3 "Top Picks" From Wall Street That Are Magnificent Buys Right Now

In a market where uncertainty looms large, Wall Street analysts are honing in on a select few stocks poised to deliver outsized returns. As of Q2 2025, three names have emerged as top picks—each backed by robust fundamentals, dividend strength, and catalysts that could propel them higher. These aren’t just buy recommendations; they’re strategic plays designed to navigate the current economic crossroads.

1. AT&T (T): Dividend Powerhouse with Catalysts Ahead

Why Buy Now?
AT&T’s Q1 results were a masterclass in execution, with 324,000 postpaid phone and fiber net subscriber additions and management reaffirming full-year guidance. RBC Capital’s Jonathan Atkin, who boasts a 11.3% average annual return on his recommendations, has raised his price target to $30 and reiterated a “Buy” rating.

The company’s $1.11 annual dividend yield (4.0%) provides a cushion in volatile markets, while its plan to initiate share buybacks in Q2—once net leverage hits 2.5x—could further boost shareholder value.

2. Philip Morris International (PM): Riding the Smoke-Free Trend

Why Buy Now?
Philip Morris is transforming its legacy tobacco business into a growth machine. Q1 revenue rose 10% organically, with 340 basis points of gross margin expansion driven by its smoke-free products (e.g., Iqos, Zyn). These products now account for over 40% of revenue, and Zyn’s U.S. volumes are expected to hit 824 million cans by year-end—a 42% jump from 2024.

Stifel’s Matthew Smith, who has a 15% average return on his picks, has raised his price target to $186. With a 3.2% dividend yield, PM offers both income and growth exposure.

3. Texas Instruments (TXN): Analog Chip Leader with a Cash Flow Boom

Why Buy Now?
Texas Instruments is a rarity in a struggling tech sector: it’s beating estimates. Q1 earnings and revenue outperformed expectations, driven by strong demand for analog chips. Evercore’s Mark Lipacis, a 20.4% average return analyst, keeps a “Buy” rating with a $248 price target.

The real kicker? Free cash flow is projected to surge from $1.00 per share (TTM) to $10.30 by 2027 as capital expenditures decline. This creates a dual tailwind: buybacks and dividends.

The Case for These Picks

These three stocks aren’t just beneficiaries of their own strengths—they also align with broader market themes:
- Dividend stability: All three offer yields between 3.2% and 4.0%, a critical hedge against volatility.
- Value reversion: Analysts like Judson Traphagen (Plough Penny Partners) highlight undervalued names like Lesaka Technologies and Veon, but the top picks here are blue chips with track records.
- Growth resilience: While AI-linked stocks have stumbled, companies with moats (e.g., Texas Instruments’ analog dominance) or structural shifts (Philip Morris’s smoke-free transition) are outperforming.

Conclusion

Wall Street’s Q2 picks reflect a pragmatic strategy: prioritize stability, leverage catalyst-driven growth, and avoid overpaying for trends. AT&T’s fiber expansion, Philip Morris’s smoke-free pivot, and Texas Instruments’ cash flow boom are all supported by high-conviction analysts with strong track records.

Take AT&T: its price target implies ~20% upside from current levels, while its dividend yield is double the S&P 500 average. Philip Morris’s Zyn expansion and Texas Instruments’ 2027 cash flow projections ($10.30/share) offer multiyear catalysts.

With value stocks trading at a 13% discount to fair value and wide-moat giants like Apple and Microsoft now attractively priced, now is the time to build positions in these Wall Street favorites. The data is clear—these three stocks are magnificent buys right now.