3 New Strong Buy Ratings from Top-Rated Analysts: 02/21/2025
With WallStreetZen's Strong Buys from Top Analysts feature, you get high-conviction stock ratings from the best stock analysts in the world. Here’s a peek at what we’re watching RN:
- Sonic Automotive Inc (NYSE: SAH) is a Strong Buy following its most recent earnings report.
- Looking for a "safer" stock? Republic Services Inc. (NYSE: RSG) might fit the bill.
- Uber Technologies (NYSE: UBER) looks unstoppable ... Is it?
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1- Sonic Automotive Inc (NYSE: SAH)
Sonic Automotive is the 5th largest automotive retailer in the United States. On top of a coast-to-coast network of dealerships, the business also operates a rapidly expanding used car segment, EchoPark. By leaning into high-margin pre-owned vehicles and investing in digital retailing, the company has successfully capitalized on the constant need for affordable, late-model used vehicles.
Zen Rating: A (Strong Buy) — see full analysis >
Recent Price: $74.07 — get current quote >
Max 1-year forecast: $100.00
Why we’re watching:
- Sonic Automotive is a consensus Strong Buy — Wall Street analysts have issued 3 Strong Buy ratings, 2 Buy ratings, and 1 Hold rating for the stock. See the ratings
- Jeff Lick of Stephens & Co. (a top 26% rated analyst) recently reissued a Strong Buy rating for SAH stock.
- The analyst increased his price target from $83 to $92 after the company released its Q4 and FY 2024 earnings report on February 12.
- Both earnings and revenues came in above analyst estimates in the quarter.
- Lick advised "investors looking to play a recovering U.S. new vehicle environment" to "look closely" at Sonic Automotive despite the company's lower liquidity and market valuation.
- With a Zen Rating of A (Strong Buy), SAH belongs to a class of equities that provide an average annual return of 32.52%.
- Jeff Lick was certainly right about the stock’s status as a value play — Sonic Automotive’s Value Component Grade rating is B — to be more precise, in this category, it ranks in the top 6% of all the stocks we track. (See all 7 Zen Component Grades here >)
2- Republic Services Inc. (NYSE: RSG)
Republic Services Inc. isn’t just picking up trash — it’s cashing in on the ever-growing demand for waste management, recycling, and sustainability solutions. With steady revenue growth, strong pricing power, and a recession-resistant business model, RSG stock looks like a rock-solid bet in an economy that will never stop producing garbage.
Zen Rating: B (Buy) — see full analysis >
Recent Price: $228.55 — get current quote >
Max 1-year forecast: $265.00
Why we’re watching:
- Zero Sell or Strong Sell ratings among the analysts we track — just a sea of Strong Buy, Buy, and a few Hold ratings. See the ratings
- Why are analysts so bullish? Let’s look at Michael Hoffman of Stifel Nicolaus, a top 3% analyst who maintains a Strong Buy rating and just upped their price target from $240 to $257 following the company’s earnings report.
- Hoffman hiked their price target following the company's "strong FY 2024 finish" and management's "bullish" FY 2025 guidance.
- Further, the analyst predicted strong price and Y/Y margin growth for both business sectors in every quarter for FY 2025.
- With an overall B (Buy) Zen Rating, RSG is ahead of the pack — it’s in a category with stocks we track that have historically delivered 19.88% annual returns.
- SAFETY is the name of the game with RSG — it earns an A Component Grade for safety, suggesting it’s a stock that has the potential to remain stable in the face of fluctuating market forces. (See all 7 Zen Component Grades here >)
3- Uber Technologies (NYSE: UBER)
With notable investors like Bill Ackman and partnerships with companies like Waymo to integrate AVs into its platform, Uber is poised to capture plenty of upside in the coming weeks and years. Keep reading to learn more.
Zen Rating: B (Buy) — see full analysis >
Recent Price: $81.49 — get current quote >
Max 1-year forecast: $115.00
Why we’re watching:
- A surge of Strong Buy support: 24 analysts we track issue ratings on UBER — and more than half of them are Strong Buy ratings. See the ratings
- For example, Thomas Champion of Piper Sandler (a top 10% analyst) recently reiterated a Strong Buy rating and raised their price target on the stock by 8.8% from $80 to $87 on 2/18.
- Champion explained that after meeting with Uber management, they raised their FY 2025 and 2025 EBITDA estimates slightly and, therefore, their price target.
- In addition, the analyst added that "Piper Sandler revisited new details on AVs that management provided in its Q4 and FY 2024 earnings supplemental materials" and concluded that "timing and capacity utilization are key factors that may work in Uber's favor, at least in the near term."
- Our Zen Rating system agrees with Champion that UBER is watchlist-worthy. It earns an overall B (Buy) rating, putting it in the top 20% of the 4600+ stocks we track.
- Even though UBER earns a C rating in Value according to our Zen Component Grades, it stands out in other areas — namely Financials, where the company is A-rated because of its balance sheet strength and other key financial stability indicators. We believe that strong financials are one of the biggest indicators of future exciting stock gains. (See all 7 Zen Component Grades here >)
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