Driven by the excitement around artificial intelligence, the tech-heavy Nasdaq index has soared to extremely high valuations. These elevated valuations indicate that investors should be more cautious in selecting individual stocks.  

With valuations for previously successful stocks becoming more extended, investors should focus on uncovering the next hidden gems.  One approach to uncovering these potential high-growth stocks is by analyzing consensus analyst ratings and price targets.  

By seeking out strong buy recommendations, investors can find stocks that garner the most positive sentiment from analysts. 

We have further refined this approach by incorporating Wall Street’s price targets. This approach helps uncover NASDAQ stocks with significant upside potential, offering a data-backed viewpoint for investors in search of future success stories. 

Here are five underrated NASDAQ stocks that Wall Street is bullish on:  

Wall Street bullish stock no. 1: Patterson-UTI Energy (PTEN) 

Patterson-UTI Energy (PTEN) is a leading provider of drilling and completion services for oil and gas companies. Wall Street anticipates nearly a 40% return in PTEN’s stock over the next year.  

Rising oil and gas prices benefit Patterson-UTI Energy, as exploration and production companies increase their activities to take advantage of these profitable prices. 

Responding to the price surge, oil and gas producers are expected to significantly increase drilling activity in the coming months. This translates to a higher demand for Patterson-UTI’s services, boosting their revenue and profitability. 

Wall Street bullish stock no. 2: DexCom (DXCM) 

DexCom (DXCM) is a leading name in continuous glucose monitoring (CGM) technology. Wall Street sees a 30% upside for the stock over the next 12 months.  

2023 saw the largest expansion of coverage in DexCom’s history, making their CGM technology more accessible to patients. The introduction of Dexcom G7 in the US and international markets received a positive response, contributing to the company’s success. 

As awareness of CGM increases and access improves, DexCom is expected to see continued growth in sensor sales, a key revenue driver. With a strong track record, innovative products, and a growing market, DexCom is well-positioned to maintain its leadership position in the CGM market and deliver continued growth for investors.  

Wall Street bullish stock no. 3: Royalty Pharma (RPRX) 

Royalty Pharma (RPRX) is the leading biopharmaceutical royalty company. Wall Street expects RPRX’s stock price to rise by 45% in the next year. It also pays a solid 2.7% dividend yield. 

Royalty Pharma is one of the more unique names on the list. Its business model thrives on acquiring royalties and revenue interests tied to successful drugs from pharmaceutical and biotech companies. This provides a recurring revenue stream, with minimal operational risk and high visibility into future cash flows. 

Wall Street bullish stock no. 4: VinFast Auto (VFS) 

VinFast (VFS) is a Vietnam-based electric vehicle (EV) manufacturer with ambitious plans that should translate to rapid growth. Wall Street expects nearly 80% upside over the next year for VFS’ stock.  

VinFast has quickly established itself as a major player in the Vietnamese market, becoming the country’s top-selling car brand in just two years. VinFast took advantage of the growing demand for EVs in Vietnam, thereby establishing its leadership position in the emerging market.  

VinFast is actively expanding its operations into international markets—this global reach opens up significant growth potential for the company. 

Wall Street bullish stock no. 5: Exact Sciences Corp (EXAS)  

Exact Sciences (EXACT), a leading player in the field of molecular diagnostics, is making waves in the healthcare industry with its focus on early cancer detection. Wall Street expects over 55% upside for the stock in the next 12 months.  

Exact Sciences initially focused on colorectal cancer, a widespread and frequently fatal disease. The company’s success with its successful product Cologuard has fueled its growth and expansion into other areas of cancer detection.  

Through acquisitions and internal development, Exact Sciences now offers a suite of tests targeting various cancers, including lung, prostate, and breast cancer. 

Bottom line 

While past performance doesn’t guarantee future success, analyzing current trends and expert opinions can help investors navigate the ever-changing market landscape. We combined insights and Wall Street ratings to find the five Nasdaq stocks that hold impressive potential for future growth.  

E-commerce giant Amazon (AMZN) joined the Dow Jones Industrial Average (DJIA) on Monday, replacing Walgreens Boots Alliance (WBA).  

The move reflects the evolving US economy with its focus on technology and e-commerce. However, while the Dow Jones boasts stability and resilience in downturns, it can lag in bull markets.  

