Wall Street analysts are optimistic about the potential of these 3 stocks

September started on a rough note for the US stock market, with some economic readings showing signs of weakness.

Ignoring the short-term noise, investors looking for stock picks can consider the recommendations of top Wall Street analysts. These experts conduct research and assess a company’s ability to navigate adversity and generate long-term growth.

With that in mind, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Planet Fitness

This week’s first pick is Planet Fitness (PLNT), franchisor and operator of more than 2,600 fitness centers. The company recently reported better-than-expected second-quarter results and reiterated its full-year guidance. Management attributed the second-quarter performance to the strength of the company’s low-value franchise model.

Baird analyst Jonathan Komp recently reaffirmed a buy rating on PLNT stock with a price target of $92. The analyst has assigned the stock a new “Bullish Fresh Pick” designation as he is bullish on the company’s initiatives under new management and other growth factors.

The analyst noted that management has made efforts to increase return on invested capital for new units through higher prices, reduced capital expenditures and extended remodeling timelines. CEO Colleen Keating aims to further strengthen the company’s position by strengthening leadership, improving the member experience and improving marketing efforts.

In addition to new management, Komp cited several reasons for his bullish thesis, including Planet Fitness’ solid consumer value proposition and a high-margin franchise model that is expected to be resilient in a difficult macro environment.

The analyst added that “increasing cash return capacity and the array of factors in 2025E positions the stock well for a slower growth environment.”

Komp ranks #266 out of over 9,000 analysts tracked by TipRanks. Its ratings were profitable 56% of the time, delivering an average return of 15.1%. (See Planet Fitness stock charts on TipRanks)

Ross stores

We move to the off-price retail chain Ross stores (JOINT). The retailer reported upbeat results for the second quarter as it attracted customers with its improved value offerings. Ross Stores raised its full-year earnings guidance to reflect demand for its reduced offerings and additional efficiencies.

In reaction to the strong Q2 print, TD Cowen analyst John Kernan reaffirmed a buy rating on Ross Stores stock and raised his price target to $185 from $173. The analyst expects the company’s increased marketing efforts to match guidance for the second half of the year.

Kernan pointed out that management’s initiatives to strengthen Ross Stores’ value offerings and an increased mix of branded merchandise in certain categories, including women’s apparel and cosmetics, have fueled the company’s comparable sales over the past several quarters.

Kernan noted that the company’s margins and earnings are also benefiting from merchandising efforts and cost savings in its distribution, logistics and store networks. Overall, the analyst expects ROST’s operating margin to expand to over 13% by FY2028, from 11.3% in FY2023.

“We think ROST’s valuation discount to TJX is still too large (given similar growth and ROIC profiles), which could produce upside for ROST in the near term,” Kernan said.

Kernan ranks #795 out of over 9,000 analysts tracked by TipRanks. Its evaluations were successful 54% of the time, giving an average return of 7.8%. (See Technical Analysis of Ross Stores on TipRanks)

SentinelOne

Finally, there is the cyber security provider SentinelOne (S). The company reported market-beating results for the second quarter of fiscal 2025. This marked the first time the company delivered positive net income and earnings per share on an adjusted basis. SentinelOne also raised its full-year revenue guidance, supported by strong momentum and the strength of its AI-powered Singularity platform.

Following the results, Baird analyst Shrenik Kothari reiterated a buy rating on SentinelOne stock with a $29 price target. The analyst noted the company’s strong Q2 performance and 32% growth in annual recurring revenue, driven by new business and solid expansion in its existing customer base thanks to emerging cloud, data and AI products.

Kothari added that despite a challenging macro context, the company has upgraded its outlook for the full year with expectations of improved net-new ARR in the second half of the year. The improved outlook reflects stronger pipeline retention and better win rates, supported by notable progress in the company’s go-to-market strategy.

Commenting on expectations of SentinelOne benefiting from the July IT disruption led by the rival CrowdStrikeKothari believes the management is taking a “cautious” stance. Underscoring the resilience of SentinelOne’s offerings, management noted that there has been a shift in sentiment since the outage, with increasing interest in the company’s platform from some of the world’s largest organizations.

“Overall, S is doing well in the transition to the new operating model and strong RPO (remaining performance obligation) growth (40% y/y) suggests sustainable demand and upside potential for the prudent outlook,” Kothari said .

Kothari is ranked #233 out of over 9,000 analysts tracked by TipRanks. Its ratings were profitable 69% of the time, delivering an average return of 22.1%. (See SentinelOne Hedge Fund Trading Activity on TipRanks)