Top Analysts Recommend 3 Best Stocks to Purchase Now, 10/20/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 20 2025
0mins
Should l Buy STWD?
Source: TipRanks
Top Stock Picks: Analysts have identified three stocks as Strong Buys: Starwood Property (STWD), Schlumberger (SLB), and ATAI Life Sciences (ATAI), each with significant upside potential based on recent ratings.
Analyst Ratings and Price Targets: Starwood Property has a price target of $21 (22.21% upside), Schlumberger's target is raised to $42 (34.85% upside), and ATAI Life Sciences has a target of $10 (98.45% upside), all supported by top analysts' Buy ratings.
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Analyst Views on STWD
Wall Street analysts forecast STWD stock price to rise
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 18.100
Low
19.50
Averages
20.00
High
21.00
Current: 18.100
Low
19.50
Averages
20.00
High
21.00
About STWD
Starwood Property Trust, Inc. is a real estate investment trust. The Company's segments include Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. The Commercial and Residential Lending segment is engaged in originating, acquiring, financing and managing commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities, residential mortgage-backed securities and other real estate and real estate-related debt investments in the United States, Europe and Australia. The Infrastructure Lending Segment is engaged in originating, acquiring, financing and managing infrastructure debt investments. The Property Segment is engaged in acquiring and managing equity interests in stabilized commercial real estate properties. Investing and Servicing segment includes a servicing business in the United States, an investment business, and a mortgage loan business.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Strong Financial Performance: Starwood Property Trust reported distributable earnings of $160 million or $0.42 per share for Q4 2025, with total annual distributable earnings reaching $616 million, reflecting robust performance in core businesses and enhanced liquidity.
- Accelerated Capital Deployment: The company deployed $12.7 billion in capital throughout 2025, including $2.5 billion in Q4, and anticipates continued support for distributable earnings growth in 2026 through funding from unfunded commitments, enhancing shareholder returns.
- Credit Management Strategy: Management emphasized prioritizing the resolution of legacy credit issues while maintaining a conservative balance sheet and selectively growing high-return businesses to restore full earnings power, with expectations for stronger earnings growth in 2026.
- Optimistic Market Outlook: Management expressed confidence in future earnings power, particularly with the expansion of the net lease business and continued asset redeployment, anticipating a robust origination year in 2026 that will further drive earnings growth.
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- Buyback Program Initiated: Starwood Property Trust's board has authorized a share repurchase of up to $400 million in common stock and convertible notes, expected to be executed over the next year, demonstrating the company's confidence in its stock value.
- Funding Source Clear: The buyback will be financed through the company's existing cash, with Starwood holding $499.5 million in cash and cash equivalents as of December 31, 2025, ensuring the feasibility of the repurchase plan.
- Management Decision Flexibility: As is typical with stock repurchase authorizations, the timing and amount of buybacks will be determined by management based on market and economic conditions, allowing for optimized capital allocation.
- Positive Market Reaction: Following the buyback announcement, Starwood shares rose 1.3% in Thursday afternoon trading, reflecting investor optimism regarding the company's future performance.
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- Repurchase Program Initiated: Starwood Property Trust's Board of Directors has authorized a share and convertible note repurchase program of up to $400 million, expected to be executed over the next year, reflecting the company's confidence in its stock value.
- Funding Source Clear: The repurchase will be funded through the company's existing cash, ensuring ample liquidity and flexibility, thereby enhancing investor trust in the company's financial health.
- Market Operations Flexible: Repurchases will be conducted flexibly based on market conditions, stock prices, and legal requirements, potentially occurring in open market or privately negotiated transactions, demonstrating the company's agility and foresight in capital management.
- Long-term Investment Strategy: Since inception, Starwood Property Trust has successfully deployed $115 billion in capital and manages over $30 billion in investments, with the repurchase program aimed at further attracting investors through stable dividend returns and strengthening the company's competitiveness in the real estate and infrastructure sectors.
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- Earnings Beat: Starwood Property Trust reported a Q4 distributable EPS of $0.42, exceeding analyst expectations of $0.41 and rising from $0.40 in Q3, indicating a sustained improvement in profitability.
- Revenue Growth: The total revenue reached $492.9 million, surpassing the consensus estimate of $476.2 million and increasing from $488.9 million in the previous quarter, reflecting the company's strong market performance.
- Investment and Financing: In Q4, Starwood invested $2.5 billion, including $1.7 billion in commercial lending and $480 million in infrastructure lending, while executing $2.0 billion in securitized financings, showcasing its proactive capital management strategy.
- Cash Flow Position: As of February 20, 2026, Starwood had $1.4 billion in cash plus approved undrawn debt capacity, with the CEO stating that these funds will be utilized to drive future earnings growth and enhance financial flexibility.
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- Strong Financial Performance: Starwood Property Trust reported a GAAP net income of $411.5 million and Distributable Earnings of $615.5 million for the fiscal year 2025, showcasing exceptional performance in global commercial and infrastructure lending, which is expected to yield stable long-term returns for shareholders.
- Record Investment Scale: The company invested $12.7 billion in 2025, including $2.5 billion in the quarter, marking the second-largest investment year in its history, indicating a proactive expansion strategy and confidence in future growth.
- Capital Transactions at All-Time High: Starwood executed a record $4.4 billion in capital transactions in 2025, further strengthening its balance sheet and laying the groundwork for future investment opportunities, demonstrating its sustained competitiveness in capital markets.
- Consistent Dividend Policy: The company has maintained a dividend of $0.48 per share for over a decade, reflecting stable cash flows and commitment to shareholders, which is expected to continue attracting investors and enhancing market confidence.
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- Earnings Beat: Starwood Property Trust reported Q4 earnings per share of $0.42, exceeding the expected $0.41, indicating the company's stable profitability and growth potential.
- Significant Revenue Growth: The company achieved Q4 revenue of $492.95 million, an 8.5% year-over-year increase, surpassing analyst expectations of $481.27 million, reflecting its strong performance in the real estate investment trust sector.
- Increased Investment Appeal: With the expansion of its asset portfolio, Starwood Property Trust is considered one of the top investment choices for the 2026 easing cycle, boasting an attractive yield of 12.7%, which has drawn more investor interest.
- Optimistic Market Outlook: J.P. Morgan has listed Starwood Property Trust as a top income stock pick for 2026, indicating strong market confidence in its future performance, which could further drive stock price appreciation.
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