Notably, the S&P 500 soared 26% in 2023 while the Nasdaq soared 45%. By contrast, the Dow underperformed but still posted a respectable 16% gain. 

But the Dow does have a “secret weapon.” Low-beta stocks which are by definition less volatile than the market, offering stability during turbulent times. 

While you might not be interested in buying a Dow Jones ETF or index that tracks it, the additions and deletions remain a bellwether of industry trends. Need a good defensive stock that can weather any recessionary environment?  

Here are the three best Dow Jones stocks investors can buy.  

Best Dow Jones stock no. 1: Microsoft (MSFT) 

Microsoft, a household name synonymous with software markets—and a renewed effort to pivot toward artificial intelligence, is perhaps the top contender in the Dow Jones index. It has a long history of consistent growth and profitability, operating in multiple high-growth areas, such as cloud computing, software, and gaming. 

But what makes it stand out among its Dow peers? 

Microsoft has transcended its traditional software roots. Its product portfolio now encompasses productivity tools (Office 365), gaming (Xbox), professional networking (LinkedIn), and more. This diversification mitigates risk by reducing reliance on any single product or market. 

Microsoft boasts a remarkable track record of consistent revenue and earnings growth. And it sits on a mountain of cash reserves, boasting one of the healthiest balance sheets in the industry.  

Microsoft has consistently increased its dividends, though it has not yet reached the ‘dividend aristocrat’ status. This would requires at least 25 consecutive years of dividend increases, meaning Microsoft may join the elite group by the end of the decade. 

Best Dow Jones stock no. 2: UnitedHealth Group (UNH) 

UnitedHealth (UNH) is a top Dow Jones stock in the defensive healthcare sector. The company is the largest health insurer in the US by revenue, giving it significant market power. It’s a relatively recession-resistant industry and comes with a 1.7% dividend yield.  

With a significant stock price of $520, UnitedHealth plays a prominent role in the Dow’s performance. This is because the index is price-weighted, meaning companies with higher stock prices have more influence in the index’s performance.  

Given that healthcare remains essential even during economic downturns, UnitedHealth should continue to benefit from stable demand, making it a resilient investment. 

And through Optum, its health services arm, it offers pharmacy benefit management, care delivery, and data analytics. This diversification mitigates risk and creates additional revenue streams, fueling its growth engine. 

Best Dow Jones stock no. 3: Visa (V) 

Visa (V) is the global payments giant that operates in over 200 countries. It’s a well-known and trusted brand. The beauty of Visa is its very profitable business model with high margins. 

And unlike traditional banks, Visa doesn’t hold credit risk. Instead, it acts as a facilitator, earning fees on each transaction processed. This lightweight model minimizes financial exposure and allows for high operating margins.  

This translates to a staggering 3.6 billion cards in circulation, processing over $11 trillion in transactions annually. This immense reach creates a powerful network effect, attracting more users and merchants, and further solidifying Visa’s position. 

While Visa has a solid history of increasing its dividend, it does not yet meet the ‘dividend aristocrat’ criteria which requires 25 years of consecutive increases. At its current pace though, investors can expect to see its inclusion as an aristocrat in 2033. 

Bottom line 

Being in the Dow is more about prestige than fund flows. However, its components are generally strong defensive bets on the US market. Microsoft, UnitedHealth, and Visa are the three best Dow stocks you can own today.  

Cybersecurity giant Palo Alto Networks (PANW) experienced a turbulent week, with shares plummeting 30% after its latest earnings report – a record-breaking one-day drop.  

The end result was Palo Alto’s stock plummeting from nearly $380 to $260. The culprit?  Lowered revenue expectations and a strategic shift towards”platformization.” Management cautioned investors its full-year billings guidance will now come in at $10.2 billion compared to a prior outlook of $10.8 billion. Similarly, revenue guidance was revised from $8.2 billion to $8 billion. 

The strategic shift, coupled with a disappointing outlook, has introduced uncertainty among investors. By contrast, other tech firms like Nvidia (NVDA) made it clear to investors in its highly anticipated Q4 report it offers a clearer growth profile. 

However, beyond the initial shockwaves, lies a more nuanced picture with potential long-term opportunities.  

