The U.S. stock market opened September on a shaky note, with various economic indicators displaying signs of weakness. However, amidst this volatility, investors seeking potential stock picks can turn to the insights of top Wall Street analysts. These experts delve deep into company research and evaluate their capability to navigate through challenges and deliver long-term growth. According to TipRanks, a platform that ranks analysts based on their past performance, there are three stocks highly favored by these esteemed professionals. One of these top picks for this week is Planet Fitness (PLNT), a franchisor and operator of over 2,600 fitness centers. The company recently announced results that surpassed expectations for the second quarter and reaffirmed its full-year guidance. Baird analyst Jonathan Komp gave a buy rating to PLNT stock with a price target of $92, tagging it as a “Bullish Fresh Pick.” He expressed optimism about the company’s initiatives under new leadership and other growth catalysts. Komp highlighted that management has taken steps to improve return on invested capital for new units through various strategies. With the goal of reinforcing the company’s position, CEO Colleen Keating is working on enhancing leadership, member experience, and marketing efforts.
Moving on to another promising pick, we have the off-price retail chain Ross Stores (ROST). The retailer reported strong results for the second quarter, drawing customers with its value offerings. Ross Stores raised its full-year earnings guidance to reflect the demand for its discounted products and additional efficiencies. Following the robust Q2 performance, TD Cowen analyst John Kernan reiterated a buy rating on Ross Stores stock and increased the price target to $185. Kernan anticipates that the company’s improved merchandising efforts will drive growth in the second half of the year. He emphasized management’s initiatives to strengthen value offerings and introduce more branded merchandise across various categories. These efforts have led to a surge in comparable sales over recent quarters. Additionally, Kernan noted that the company’s margins and earnings are benefiting from these merchandising initiatives and cost savings across different aspects of its operations. Looking ahead, the analyst is optimistic about ROST’s operating margin, expecting it to expand significantly by fiscal 2028.
The cybersecurity provider SentinelOne (S) reported outstanding results for the second quarter of fiscal 2025, marking the first time the company achieved positive net income and earnings per share on an adjusted basis. SentinelOne also raised its full-year revenue guidance, supported by strong momentum and the effectiveness of its AI-powered Singularity Platform. Post these results, Baird analyst Shrenik Kothari maintained a buy rating on SentinelOne stock with a price target of $29. Kothari highlighted the company’s impressive Q2 performance and the substantial growth in annual recurring revenue, driven by new business and solid expansion within the existing customer base. Despite a challenging macro backdrop, the company upgraded its full-year outlook, citing expectations of enhanced net-new ARR in the second half of the year. This revised outlook is based on stronger pipeline retention and improved win rates, bolstered by advancements in the company’s go-to-market strategy. Kothari also mentioned the potential benefits of SentinelOne from the July IT outage experienced by competitor CrowdStrike, indicating a shift in sentiment towards the company’s platform among major organizations.
By analyzing these top stock picks of September recommended by leading Wall Street analysts, investors can gain valuable insights into potential investment opportunities in various sectors. These recommendations are backed by in-depth research and assessments, offering investors a glimpse into companies that display promising growth prospects amidst the current market volatility.