High-flying growth stocks are still in play despite the market nearing all-time highs. Many well-known growth stocks are still recovering from the bear market that lasted through most of 2022 and into 2023, making them attractive investment opportunities. Additionally, sector-specific catalysts like the demand for artificial intelligence products, the rebound in online advertisements, and robust consumer spending are driving growth in many stocks.
Furthermore, growth stocks are expected to benefit from the Federal Reserve’s plans to lower interest rates later in 2024 and into 2025. Here are three Wall Street favorites with strong buy ratings for May 2024:
Broadcom (AVGO): Wall Street analysts view chipmaker Broadcom as a strong buy, with a median price target of $1,571.55, suggesting an 18% upside from current levels. The company is expected to benefit from continued demand for microchips and semiconductors, especially those used in artificial intelligence models. Broadcom’s next earnings report is scheduled for June 12, and investors may want to consider taking a position before the results are released.
Amazon (AMZN): E-commerce giant Amazon is also rated a strong buy by analysts, with a median price target of $220, nearly 20% higher than the current share price. The company’s first-quarter financial results were exceptional, driven by growth in online advertising and cloud computing. Operating income surged over 200%, showcasing the effectiveness of Amazon’s cost-cutting measures. Despite the positive performance, Amazon has yet to declare its first quarterly dividend payment to shareholders.
Eli Lilly & Co. (LLY): Pharmaceutical giant Eli Lilly & Co. has seen significant growth in its stock, rising about 80% in the last year and over 550% in the past five years. Analysts remain bullish on the stock, rating it a strong buy with a median price target of $891.59, representing a 17% increase from current levels. The company’s weight-loss drug, Zepbound, has shown strong sales potential, with analysts predicting it could become the biggest-selling drug of all time.
Overall, these three growth stocks present compelling investment opportunities for investors looking to capitalize on the market’s current trends and potential for growth.