Here are 3 reasons why Palo Alto might still be worth considering after the dip: 

Reason No.1: Growth engine still roaring 

Let’s be clear: the earnings miss stung. But despite the stumble, Palo Alto remains a growth company at its core.  

Second-quarter revenue beat analyst estimates and grew 19% year-over-year, showcasing continued momentum. While lowered guidance suggests near-term pressure, the company’s long-term growth trajectory remains positive. 

Here’s why: Platform Power. Palo Alto’s pushing customers to use multiple products (platforms), and it’s working.  

The company’s strategic platformization holds promise, with customers using multiple platforms demonstrating significantly higher lifetime value, potentially fueling future growth. 

Customers using two platforms exhibit a 5x increase in lifetime value compared to single-platform users. This value jumps to 40x for users of three platforms. 

And Palo Alto is offering more incentives, such as free products to continue its push toward platformization.  

So despite the recent hiccup, Palo Alto’s core growth story remains intact.  

Reason No. 2: AI still promises to be the next major growth driver 

Broader economic concerns, such as rising interest rates and potential recessionary fears, dampen investor sentiment and cast a shadow over technology stocks like Palo Alto. 

However, artificial intelligence remains a bright spot.  

Palo Alto’s pioneering use of AI in security products is a game-changer. Its innovative XSIAM platform generates $100 million in annual recurring revenue, showcasing the financial impact of AI in security. Notably, Palo Alto is the first AI security company to hit this milestone.  

And it’s not just about revenue: AI is also helping Palo Alto slash its own service costs by 50%, with plans to automate 90% of manual interventions.  

This first-mover advantage, coupled with cost-saving benefits from AI-driven automation, positions them well to capture a growing market and improve efficiency. 

Reason No. 3: Short-term pain for long-term growth 

The lowered expectations reflect concerns about a broader cybersecurity spending slowdown. In response, Palo Alto has introduced aggressive incentives, such as offering products at half price for the first year. The goal here is to secure long-term customer satisfaction and commitment. 

While this might seem risky, it’s a strategic move to lock in long-term, multi-year deals, securing future revenue streams. This bold approach to market share growth could pay off in the long run. 

The company has the balance sheet to support such contracts, which will ultimately allow it to lock in long-term, multi-year deals.  

Bottom Line 

Palo Alto’s recent dip was undoubtedly painful. However, the company’s strong fundamentals, strategic platformization, AI-powered advancements, and aggressive growth initiatives paint a brighter long-term picture.  

Given the long-term potential, investors may find Palo Alto an attractive addition to their portfolios after performing due diligence. 

While headlines paint a bleak picture for brick-and-mortar retail, a handful of savvy players are defying the odds. Forget ‌Amazon’s dominance – and perhaps now Temu’s emerging presence – the truth is, the US retail market is set to boom. 

Fueled by a strong labor market, easing inflation, and resilient consumers, this sector is poised for continued growth. Retail sales are increasing as more people shop in stores, and easing inflation is boosting market prospects and profitability.  

Wall Street’s misplaced recession fears have created attractive buying opportunities. Here are five physical retailers that are worthy of a spot in most portfolios:  

1: Home Depot (HD) 

When it comes to home improvement giants, Home Depot (HD) stands tall, serving both DIY enthusiasts and professional contractors through its expansive network of warehouse-style stores. 

With a robust online presence and a consistent track record of growing sales and earnings, Home Depot has established itself as a dominant force in the industry. 

Home Depot’s business benefits from the less cyclical nature of improvement spending, providing stability even during economic downturns as people always need to maintain and repair their homes.  

2: Ulta Beauty (ULTA) 

Ulta Beauty (ULTA) isn’t just your average beauty retailer. Sales dipped during the pandemic, but Ulta understands that experience is key. Their in-salon services add value and foster deeper customer connections, driving repeat business.  

Additionally, their expanding loyalty program further incentivizes purchases and strengthens brand affinity. Ulta has become more than a store; it’s a destination combining product discovery with personalized in-store salon experiences.  

3: Target (TGT) 

The discount retail segment is dominated by two rival giants: Walmart (WMT) and Target (TGT). While both offer value-driven products, Target is the more appealing pick.  

