Wall Street analysts' top 20 stocks: NVIDIA and AMD impress with return on capital

Wall Street analysts' top 20 stocks: NVIDIA and AMD impress with return on capital

Research shows that stocks of chip companies and AI players NVIDIA and AMD are among Wall Street analysts' favorites. Both companies impress with high proportions of buy recommendations and returns on investment. Every day, Wall Street experts evaluate numerous stocks, which can have a direct impact on price movements. The stock market portal “MarketWatch” analyzed the top 20 stocks from Wall Street analysts in the S&P 500 based on the share of buy recommendations and took into account the expected sales and profit growth by 2025.

At the top of the top list are the shares of the veterinary drug manufacturer Zoetis with a share of 89 percent of buy recommendations. Analysts forecast annual revenue growth of 7.3 percent and profit growth of 12.8 percent through 2025. NVIDIA, an AI profiteer, is in 18th place with a buy rate of 88 percent. Analysts see an upside potential of 12.7 percent with an expected price of $989.01 within 12 months. The sales forecast for NVIDIA through 2025 is an annual growth of 51.9 percent and a profit increase of 69.2 percent per year.

AMD, recently dubbed "mini-NVIDIA" by one analyst, is in sixth place with a buy rating of 80 percent. The upside potential for AMD stock is 28.0 percent based on a current price of $157.39 and an average price target of $201.42. AMD is expected to grow its revenue and EPS over the next few years. For the top 20 stocks, MarketWatch experts also examined each company's return on capital, with NVIDIA having the highest five-year average return at 1,547 percent and AMD at 430 percent.

In addition, MarketWatch found that energy companies, communications services companies and financial companies in the S&P 500 were particularly strong returns this year, while consumer staples and real estate companies posted weaker returns.