In spite of macroeconomic pressures, Wall Street analysts expect these stocks to thrive.

It has become challenging to look past the current upheaval and choose solid equities for the long term as a result of layoff announcements and economic slump predictions from several CEOs throughout the earnings season.

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These are five companies recommended by Wall Street's top professionals, as listed by TipRanks, a website that evaluates analysts based on their track records.

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Walmart

For the fiscal fourth quarter, Walmart (WMT) outperformed experts' predictions as consumers on a tight budget opted to shop at the big-box store because of its lower-priced selection. It nevertheless provided a muted sales projection due to how persistently high inflation continues to affect consumer spending on discretionary products.

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However, according to Guggenheim analyst Robert Drbul, Walmart is beginning the new fiscal year on "solid competitive and operational footing." The analyst also emphasized the retailer's gains in market share in the grocery sector, expansion of its private brand portfolio, and an improvement in inventory levels.

Despite ongoing signs of pressure on the consumer, such as continuous food inflation, Drbul added, "We continue to feel Walmart is well positioned in an uncertain macro environment, with its price and value promise and with greater convenience and assortment."

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Drbul also believes Walmart may attract more business from higher-income families "since the firm has made progress in pickup, delivery, and membership." Drbul maintains a buy rating on Walmart and a $165 price target.

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TipRanks ranks Drbul 247th out of over 8,300 experts. Nevertheless, 65% of his ratings were successful, with each yielding a 9.8% average return. (See TipRanks for Walmart Hedge Fund Trading Activity.)

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Crocs

Despite adverse macroeconomic conditions, Crocs (CROX) is finding strong demand for its products. Its fourth-quarter revenue climbed 61%, indicating organic growth and the momentum of the Heydude brand, which the business bought in 2022.

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While Crocs recognizes the macroeconomic difficulties affecting it, it is optimistic about setting a new record in 2023, propelled by demand for its sandals, foreign development possibilities for the Crocs brand, and increased market penetration of the Heydude brand in the United States.

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"The Q4 update included multiple positive developments, including stronger-than-expected Q4 EBIT margin performance, continued robust brand momentum, and reassuring 2023E EPS guidance that is front-weighted and includes multiple areas of conservatism," Baird analyst Jonathan Komp said in response to the results.

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Komp increased his earnings per share expectations for 2023 and 2024, adding that Crocs remained a "preferred idea" at present values due to the company's multiyear growth potential. He reaffirmed his buy recommendation and raised his price objective to $175 from $155.

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Komp is ranked 386th out of over 8,300 analysts tracked by TipRanks. His ratings have been lucrative 54% of the time, with a 13.8% average return on each rating. (See TipRanks for Crocs Blogger Opinions & Sentiment.)

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The Chefs’ Warehouse

Chefs' Warehouse (CHEF), a wholesaler of gourmet culinary goods, is another firm that has shown resilience in the face of adversity. It distributes over 55,000 goods to more than 40,000 locations in the U.S. and Canada.

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Chefs' Warehouse's adjusted profits per share increased over 85% year over year, thanks to strong sales and higher margins. The corporation has been increasing its operations through organic expansion and strategic acquisitions. In the fourth quarter, the business purchased Chef Middle East, allowing it to enter new markets such as the United Arab Emirates, Qatar, and Oman.

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After the release of the fourth-quarter data, BTIG analyst Peter Saleh reaffirmed CHEF's buy rating and "Top Pick" status, with a price objective of $48. Saleh believes that "continuing sales and profits development expands out the company's strong long-term potential," ranking 346 out of 8,341 analysts tracked by TipRanks.

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"We feel investors overlooked the technical intricacies in the report that position the dilution overhang far higher than the stated conversion price," Saleh said. In our opinion, this might operate as a tailwind for the shares in the near term."

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Saleh's ratings have been lucrative 65% of the time, with each rating yielding an average 12.5% return. (See TipRanks' Chef's Warehouse Stock Chart.)

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Datadog

The cloud-based software company Datadog (DDOG) is next on our list, having just delivered market-beating fourth-quarter earnings. Yet, its sales forecast for the first quarter and full year of 2023 alarmed investors. Macroeconomic uncertainty is influencing Datadog's bigger clients' cloud expenditure, slowing its growth rate.

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Based on the company's guidance, Baird analyst William Power reduced his sales estimate for 2023. He also decreased his operational income expectation to reflect the company's ongoing expansion initiatives. (See TipRanks' Datadog Insider Trading Activity.)

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Nonetheless, Power remains optimistic about Datadog's long-term prospects, citing the company's "one of the broadest platforms and a strong R&D engine," as well as "strong enterprise trends," noting that the company ended the fourth quarter with nearly 2,780 customers contributing annual recurring revenue of $100,000 or more, up from 2,010 customers the previous year. Power maintained a buy rating and a $100 price target on Datadog. He is ranked 268 out of over 8,000 experts monitored by TipRanks. Additionally, 55% of his ratings have been lucrative, with each rating yielding a return of 15.5%, on average.

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Applied Materials

Applied Materials (AMAT) serves semiconductors, electronic devices, and related sectors with production equipment and software. Notwithstanding the persistent headwinds in the semiconductor market, the business produced better-than-expected fiscal first-quarter results.

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CEO Gary Dickerson praised the performance, saying the company's resiliency is supported by its "strong positioning with top customers at important technology inflections, a big backlog of distinctive products, and increasing service business."

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After the recent results, Needham analyst Quinn Bolton raised his price target for Applied Materials to $135 from $120 and kept his buy rating. In the report, ICAPS (electronics for Internet, Communications, Auto, Power, and Sensors) "stole the show," according to Bolton. (See TipRanks for Applied Materials Financial Statements.)

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"ICAPS was the call's major emphasis since it was cited 56 times, and rightly so. "AMAT has grown progressively more optimistic on ICAPS than it was last quarter since it is expected to expand Y/Y in 2023 despite China export limitations," Bolton stated.

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He further stated that ICAPS market growth is much outpacing that of leading edge chips this year owing to "end market strength, increased capital intensity, and government incentives."

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Bolton's convictions may be believed, as he is ranked first out of over 8,300 analysts in the TipRanks database. Furthermore, his track record of 70% profitable ratings with an average return of 39.8% is commendable.

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