Target, with its superior valuation, has been named Goldman Sachs’ top retail pick for 2024. Target’s stock currently trades at roughly 20x earnings, while Walmart trades at 30x. As well, Target pays a 2.8% dividend yield, compared to Walmart’s 1.4%.  

4: Costco (COST)  

Costco (COST) stands out in the retail landscape with its unique membership-based, bulk-buy model. This seemingly unconventional approach has fueled impressive growth, doubling sales and quadrupling EPS in the past decade. 

This growth, driven by a loyal membership base and recurring revenue via annual membership fees, is expected to continue and drive future profits. 

5: Dollar Tree (DLTR) 

In the realm of value shopping, Dollar General (DG) and Dollar Tree (DLTR) reign supreme. Both offer deep discounts, but their strategies and current prospects do differ. 

Dollar General has almost 20,000 stores, making it the largest player in this space. Dollar Tree, however, represents a compelling turnaround story with significant upside potential. It operates 15,000 stores across the US, carrying a “five and dime” and dollar store legacy.  

Dollar Tree, which has a more attractive valuation than Dollar General, is expected to grow earnings per share over the next three years with the help of margin improvement.   

Bottom Line  

The retail sector offers investors unique investment opportunities, catering to various investment goals and risk tolerances. Ultimately, the best retail stock for you depends on your individual investment goals. 

Seeking stability and reliable returns? Consider Home Depot and Costco. Open to ‌growth at attractive valuations? Ulta, Target, and Dollar Tree offer intriguing options.  

When you think of meme stocks, you think of amateur investors rallying online, sending obscure companies skyrocketing, and hedge funds scrambling. But meme stocks have come a long way since early 2021.  

Meme stocks today are more like momentum plays. Whether you’re a seasoned investor or just curious about the trend, there are still meme stocks that can add marked upside to portfolios. Here are the 5 best meme stocks that are still worth owning:  

Meme Stock No. 1: Super Micro Computer (SMCI) 

Super Micro Computer (SMCI) has soared 700% in the past year, fueled by the artificial intelligence boom and its server solutions for data centers.  

This meteoric rise resembles a meme stock, but is there more to it than just hype? 

Demand for chips, driven by server and storage needs for AI, is expected to propel SMCI’s future success. SMCI boasts a full-stack IT infrastructure, a first-mover advantage in liquid cooling, and an engineering-driven leadership team. All of this should translate into some wide-moat advantages. 

Meme Stock No. 2: Palantir (PLTR)  

Palantir’s (PLTR) journey has been unconventional, evolving from a meme stock darling to a company with genuine growth potential. While once fueled by online hype, this big data analytics company has shifted its focus toward sustainable growth and profitability. Palantir boasts four consecutive profitable quarters and looks set to achieve a fifth. 

Palantir isn’t just a government data cruncher anymore. Its commercial revenue is soaring, with a 70% year-over-year increase to $131 million in the fourth quarter while commercial revenue grew 20% year-over-year to $1 billion. The company’s new AI platform is attracting customers, adding further fuel to its growth engine. 

Meme Stock No. 3: Advanced Micro Devices (AMD) 

While Advanced Micro Devices (AMD) once enjoyed meme stock status, it has evolved into a formidable player in the semiconductor industry with solid fundamentals.  

AMD boasts impressive growth, with revenue surging 45% in 2020, 68% in 2021, and 44% in 2022 for a 52% compounded annual growth rate (CAGR). 

AMD is now poised to ride the AI wave with its data center segment expected to reach $3.5 billion in sales this year, exceeding previous estimates by $1.5 billion. The company’s new MI300X AI chip and customer utilization platform position it to capture further market share and potential growth. 

Meme Stock No. 4: Tilray Brands (TLRY) 

Tilray Brands (TLRY), the cannabis company, trades near penny stock territory, raising concerns about its viability. However, its low price and unique strategy are worth a closer look.  

Despite trading at a low market cap and per-share value, Tilray is not purely a speculative play. It boasts a book value of $0.40 per share, implying its assets exceed liabilities, unlike many penny stocks. 

Plus, Tilray is diversifying beyond cannabis with recent acquisitions of craft beer brands. This should position them well for the potential legalization of cannabis-infused beverages, offering a head start in a potentially lucrative market. 

