Earnings season is in full swing, and the results of tech giants and industry leaders have a significant impact on the direction of the market. While these updates provide key insights into the performance of individual companies, investors should keep in mind that their investment decisions should not be based solely on one quarter's results.

Instead, they can consider the recommendations of leading Wall Street analysts who conduct in-depth analysis of company fundamentals and can thus identify stocks with solid long-term growth potential.

Here are three stocks that are favorites of top professionals, according to TipRanks, a platform that rates analysts based on their past performance.

Alphabet $GOOG+1.5%

Alphabet

GOOG

$163.24 $2.43 +1.51%

Capital Structure

Market Cap

2.0T

Enterpr. Val.

2.0T

Valuation

P/E

23.1

P/S

6.0

Open $160.85

Day range $159.66 - $161.63

52 week range $121.46 - $193.31

The first stock recommended is Google. The company recently reported second-quarter results that showed strength in its search and cloud business. However, YouTube ad revenue growth slowed and fell short of analysts' expectations.

Following the results announcement, BMO Capital analyst Brian Pitz reiterated his Buy recommendation on GOOGL stock with a target price of $222. The stock remains a top pick for BMO.

Pitz highlighted the positive effects of artificial intelligence within Alphabet's search business. He said that "the combination of higher query volume and lower processing costs means that the benefits of AI for search will be a long-term issue."

In addition, he raised his estimates for the cloud business for 2024 and 2025 to reflect AI-led gains. Pitz also pointed out that AI infrastructure and generative AI solutions for cloud clients have been adopted by more than 2 million developers and are already bringing in "billions" in revenue.

Despite YouTube's second-quarter revenue falling short of expectations, Pitz remains optimistic about the business. He believes YouTube is well positioned to benefit from the expected shift of a significant portion of the $150 billion in global linear TV ad money to the digital world. He also expects that YouTube's superior tools for content creators will boost its prospects.

ServiceNow $NOW+3.2%

ServiceNow

NOW

$919.25 $28.86 +3.24%

Capital Structure

Market Cap

183.4B

Enterpr. Val.

183.6B

Valuation

P/E

162.2

P/S

18.4

Open $887.76

Day range $882.30 - $899.71

52 week range $527.24 - $899.71

Next up is ServiceNow (NOW), a cloud software company that recently wowed investors with its strong second-quarter results. The workflow automation platform saw better-than-expected net new annual contract value (NNACV) and generative AI contributions. ServiceNow also raised its subscription guidance for 2024.

In response to the strong results and forecast, Goldman Sachs analyst Kash Rangan raised his target price for NOW stock to $940 from $910 and reiterated his Buy rating.

Shares rose 13% the day after ServiceNow released its quarterly report. The analyst said the rally following the results was an indication of renewed investor confidence in ServiceNow's ability to execute its go-to-market plan and in the quality and breadth of its platform, which clearly resonates with IT buyers despite more challenging macroeconomic conditions.

Rangan highlighted that the 22.5% constant currency growth in ServiceNow's current residual performance obligation, an indicator of future revenue, was led by robust NNACV and early contract renewals. He believes the acceleration of the residual performance obligation to 31% in Q2 2024 indicates the adaptability of the NOW platform across the enterprise.

Rangan is ranked 579th among more than 8,900 analysts tracked on TipRanks. His ratings have been successful 57% of the time, with an average return of 8.7%.

Travel + Leisure $TNL+3.6%

Travel + Leisure Co.

TNL

$44.19 $1.52 +3.56%

Capital Structure

Market Cap

3.0B

Enterpr. Val.

8.3B

Valuation

P/E

7.7

P/S

0.8

Open $42.14

Day range $42.14 - $43.26

52 week range $32.10 - $49.91

This week's third stock is Travel + Leisure (TNL), a membership and leisure travel company. TNL beat analysts' expectations for second-quarter earnings but missed revenue estimates. The company raised its full-year adjusted earnings before interest, taxes, depreciation and amortization guidance to reflect strong consumer demand for vacation ownership or timeshares.

On July 29, Tigress Financial analyst Ivan Feinseth reiterated his Buy rating on TNL stock and raised his price target to $58 from $54. Feinseth's upbeat view is supported by demand for vacation ownership. He also expects TNL to benefit from lower interest rates in the second half of this year and further rate cuts in 2025.

It expects TNL's earnings and cash flow to be driven by "a combination of property development, membership sales and increases in subscription fees and resort operations" amid strong travel trends.

Feinseth believes TNL's strategic partnership with Resorts Sports Illustrated and the launch of the Ultimate Sports-Themed and Active Lifestyle Resort Network are major catalysts for growth. He also expects the company to benefit from investments in technology, marketing partnerships and acquisitions, including the purchase of Accor Vacation Club.

Feinseth is ranked 235th among more than 8,900 analysts tracked on TipRanks. His ratings have been successful 60% of the time, with an average return of 12.8%.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source..