TipRanks’ ‘Perfect 10’ Picks: 2 Top-Scoring Stocks Hitting All the Right Notes

The Fed’s June meeting is front and center this week, with most expecting rates to stay put at 4.25–4.50%. Still, investors will be tuning in for any clues about when cuts might be on the table. At the same time, the escalation of the Israel-Iran conflict is keeping oil prices – and overall market volatility – on edge.

With all of that going on, it’s only natural for investors to seek some clear guide to mark out likely upwardly mobile stocks. The Smart Score, from TipRanks, does just that, using an AI-powered natural language algorithm to scour the reams of market data, collect that raw information, and use it to rate every public stock against a set of factors that have proven track records as positive indicators of future outperformance. After rating stocks against the market data, the algorithm rates them on a simple scale of 1 to 10 – with the ‘Perfect 10’ stocks deserving a closer look.

And when some of the Street’s top-rated analysts are also chiming in with positive reviews on the ‘Perfect 10s’, that’s an even clearer sign for investors.

We’ve done some footwork and used the Smart Score to pick out two such stocks, which combine the ‘Perfect 10’ rating with clear recommendations from top-rated analysts. Let’s give them a closer look, and find out why these stocks are hitting all the right notes.

Archrock, Inc. (AROC)

We’ll start in the natural gas industry, where Archrock is a leading provider of natural gas compression services. This is an essential niche, used in the transport of natural gas from low-pressure wells into the midstream transport system, and to increase pressure in the wells and maintain production as the reservoirs decline. Archrock provides compression services for oil and gas customers in the US, and also provides after-market support services for companies that own and operate their own compression equipment. In addition, Archrock provides ancillary services, such as recovery solutions for natural gas liquids, and reduction services to lower methane emissions.

Archrock is based in Houston, Texas, and currently boasts a market cap of nearly $4.4 billion. The company’s operating footprint is nationwide, with active compression ops in all of the major gas producing basins of the continental US. Archrock has its largest footprint in the Gulf Coast region of Texas and Louisiana, but is also active in the Permian Basin, in Oklahoma, in the Rocky Mountains, and in the rich gas fields of the Appalachians and Michigan’s Lower Peninsula. In addition to its traditional compression systems, the company also offers electric motor drive (EMD) compression systems, designed to reduce CO2 emissions during the compression process. Archrock has been in business since 1954.

Last month, Archrock completed an acquisition to expand its services. The company bought Natural Gas Compression Systems, Inc., adding approximately 351,000 horsepower to its available services. The transaction was valued at $357 million, with $299 million transacted in cash and the remainder in stock.

On the financial side, Archrock’s last set of quarterly results came in above the forecasts. Those results covered 1Q25, and showed total revenues of $347.2 million, up more than 29% year-over-year and $4.72 million better than had been anticipated. At the bottom line, Archrock realized a non-GAAP EPS of $0.42, or 3 cents better than the estimates.

This gas company has caught the eye of one of Wall Street’s best analysts, Elvira Scotto of RBC. The analyst, who is rated #35 overall by TipRanks, likes Archrock’s solid position in a growing industry. She writes of the stock, “We still think AROC is well positioned as utilization remains strong and the late cycle nature of compression provides visibility and flexibility. We think natural gas demand trends support operations even in a Permian slowdown scenario as AROC can benefit from incremental compression needs in dry gas basins, albeit at likely lower levels of compression intensity vs the Permian.”

These comments back up Scotto’s Outperform (i.e., Buy) rating on AROC shares, while her $31 price target points toward a one-year upside potential of 25%. (To watch Scotto’s track record, click here)

The 5 recent analyst reviews on this stock break down 4 to 1 in favor of Buy over Hold, for a Strong Buy consensus rating. The shares are priced at $24.82 and their average target price of $30.8 offers 12-month upside of 24%. (See AROC stock forecast)

Clearwater Analytics Holdings (CWAN)

Next on our list of ‘Perfect 10s’ is Clearwater Analytics, a fintech company which, as its name suggests, focuses on data analysis. Clearwater is a software firm, offering subscription-based data analysis tools and packages on the popular SaaS model. The company uses an AI-driven approach in its software tools, providing its customers with automated, comprehensive, and accurate packages for tax and regulatory reporting; investment onboarding; and simplified global accounting.

Clearwater, which was founded in 2004, is based in Boise, Idaho – but it has a global footprint, and maintains offices in New York City, Washington, DC, London, Edinburgh, Paris, Hong Kong, Singapore, and New Delhi, to name a few. The company has found acceptance with more than 1,000 of the world’s leading investment firms, who rely on Clearwater for accounting and reporting solutions.

Some numbers will show the scale of Clearwater’s success. The company has more than 13,000 users on its system, which is delivered entirely as software-as-a-service. There are more than 1,200 code releases every year, keeping the software up to date, and Clearwater boasts that its users maintain $8.8 trillion in total AUM on the system. As for Clearwater itself, the company generated $451.8 million in revenue last year, and has a market cap of $6.2 billion.

Clearwater is pursuing an expansion-by-acquisition strategy, and in the last few months has made several important moves in that direction. On April 21, the company completed its acquisition of the SaaS hedge fund investment management fintech Enfusion in a deal valued at $1.5 billion. Shortly after, on April 30, Clearwater completed its acquisition of the enterprise risk analytic firm Beacon, in a stock and cash transaction worth $560 million. Earlier, in March, Clearwater acquired Blackwater’s Bistro, the portfolio visualization software platform, for $10 million in cash and $115 million in stock.

While all of this was going on, Clearwater also reported its 1Q25 results on April 30. The company generated $126.9 million in revenue during Q1, representing year-over-year growth of 23% and beating the forecast by $1.78 million. Clearwater’s first quarter earnings came to 13 cents per share by non-GAAP measures, a penny better than had been expected.

Peter Heckmann covers this stock for D.A. Davidson, and he sees the acquisition moves as the key point for investors to focus on. Heckmann writes, “Since January, Clearwater had committed to direct $2.1B in cash and stock to the acquisition of three companies (Enfusion, Beacon & Bistro), and all three deals have been completed. While the deals clearly bring a higher level of integration risk as well as relatively high financial leverage, we view the combination positively. We see the acquisitions as very strategic, complementary to each other, and likely to advance Clearwater’s technology road map by several years. We believe the combined capabilities will produce the only fully modern, integrated and scaled provider of front-to back-office automation capabilities for global investment managers.”

The analyst’s stance supports his Buy rating on CWAN shares, while his $36 price target implies an upside for the coming year of 63%. (To watch Heckmann’s track record, click here)

This stock has picked up 11 recent analyst reviews, including 9 Buys and 2 Holds for a Strong Buy consensus rating. The shares have a current trading price of $22.11 and the average target price of $31.90 suggests that the stock will gain 44% on the one-year horizon. (See CWAN stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.