Meme Stock No. 5: Rivian Automotive (RIVN) 

Rivian is carving out its niche in the booming electric vehicle market. Rivian, often compared to Tesla, occupies a unique space in the EV market, focusing on large SUVs and pickup trucks.  

Rivian exceeded its 2023 production guidance, delivering over 50,000 vehicles. However, it’s stock price has fallen, currently trading at the lower end of analyst forecasts. 

Rivian presents an interesting opportunity for investors seeking exposure to the booming EV market with a niche focus.  

Bottom line  

The meme stock phenomenon continues to captivate investors, offering the potential for explosive gains but also bringing some risks.  

Several companies previously associated with the meme stock frenzy have evolved, showcasing promising fundamentals and potential for long-term growth. However, it’s important to remember that not all meme stocks are created equal, and careful evaluation is crucial before investing. 

Nvidia (NVDA) posted record quarterly revenue when it released recent earnings. Its quarterly revenue came in at $22.1 billion, rising 22% quarter-over-quarter and 265% year-over-year.  

The stock is nearly up 60% year-to-date and soared over 15% after the earnings announcement briefly hitting a $2 trillion market cap. This comes after 2023 was already a record year for the tech titan.  

There’s more on the horizon for Nvidia, here’s why:  

The AI golden ticket  

Nvidia’s stock has seen significant growth in recent years driven by increasing demand for graphics processing units (GPUs) for gaming and now artificial intelligence.  

GPUs, traditionally used for video games, are ideally suited for handling the complex calculations required for AI tasks like training deep learning models.  

Nvidia has capitalized on the AI trend early on, establishing itself as the go-to supplier for AI hardware. Its powerful GPUs, like the A100 and H100, are the engines driving some of the most advanced AI projects globally. 

Data center revenue for Nvidia rose 409% year-over-year last quarter to $18.4 billion. Sales jumped fivefold year-over-year, driven by Nvidia Hopper chips for AI models and applications. Large cloud providers contributed over half of the revenue. 

This leadership position translates to a staggering 80-95% market share, giving Nvidia a significant advantage over competitors like AMD and Intel. 

Tapping other AI markets   

Analysts have drawn parallels between Nvidia’s current success and the picks and shovels providers during the gold rush of the 1800s, as Nvidia’s chips are used by almost all generative AI players from ChatGPTmaker OpenAI to Google.  

This has helped the company vault from $1 trillion to $2 trillion in market value in around eight months—the fastest among U.S. companies and in less than half the time it took tech giants like Apple to achieve the same feat. 

But Nvidia’s not just selling shovels in the AI gold rush. It’s also actively participating in the mining process. The company develops its own AI software and frameworks, like DeepStream and NVIDIA Triton Inference Server, creating a comprehensive AI ecosystem.  

This vertical integration strengthens its position and allows it to capture more value from the AI revolution. 

As AI adoption explodes across industries, from self-driving cars to healthcare, the demand for high-performance GPUs is skyrocketing. 

Beyond AI: Diversification Pays Off 

While AI is undoubtedly a major driver, Nvidia’s success isn’t solely dependent on it. It still enjoys a strong presence in other key tech markets, like gaming and professional visualization.  

Its GeForce RTX series GPUs are the gold standard for PC gamers, and its professional GPUs power workstations used in various industries, from engineering to design. 

This diversification provides a safety net, mitigating risks associated with potential fluctuations in the AI market. The recent recovery in the PC market, with PC shipments rising for the first time in over a year, further bolsters Nvidia’s financial stability. 

What could go wrong?  

On the flip side, the expectations are huge for Nvidia. However, supply chain constraints can hamper production and competition from AMD and Intel is heating up. Additionally, the high valuation of the stock raises concerns about potential overvaluation. 

However, the long-term outlook remains positive. The AI market is projected to grow at a staggering 37% CAGR until 2030, creating ample opportunities for Nvidia. The company’s focus on innovation, its strong brand recognition, and its diversified revenue streams position it well to capitalize on this growth. 

Bottom line 

For investors seeking exposure to the AI revolution, Nvidia is a compelling option. Nvidia’s momentum in the booming AI market will continue as cloud computing companies boost their capital expenditures to meet AI interference demand.