upgraded last week by Stifel from Hold to Buy with a price target of $260. This upgrade was fueled by the analysts’ belief that the company’s recent cost-saving initiatives are likely to have a positive impact on revenue growth. Though the 2025 guidance was lower than expected, analysts think new cost-saving actions could boost revenue and margin growth. The stock jumped 2% on the upgrade and continued to recover past year’s losses.
Danaher reported FQ424 earning results recently. As per the result, the company exceeded revenue estimates by 1.2% YoY. While it missed EPS estimates by a small margin, analysts believe that the company’s 1Q2025 results may be less exposed to risks associated with academic/government demand.
Regardless of the less impressive current profit profile, the company is expected to drive significant acceleration in profits in the next 12 months, reaching an EPS of $9 in FY2026 as per estimates.
6. Nektar Therapeutics (NASDAQ:NKTR)
Nektar Therapeutics operates as a biopharmaceutical company that discovers and develops therapies to treat autoimmune disorders. Its products include NKTR-358, PEG-CSF1, and others. The company’s stock price gained 6% in the previous year despite a downturn in the second half of the year.
Based on 9 different analyst ratings, NKTR has the highest target price of $7 which means it has the potential to grow more than six times higher from the current levels if the bull thesis holds true. The stock is currently trading at $0.91 which is 9.97% below the lowest Wall Street price target of $1.
The company was recently upgraded by Oppenheimer from Perform to Outperform with a price target of $6. According to the analysts, the company’s stock valuation was attractive prior to the mid-stage trial results for its eczema therapy Rezpegaldesleukin. Analyst Jay Olson emphasized that Rezpeg’s distinctive profile places it in a strong position to grow in an expanding market and could offer significant benefits for eczema patients. Despite risks, investors could make 6x their money in this stock.
5. Houlihan Lokey, Inc. (NYSE:HLI)
Houlihan Lokey, Inc. operates as an investment banking company and offers merger and acquisition (M&A), financial and valuation advisory, and other services. The company operates through Corporate Finance (CF), Financial and Valuation Advisory (FVA), and Financial Restructuring (FR) segments.
The investment banking firm was recently double-upgraded by Wells Fargo from Underweight to Overweight. This upgrade came on the back of the company’s “balanced/all-weather business model, which is well-positioned to benefit from market fluctuations. According to the analysts at Wells Fargo, HLI’s robust business model offers stability and protects against market volatility through its diversified portfolio and counter-cyclical restructuring franchise.
“All told, we expect the market to pay a premium for HLI and see it as a compelling relative outperformer.”
The company recently announced its Q3 financial results demonstrating a strong performance. As per the results, the company grew its revenue by 24% YoY accompanied by a 34% YoY increase in the adjusted EPS. On top of this solid performance, the company presented a positive outlook for FY2026.
The management is optimistic that the company’s restructuring and M&A activities will keep growing, with the potential for further expansion in market share in 2026.
4. Invitation Homes Inc. (NYSE:INVH)
Invitation Homes Inc. is an S&P 500 company and operates as a leading single-family home management and leasing company. The company provides updated and high-quality homes to customers.
The rental REIT company was upgraded to Outperform at Mizuho Securities in anticipation of rising rents in the country. Moreover, with supply chain headwinds expected to ease out this year, the company is set for a spectacular year. This should also result in improved rent, same-store revenue as well as guidance heading into 2026.
The stock jumped after an impressive earnings call reversing the year-long downtrend. Despite that reversal, there is ample value to be had for investors willing to bet on higher interest rates for longer as well as the national housing availability crisis.
3. Novo Nordisk A/S (NYSE:NVO)
Novo Nordisk A/S researches, develops, manufactures, and sells pharmaceutical products. The company operates through Rare Disease and Obesity & Diabetes care segments. Regardless of a 39% decline in the previous year, the stock has already started recovering and is now following an upward trend.
The company’s share price rebounded after Kepler Cheuvreux upgraded NVO citing its effective obesity/diabetes medications. The financial services firm raised its rating on the company from Hold to Buy with a target price of 630 Kroner. In recent months the company’s stock faced pressure due to concerns about its sky-high valuation and disappointing clinical trial results for its next-gen weight loss therapy. Kepler analyst David Evans uplifted investors’ confidence by stating this is the perfect entry point.
“After a few years of us thinking that market optimism on Novo was excessive, we now think the pendulum has swung too far the other way,”
According to 26 different analyst ratings, Novo has the highest target price of $168.39 which means it could more than double from the current levels if the optimistic scenario unfolds. A 38% dip in the stock price in just six months is the perfect opportunity to load up on the stock.
2. Wells Fargo & Company (NYSE:WFC)
Wells Fargo & Company is a financial services company. The company operates in Commercial Banking, Wealth and Investment Management, Consumer Banking and Lending, and Corporate and Investment Banking segments. The stock is down 11% in a month and investors are pounding on the opportunity, especially considering the 2.25% dividend yield.
WFC was also upgraded to Outperform from Sector Perform, mainly because of the recent dip in stock price. But that’s not all. The company’s $1.95 trillion asset cap, which was placed in 2018 by the Federal Reserve, is expected to be lifted soon as it has succeeded in satisfying the regulatory authorities. This could unlock greater profitability down the road:
“Once the asset cap is lifted, we believe WFC should be able to execute on its future growth plans to achieve its 15% ROATCE target, which should result in a higher valuation over time”
1. Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation is a developer and supporter of services, devices, software, and solutions. The company operates through The Intelligent Cloud, More Personal Computing, and Productivity and Business Processes segments.
Microsoft has disappointed investors in the last year or so, underperforming the broader market. The company continues to spend massively on AI infrastructure with no idea of a return on investment in sight.
Things could change soon though as analysts start noticing the recent price decline. D.A. Davidson recently upgraded the stock, boosting its price target from $425 to $450. Analysts believe the firm is the best positioned among the Mag6 stocks to deal with a consumer slowdown.
“While the extent of the consumer slowdown may still be unclear, we believe some slowdown is more likely than not. This would mean less risk for Microsoft’s earnings estimates than the rest of the mega caps, making it the most likely of the Mag6 to become defensive.”
Moreover, the company is also reconsidering its capex plans, shunning investments that it believes may be overkill in the backdrop of DeepSeek AI revelations.
“Evidence has emerged that Microsoft is now offloading less desirable capex to CoreWeave, Oracle and Softbank. We believe that Microsoft has decided to reduce capacity for OpenAI training in its data centers, as it recognizes their gains from pretraining have begun to hit a wall.”
Microsoft is second on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 317 hedge fund portfolios held MSFT at the end of the fourth quarter, which was 279 in the previous quarter. While we acknowledge the potential of MSFT as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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