In this article, we will take a look at the 5 Best S&P 500 Stocks to Buy Now According to Analysts. For a deeper discussion and analysis, please refer to the 14 Best S&P 500 Stocks to Buy Now According to Analysts.
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5. Thermo Fisher Scientific Inc. (NYSE:TMO)
Upside Potential as of June 14: 27.84%
Thermo Fisher Scientific Inc. (NYSE:TMO) provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in North America, Europe, Asia-Pacific, and internationally.
On June 11, Piper Sandler initiated coverage of Thermo Fisher Scientific Inc. (NYSE:TMO) with a ‘Neutral’ rating and a price target of $510. The assigned target represents an upside of over 8% from the current levels.
Piper Sandler began coverage of the life science tools sector with a cautious “feet in the shallow end of the pool” approach. However, it expects near-term improvements in the industry’s headwinds, including weak biotech and academic spending and exposure to China.
Piper wants to see stronger evidence of the sector’s next big growth catalysts before it can turn more bullish on the broader sector. The firm noted that although investors can buy multi-year growth compounding stocks at various stages of their growth cycles, it would rather wait a few more quarters for the sector to bounce back to the stronger performance levels that it had before Covid.
4. GE Vernova Inc. (NYSE:GEV)
Upside Potential as of June 14: 32.89%
GE Vernova Inc. (NYSE:GEV) engages in the provision of various products and services that generate, transfer, orchestrate, convert, and store electricity in the United States, Europe, Asia, the Middle East, and Africa.
On June 11, Jefferies analyst Julien Dumoulin-Smith lowered the firm’s price target on GE Vernova Inc. (NYSE:GEV) from $1,350 to $1,210, but maintained a ‘Buy’ rating on the shares. The trimmed target still reflects an upside potential of over 28% from the current share price.
The analyst firm acknowledged that the rising interest in behind-the-meter (BTM) power solutions is reducing the reliance on traditional grid connections in the near term. However, it believes that market concerns regarding the BTM adoption have become far more exaggerated when compared to the available tangible data.
Jefferies highlighted that GE Vernova Inc. (NYSE:GEV) has fallen by around 20% since hitting its all-time high earlier in April. However, the analyst expects the company’s Q2 order trends and Q3 outlook commentary to “strongly dispel concerns of eroded market power for gas turbines into the 2030s.”
GE Vernova Inc. (NYSE:GEV) was also recently included in our list of the 15 Best Nuclear Power Stocks to Buy According to Wall Street Analysts.
3. AppLovin Corporation (NASDAQ:APP)
Upside Potential as of June 14: 33.86%
AppLovin Corporation (NASDAQ:APP) enables businesses to advertise profitably with marketing technologies that attract customers, increase revenue, and track ad performance. The company provides end-to-end software and AI solutions for businesses to reach, monetize, and grow their global audiences.
On June 5, Edgewater Research upgraded AppLovin Corporation (NASDAQ:APP) from ‘Neutral’ to ‘Outperform’. The analyst, however, did not assign the stock a price target.
Similarly, earlier on June 2, Citi also added an “upside 90-day catalyst watch” on AppLovin Corporation (NASDAQ:APP). The analyst firm maintained its ‘Buy’ rating on the stock and assigned it a $710 price target, indicating an upside of 43% from the current levels.
Citi believes that AppLovin’s estimates could see upward revisions as its e-commerce platform shifts to general availability by June 30. The analyst is of the view that a broader rollout may accelerate store growth and boost e-commerce revenue.
Citi also noted that the company seems to have ramped up its marketing efforts for Axon ahead of the general launch, as Axon.ai recently secured sponsorships for both the All-In podcast and Founders podcasts. The analyst firm expects AppLovin to further increase its marketing efforts ahead of the general launch later this month.
2. Oracle Corporation (NYSE:ORCL)
Upside Potential as of June 14: 34.42%
Oracle Corporation (NYSE:ORCL) is a global leader in AI, delivering the cloud infrastructure, data, and applications that organizations across the world trust to successfully achieve business outcomes at scale.
On June 11, DA Davidson boosted its price objective on Oracle Corporation (NYSE:ORCL) from $200 to $225, while keeping a ‘Buy’ rating on the shares. The implied target represents an upside of over 22% from the current levels.
The move comes after Oracle exceeded top and bottom line estimates in its Q4 report on June 10. Notably, the company’s cloud infrastructure revenue jumped 93% YoY to $5.8 billion, while its remaining performance obligation, including revenue that hasn’t been recognized, grew by 353% YoY and hit $638 billion on May 31.
Oracle Corporation (NYSE:ORCL) reaffirmed its prior revenue guidance of $90 billion for FY 2027. However, the company raised its adjusted earnings forecasts to $8.05 per share, marking a YoY growth of 18%. This is up from the projections of $8.01 per share in earnings and $88.9 billion in revenue by analysts. The cloud computing firm also remains confident in its long-term, financial targets, which include a plus 31% revenue CAGR and a plus 28% EPS CAGR through the fiscal year 2030.
1. KLA Corporation (NASDAQ:KLAC)
Upside Potential as of June 14: 675.91%
Topping our list of the Best Large Cap Stocks According to Analysts is KLA Corporation (NASDAQ:KLAC). It develops industry-leading equipment and services that enable innovation throughout the electronics industry. The company provides advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, and printed circuit boards.
On June 11, Barclays analyst Tom O’Malley raised the firm’s price target on KLA Corporation (NASDAQ:KLAC) from $1,750 to $2,250, while maintaining an ‘Overweight’ rating on the shares. The target boost indicates a massive upside of 784% from the current price level.
The move comes after Barclays lifted its forecasts for the wafer fabrication equipment sector, citing a capex cycle that is significantly stronger across the board. According to the analyst, industry sales are expected to cross the $200 billion mark in 2027, although investor focus has already shifted towards growth expectations for 2028. As a result, Barclays raised its price targets across the wafer fab equipment group.
Similarly, earlier on June 10, Cantor Fitzgerald also upped its price target on KLA Corporation (NASDAQ:KLAC) from $2,000 to $2,500 and kept its ‘Overweight’ rating on the shares.
While we acknowledge the potential of KLAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KLAC and that has 100x upside potential, check out our report about the cheapest AI stock.
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