3 New Strong Buy Ratings from Top-Rated Analysts: 04/18/2025

Following top-rated analysts can be like a fast-forward button, directing you toward high-quality stocks. Here’s a peek at the latest picks from our Strong Buy Stocks from Top Wall Street Analysts screener:

• Analysts project excellent upside for Merck (NYSE: MRK)
• TAT Technologies (NASDAQ: TATT) is an under-the-radar pick gaining traction with smart money
• Why Eli Lilly (NYSE: LLY) is gaining momentum — and why it could last

P.S. Get more alerts like this daily … Try WallStreetZen Premium.

1. Merck & Co (NYSE: MRK)

Despite not seeing the glorious peaks that some other pharma giants did during the wake of COVID-19, Merck & Co has since reoriented itself toward core competencies in oncology and immunotherapies. While analysts are slightly skittish about an upcoming patent expiry, at present, MRK stock is quite attractive on two fronts that are all the more important once you consider current market trends. No spoilers though — we can’t tell you everything in the intro.

Zen Rating: B (Buy) — see full analysis >  

Recent Price: $79.18  — get current quote > 

Max 1-year forecast: $130.00 

Why we’re watching:

• Although cautious, analysts are bullish on MRK stock — out of a total of 11 ratings, 5 are Strong Buys, 1 is a Buy, and 5 are Holds. See the ratings
• With that being said, the average 12-month price forecast sees the stock reaching a price of $112.55 — a mark that equates to a 42.14% upside.
• Guggenheim’s Vamil Divan (a top 4% rated analyst) reiterated a Strong Buy rating following the company’s Q4 and FY 2024 earnings call. On that occasion, the researcher also cut his price target from $122 to $115.
• Following an analysis of the results and management's initial FY 2025 guidance, Divan said they cut their price target and updated their model.
• The analyst explained that lower sales projections for Gardasil only partly offset by expectations that the company will be able to convert patients to subcutaneous Keytruda catalyzed their reduced price target.
• Merck & Co stock has an overall Zen Rating of B. Stocks in this category have provided an average annual return of 19.88% since the early 2000s.
• Those two key fronts that we mentioned in the intro — the ones that make MRK worthy of consideration in view of current market trends? They are Value and Safety — and Merck shares rank in the top 1% and top 4% in these categories. (See all 7 Zen Component Grades here >)

2. TAT Technologies Ltd (NASDAQ: TATT)

TAT Technologies is an aerospace company, that, like many of its peers and rivals, doubles as a defense contractor. However, it stands out by being a provider of highly specialized products — thermal management and environmental control systems. Despite not enjoying widespread coverage, TATT has recently attracted the attention of one of Wall Street’s premier analysts.

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price: $27.70 — get current quote > 

Max 1-year forecast: $35.00 

Why we’re watching:

• This is an interesting case — only one analyst currently covers TATT stock, and he has given it a Strong Buy rating. See the rating
• That one analyst is Benchmark’s Josh Sullivan (a top 1% rated analyst), who doubled down on a Strong Buy rating on April 3 and increased his price target from $30 to $35.
• The revised price target was issued after TAT Technologies reported its Q4 and FY 2025 earnings.   
• Sullivan said the results beat Benchmark's revenue and margin estimates in the company's "ninth consecutive quarter of growth.
• Looking ahead, the analyst predicted "this streak will continue," citing expanded capabilities in APU repairs, an emerging landing gear cycle, increased leasing/trading contributions, and strong heat exchanger demand.
• Our rating system seems to agree with Sullivan’s bullish outlook. TAT Technologies stock has an overall Zen Rating of A, and ranks in the 95th percentile of stocks when taking into account 115 proprietary factors that correlate with outsized returns.
• Momentum is TAT Technologies’ strongest Component Grade rating — beyond those 9 consecutive earnings beats, it has seen stock prices increase by 141.71% in the last 365 days. In terms of this rating, it ranks in the top 4% of stocks
• However, TAT shares also rank highly in terms of Sentiment and Artificial Intelligence — in both cases, in the top 11%. (See all 7 Zen Component Grades here >)

3. Eli Lilly & Co (NYSE: LLY)

Weight loss drugs put pharma stocks back in the spotlight — Mounjaro and tirzepatide did it for Eli Lilly. In 2024, the business marked a 32% increase in full-year revenue — exceeding its own guidance by a staggering $4 billion. Those weight loss drugs have only one major flaw — at this point, they’re all injectable. However, Eli Lilly is set to release phase 3 trial data for Orforglipron — an oral weight-loss drug, later this year, in what could prove to be a major bullish catalyst.

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price: $732.41 — get current quote > 

Max 1-year forecast: $1,190.00

Why we’re watching:

• There’s a strong bullish consensus regarding Eli Lilly on the Street — out of a total of 10 ratings, 9 are Strong Buys, rounded out by a single Buy rating. No Hold, Sell, or Strong Sell ratings are currently issued. See the ratings
• IN addition, the average 12-month price target for LLY shares, which stands at $1,042.70, implies a hefty 42.37% upside.
• On April 9, Morgan Stanley researcher Terence Flynn (a top 8% rated analyst), maintained a Strong Buy rating on Eli Lilly stock, but cut his price target from $1,146 to $1,124. 
• Flynn said a deep dive into their Healthcare (Pharma & Biotech) portfolio catalyzed their price target cut on Eli Lilly & Co.
• In preparation for the group's Q1 2025 earnings, the analyst said they updated their large-cap pharmaceutical and biotech models to account for IQVIA trends and intra-quarter data.
• At present, LLY is the 4th highest-rated stock in the General Drug Manufacturing industry.
• Eli Lilly stock carries an overall Zen Rating of A, and currently ranks in the top 5% of the more than 4,600 stocks tracked by our rating system.  
• Growth is currently Eli Lilly’s strongest Component Grade rating — a high degree of projected earnings growth, as well as the fact that margins have expanded from 15.4% to 23.5% over the last year, has earned LLY shares a spot in the top 7% of equities in this category. (See all 7 Zen Component Grades here >)

What to Do Next?

• 200 Stocks to Sell Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.