Don't miss out on a 'rare' and unique opportunity to own these stocks, analysts say

Published Sat, Feb 26 20227:48 AM EST

Wall Street analysts said this week there's a special opportunity brewing to own several high quality companies amid the ongoing market volatility. These stocks are firing on all cylinders, and analysts say they are well positioned for the long term. CNBC Pro combed through the best Wall Street research to find some of the top stocks to own right now. They include Nike , Thomson Reuters, Chipotle , Omnicell and Ultragenyx. Chipotle Wall Street analysts can't stop raving about Chipotle. Credit Suisse's Lauren Silberman is no exception. The firm praised the burrito chain in a recent note to clients after the company posted better than expected earnings in early February. "We expect CMG to deliver outperformance, driven by benefits from proactive investments, a purpose-driven culture, strong unit growth supporting career development opportunities, healthy pricing power and one of the best digital strategies in restaurants," she wrote. Silberman said the company's management has been successfully pulling several levers at the same time leading her to see much more upside for the stock in the months ahead. This includes Chipotle's rapidly growing loyalty program, according to the firm. "We have high conviction in this rare compounding growth story positioned for double-digit top-line, margin expansion & unit growth acceleration over the years to come," she added. Shares are up 0.7% for the month. Omnicell Shares of Omnicell are down nearly 30% this year, but don't give up on the stock yet, Stephens analyst Scott Schoenhaus wrote recently. The medication management health-care tech company presents investors with a "rare" buying opportunity, he said. In particular, Schoenhaus said the company's software business is set up for a huge rate of return in the coming years. Omnicell is "still in the early stages of expanding its software offerings that should allow the company to achieve significant top and bottom-line growth," he wrote. The company is well positioned with a "runway for valuation multiple re-rating of the stock given the pathway in its software expansion," the analyst added. In addition, Omnicell reported a very strong fourth-quarter earnings report in mid-February and while some near-term inflationary pressures persist, Schoenhaus believes they can be overcome. "Remain buyers with significant growth opportunities ahead," he said. Thomson Reuters The business and data analytics company is coming off a mixed earnings report in early February, but investment firm Credit Suisse said in a note that investors should look past the results and buy the dip. The firm blamed the stock's recent weakness on the company's $25 million dollar investment to "better position [for] business in 2022," analyst Kevin McVeigh wrote. "This was for go-to-market and product development coupled with data and analytics to improve the customer experience," he said. McVeigh called the opportunity to buy shares a "rare and attractive opportunity" and said the company isn't getting enough credit. "That said, the company boosted FY22-23 outlook, which reinforces our multiple expansion thesis for the TRI stock," he added. Thomson Reuters also had an investor day recently, which McVeigh left feeling bullish. "We believe the recent stock weakness offers a unique opportunity with very favorable risk/reward, especially given relative immunity to supply chain disruption + labor shortages," the firm wrote. Shares of the company are up 1% for the week. Chipotle - Credit Suisse, Outperform rating "We expect CMG to deliver outperformance, driven by benefits from proactive investments, a purpose-driven culture, strong unit growth supporting career development opportunities, healthy pricing power and one of the best digital strategies in restaurants. … We have high conviction in this rare compounding growth story positioned for double-digit top-line, margin expansion & unit growth acceleration over the years to come." Nike - Wells Fargo, Overweight rating "With the shares -17% YTD, we see a favorable risk/reward and view the pullback as a rare buying opportunity for this best-in-class global athletic name, particularly ahead of accelerating trends into FY23. Further, following our recent checks in China, between greater marketing investments go-forward and improving supply, we expect the brand can sequentially improve from 2Q's -24% CC and LT is well positioned to retain its #1 market share position in the region." Omnicell - Stephens, Overweight rating "Near term Inflation Pressures not Core to Our Thesis, Presents Rare Buying Opportunity. … Said another way, in face of these transitory issues, we believe that OMCL is still in the early stages of expanding its software offerings that should allow the company to achieve significant top and bottom-line growth outlined in our 'Longer-Term Value' note. … Remain Buyers With Significant Growth Opportunities Ahead. … We continue to see runway for valuation multiple re-rating of the stock given the pathway in its software expansion." Ultragenyx - JPMorgan, Overweight rating "Upgrading to OW As the Market Presents a RARE Opportunity. Almost exactly one year ago, we downgraded RARE to Neutral post a surge in valuation. Since then, we could not have envisioned that shares would be down ~57% over the subsequent 12 months – including 19.7% YTD – all while the company continued to execute well, grow the commercial portfolio, 7 broaden/advance the pipeline. … As a diversified orphan disease company with tangible assets, 2022 catalysts, & a strong management team, we can no longer ignore this opportunity." Thomson Reuters - Credit Suisse, Outperform rating "$25m Investment Creates Attractive Opportunity. … We believe the weakness was due to $25m Q4 investment to better position business in 2022. This was for go-to-market and product development coupled with data and analytics to improve the customer experience. … That said, the company boosted FY22-23 outlook, which reinforces our multiple expansion thesis for the TRI stock. … We believe the recent stock weakness offers a unique opportunity with very favorable risk/reward, especially given relative immunity to supply chain disruption + labor shortages."

Shoppers wait in line to enter stores as Black Friday sales begin at The Outlet Shoppes of the Bluegrass in Simpsonville, Kentucky, November 26, 2021.

Jon Cherry | Reuters

Wall Street analysts said this week there's a special opportunity brewing to own several high quality companies amid the ongoing market volatility.