3 New Strong Buy Ratings from Top-Rated Analysts: 05/23/2025

What stocks are basking in the warm glow of positive sentiment? Here’s a no-cost look at our Strong Buy Stocks from Top Wall Street Analysts screener:

• Gates Industrial (GTES) delivers a double beat — and investors are doubling down 
• Why analysts are increasingly bullish on McKesson (MCK)
• Why Brinker International (EAT) is our Stock of the Week

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1. Gates Industrial (NYSE: GTES)

Founded 114 years ago and headquartered in Denver, Colorado, GTES is our second industrial machinery stock this week. Gates Industrial, which makes power transmission and fluid power solutions for a wide variety of industries, delivered a double beat in Q1 2025 — and the showing was good enough to warrant an upward revision from one of Wall Street’s best.

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

Recent Price: $22.15  — get current quote > 

Max 1-year forecast: $26.00 

Why we’re watching:

• Researchers are largely bullish on GTES shares — which currently have 5 Strong Buy ratings, 1 Buy rating, and 3 Hold ratings — with no Sell or Strong Sell ratings. See the ratings
• Gates Industrial is the 4th highest rated stock in the Specialty Industrial Machinery industry, which has an Industry Rating of B. In fact, it’s right ahead of one of our picks earlier this week, Regal Rexnord (NYSE: RRX).
• Julian Mitchell of Barclays (a top 1% rated analyst), the researcher we mentioned when we covered Regal Rexnord, also maintained a Strong Buy rating on GTES, and increased his price target from $22 to $23. 
• As mentioned previously in our RRX entry, after reviewing results, the analyst concluded that the risk-reward profile for short-cycle industrial shares focusing on small or medium-caps is "more attractive now than going in."
• GTES shares have a Zen Rating of A, and rank in the top 5% of the equities that we track.
• Our rating system has identified stock price stability, stable and predictable revenue flows, and predictable earnings as some of Gates Industrial’s biggest strengths — which have given it a place in the top 3% of stocks according to Safety. (See all 7 Zen Component Grades here >)

2. McKesson (NYSE: MCK)

A supplier of branded, generic, and specialty pharmaceuticals, as well as medical equipment, McKesson is one of the largest healthcare businesses in the United States. Beyond being a solid defensive pick due to the sector it operates in, the company is also on a roll — having provided four consecutive earnings beats and announced the spinning off of one of its key divisions into a separate business last week.

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

Recent Price: $724.18 — get current quote > 

Max 1-year forecast: $805.00 

Why we’re watching:

• Based on the 7 analysts currently issuing ratings for MCK, the stock is a consensus Strong Buy. McKesson shares currently have 4 Strong Buy ratings, 1 Buy rating, and 2 Hold ratings. See the ratings 
• McKesson is currently the 2nd highest rated stock in the Medical Distribution industry, which has an Industry Rating of A, behind only Cardinal Health (NYSE: CAH), which we highlighted in one of last week’s Strong Buys.
• Following the company’s Q4 and FY 2025 earnings call, Bank of America’s Michael Cherny (a top 12% rated analyst) maintained a Strong Buy rating on MCK and hiked his price forecast from $755 to $800.
• Per the BofA analyst, the sale of the Med-Surg division and the company's increased emphasis on its U.S. Pharmaceutical and Prescription Technology Solutions division were "positives" that should boost McKesson's enterprise growth profile in the long run.
• Citing the company's early start in U.S. Oncology and its recent investment in PRISM, the analyst believes that McKesson has a good chance of outpacing the market growth rate.
• Further, Cherny predicted a 12% to 14% EPS growth over the long term and said they are raising their earnings multiple to account for the quicker growth rate and the recent increases in peer multiples.
• In terms of its Zen Rating, MCK is an interesting case. It currently carries a B rating, and is in the 94th percentile overall. In other words, it’s right on the edge of an A rating — in fact, it would have to surpass only 4 stocks to qualify for a Zen Rating of A.
• Moreover, recent returns are more in line with a Zen Rating of A, as McKesson shares have gained 30.3% in the past year.
• Growth is MCK’s strongest Component Grade rating, as it ranks in the top 10% of stocks in this regard. In addition, it also ranks in the 81st percentile in terms of Safety. (See all 7 Zen Component Grades here >)

3. Brinker International (NYSE: EAT)

Our last entry for today is our Stock of the Week. Brinker International has managed to thrive in a challenging backdrop for the restaurant business — and while analysts expect that the rate of growth will moderate going forward, the stock ranks quite highly in terms of Growth, and is currently trading at quite the modest P/E.  

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

Recent Price: $148.59 — get current quote > 

Max 1-year forecast: $208.00 

Why we’re watching:

• EAT is our Stock of the Week. Our Editor-in-Chief, Steve Reitmeister, added the stock to his exclusive Zen Investor portfolio on May 7 and explained why in a Monday article.
• Brinker International is the restaurant company that owns Chili’s. Since late 2022, earnings per share (EPS) have risen by 3x — while EAT stock has seen a sixfold increase in price.
• Despite the impressive run, the consensus is that there’s still plenty of room to grow — best seen in the $8.78 EPS estimate for this year which is more than twice as good as last year at only $4.10. The pace of growth is expected to moderate into 2026 yet still impressive with a $9.79 outlook.
• Brinker International is the top-rated stock in the Restaurant industry.
• EAT shares have a Zen Rating of A, and rank in the top 2% of the more than 4,600 equities that our system tracks.
• The stock ranks in the top 6% in terms of Financials (here’s why that matters), the top 7% when it comes to Growth, and the top 20% according to Sentiment. 
• Lastly, we have Value — the stock is trading at an attractive price-to-earnings (P/E) of just 19.9x, and ranks in the 79th percentile 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 >

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