September has seen a shaky start for the U.S. stock market with certain economic indicators showing signs of weakness. Despite this short-term noise, investors seeking potential stock picks may find guidance from top Wall Street analysts valuable. These analysts conduct in-depth research to evaluate a company’s ability to navigate challenges and achieve sustainable growth over the long term. According to TipRanks, a platform that ranks analysts based on their past performance, top pros on the Street have provided recommendations for three stocks worth considering. One of the picks for this week is Planet Fitness (PLNT), a franchisor and operator of over 2,600 fitness centers. The company recently revealed better-than-expected results for the second quarter and reiterated its full-year guidance. Key to this strong performance was attributed to the strength of the company’s asset-light franchise model. Baird analyst Jonathan Komp recently reaffirmed a buy rating on PLNT stock with a price target of $92. Komp’s optimistic outlook is fueled by the company’s initiatives under new leadership and other growth drivers. CEO Colleen Keating is focused on enhancing return on invested capital for new units through strategies such as higher pricing, reduced capital expenditure, and extended remodel timelines. Komp, ranking No. 266 among over 9,000 analysts tracked by TipRanks, has a profitable track record with an average return of 15.1%.
Ross Stores (ROST)
Moving on to the off-price retail chain Ross Stores (ROST), the company reported strong results for the second quarter driven by its enhanced value offerings that attracted customers. Ross Stores raised its full-year earnings guidance to reflect the demand for its discounted products and additional efficiencies. Following the positive Q2 performance, TD Cowen analyst John Kernan reiterated a buy rating on the stock and increased the price target to $185 from $173. Kernan anticipates that the company’s enhanced merchandising efforts will result in upside for the second half of the year. He highlighted management’s initiatives to strengthen value offerings and introduce more branded merchandise, particularly in categories like ladies apparel and cosmetics, as driving factors behind the company’s consecutive sales growth. Kernan also noted that Ross Stores’ margins and earnings are benefiting from merchandising improvements and cost-saving initiatives. With an expected operating margin expansion to over 13% by fiscal 2028, up from 11.3% in fiscal 2023, Kernan remains bullish on ROST. Ranking No. 795 among more than 9,000 analysts tracked by TipRanks, Kernan boasts a successful track record with an average return of 7.8%.
SentinelOne (S)
Among the top stock picks is cybersecurity provider SentinelOne (S), which posted strong results for the second quarter of fiscal 2025, achieving positive net income and earnings per share on an adjusted basis for the first time. With an upgraded full-year revenue guidance driven by momentum and the strength of its AI-powered Singularity Platform, Baird analyst Shrenik Kothari reiterated a buy rating on SentinelOne stock with a price target of $29. Kothari highlighted the company’s robust Q2 performance, noting a 32% growth in annual recurring revenue fueled by new business and expansion within the existing customer base. Despite a challenging macro environment, the company remains optimistic about improved net-new ARR in the second half of the year. The upgraded outlook reflects strengthened pipeline retention and enhanced win rates, supported by advancements in the company’s go-to-market strategy. Kothari emphasized SentinelOne’s resilience amid competition, indicating a growing interest in the company’s platform post the July IT outage led by rival CrowdStrike. With a strong RPO growth of 40% year-over-year, Kothari believes SentinelOne is well-positioned for potential upside. Ranked No. 233 among more than 9,000 analysts tracked by TipRanks, Kothari’s profitable ratings have delivered an average return of 22.1%.
The insights and recommendations provided by top Wall Street analysts offer valuable guidance for investors seeking stock picks with growth potential. By analyzing companies like Planet Fitness, Ross Stores, and SentinelOne, investors can gain a better understanding of the factors driving these businesses and their potential for long-term success in the market.