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We recently compiled a list of the 10 Stocks That Became Analyst Favorites This Week. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against the other analysts favorites.
US stocks registered a green day on Tuesday with the Dow surging up 538 points to end 1.24% higher. S&P 500 and Nasdaq also posted gains of 0.88% and 0.64% respectively, showcasing the strength of the American economy.
As for individual stocks, analysts continue to evaluate businesses based on any public information they can gather. Some of these insights turn into stock upgrades or downgrades while others reiterate the positive or negative outlook on the stocks. We came up with a similar list of stocks that have received analyst approval this week.
To come up with the list of 10 stocks moving on analyst optimism, we considered stocks with a market cap of at least $10 billion.
A software engineer at work, surrounded by a wall of computer monitors connected to a 'Data Cloud' platform.
Snowflake Inc. (NYSE:SNOW)
Snowflake provides a cloud-based platform that helps in data processing and warehousing while streamlining and simplifying workflows in various industries. The company’s price target was raised from $190 to $210 by Wedbush Securities.
Snowflake will continue to be a beneficiary of the AI spending boom, which is now further strengthened by Donald Trump’s focus on investing more in the sector. Analysts believe the company will gain market share this year in a market that could be as big as $2.3 trillion in 10 years from now.
The stock is down 50% from its all-time highs hit 3 years ago. As a stock that could benefit from increased AI spending by other companies, there is a lot of value to be had at these levels.
Overall SNOW ranks 1st on our list of the stocks that became analyst favorites this week. While we acknowledge the potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.