Oh happy day. Here’s a peek at the latest picks from our Strong Buy Stocks from Top Wall Street Analysts screener:
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AAR Corp (AIR) crushes earnings, enjoys strategic wins
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Eli Lilly & Co (LLY) continues to lead the GLP-1 market
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Merck & Co (MRK) makes a bold oncology push
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AAR CORP. just delivered a strong Q2 beat, pairing rising sales with major strategic wins—including an exclusive distribution deal with TRIUMPH and a digital MRO transformation partnership with Thai Airways.
Zen Rating: B (Buy) — see full analysis
Recent Price: $97.00 — get current quote
Max 1-year forecast: $105.00
Why we're watching:
- Analyst support: Right now, the 4 analysts we track issuing ratings on AIR are unanimously bullish: It has 3 Strong Buy and 1 Buy rating. See the ratings
- RBC Capital researcher Kenneth Herbert (a top 1% rated analyst) maintains Buy with a $105.00 price target (+8.21% upside), while Truist Securities' Michael Ciarmoli (also top 1%) maintains Strong Buy at $99.00, highlighting consistent growth in the aerospace sector.
- AIR's impressive 108.62% climb from 52-week lows reflects strong operational momentum with earnings growth of +74.79% forecasted next year.
- Industry ranking context: AIR is currently the 12th highest-rated stock out of 72 in the Defense industry, which has an Industry Rating of C.
- Zen Rating highlights: As a B-rated stock, AIR is in a class of stocks that have historically returned 19.88% annually.
- Component Grades: Growth and Sentiment are the standout scores here — both above-average Bs. These solid grades are backed by the unanimously bullish sentiment and AIR's 15.5% ROE and projected revenue growth to $3.5B over two years. See all 7 Zen Component Grades here
2. Eli Lilly & Co (NYSE: LLY)
Eli Lilly is breaking out as it moves to acquire Ventyx Biosciences and heads into what many are calling the year of obesity pills — where Lilly’s lead in the GLP-1 market is only getting wider.
Zen Rating: A (Strong Buy) — see full analysis
Recent Price: $1,063.56 — get current quote
Max 1-year forecast: $1,500.00
Why we're watching:
- Analyst support: Right now, we follow 17 analysts covering the stock. It has 11 Strong Buy, 3 Buy, and 3 Hold ratings, demonstrating strong bullish consensus. See the ratings
- UBS researcher Michael Yee (a top 19% rated analyst) recently assumed coverage with Strong Buy and a $1,250.00 price target (+17.53% upside), stating that LLY's innovative pipeline and strategic positioning serve as robust catalysts for long-term value creation.
- Bank of America's Tim Anderson (top 18%) maintains Strong Buy at $1,268.00 (+19.22% upside), highlighting significant potential in LLY's diabetes treatment offerings as a major revenue driver, while Wells Fargo's Mohit Bansal (top 15%) maintains Strong Buy at $1,200.00.
- Industry ranking context: LLY is currently the 2nd highest-rated stock out of 19 in the General Drug Manufacturer industry, which has an Industry Rating of A. (Want to see what’s rated #1? We featured it in this newsletter.)
- Zen Rating highlights: LLY is an A-rated (Strong Buy) stock, meaning it’s in the top 5% of stocks we track based on a rigorous 115-factor analysis. Stocks with this rating have historically delivered market-beating returns.
- Component Grades: LLY boasts very strong Component Grades: An exceptional A for Sentiment, and above-average Bs in nearly every other category, including Growth, Value, Sentiment, Momentum, and our proprietary AI factor. The only C is for Safety — worth noting, but also fairly normal within the industry. See all 7 Zen Component Grades here
3. Merck & Co Inc (NYSE: MRK)
Merck & Company is making a bold oncology push, reportedly exploring a ~$30B acquisition of Revolution Medicines to supercharge its cancer portfolio.
Zen Rating: A (Strong Buy) — see full analysis
Recent Price: $110.86 — get current quote
Max 1-year forecast: $135.00
Why we're watching:
- Analyst support: Right now, we follow 10 analysts covering the stock. It has 3 Strong Buy, 3 Buy, and 4 Hold ratings. See the ratings
- Wolfe Research recently upgraded the stock to Buy with a $135.00 price target (+22.14% upside), while UBS' Trung Huynh (a top 8% rated analyst) maintains Strong Buy at $130.00, highlighting strong conviction in Merck's growth trajectory.
- The pharmaceutical giant is reportedly in talks to acquire Revolution Medicines in a deal potentially valuing the cancer-drug biotech at around $30 billion, demonstrating continued portfolio expansion efforts.
- Growth potential: MRK enjoys forecasted EPS growth of +22.03% next year and +37.55% in two years.
- Industry ranking context: MRK is currently the 6th highest-rated stock out of 19 in the General Drug Manufacturer industry, which has an Industry Rating of A.
- Zen Rating highlights: As an A (Strong Buy) rated stock, MRK is in the top tier of equities we track. Stocks with this rating have historically delivered 32.52% annual returns.
- Component Grades: MRK has exceptional A grades in three key areas: Financial, Safety, and Value — a trifecta for risk-averse investors looking for solid stocks. In all other areas it has steady if not standout C grades — Growth, Momentum, Sentiment, and our proprietary AI factor. However, considering the overall rating and near-term catalysts, we’re keeping a close eye on this one. See all 7 Zen Component Grades here
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