Top Wall Street analysts believe in the long-term prospects of these stocks

Top Wall Street analysts believe in the long-term prospects of these stocks


Pavlo Gonchar | Lightrocket | Getty Images

Amid concerns over elevated valuations in the U.S. stock market, there are several stocks that continue to look attractive based on the future growth potential they promise.

To pick such stocks, investors can track the recommendations of Wall Street experts, who perform in-depth analysis to offer useful insights about a company’s strengths and growth opportunities.

Here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

GitLab

We start this week with GitLab (GTLB), an artificial intelligence-powered company that offers software development tools. The company recently reported solid results for the third quarter of fiscal 2025 and raised its full-year outlook, citing demand for its end-to-end DevSecOps platform.

Following the Q3 print, BTIG analyst Gray Powell reiterated a buy rating on GTLB and boosted his price target to $86 from $63, saying the company’s Q3 revenue surpassed BTIG expectations by 4% and that operating income and earnings per share were significantly above estimates. He added that the magnitude of upside surprises in revenue has increased over the year, reflecting robust demand and market positioning.

Powell noted several positives, including strength in key metrics like remaining performance obligations (RPO), current RPO (CRPO) and net retention rate (NRR) and the rise in the take rates for the company’s Ultimate bundle. Those solid underlying metrics indicate that GitLab is well-positioned to maintain elevated growth rates in the future, he said. GitLab is also poised to gain from additional tailwinds, including new product offerings and rising customer seat counts, with hiring trends in software expected to improve next year.

Overall, GitLab’s enterprise value (EV)/sales multiple of 12.0x  (based on calendar year 2026 estimates) is “reasonable for a sustainable 25%+ growth story with rapidly improving operating and [free cash flow] margins and an upside bias to forecasts,” the analyst said.

Powell ranks No. 775 among more than 9,200 analysts tracked by TipRanks. His ratings have been profitable 57% of the time, delivering an average return of 10.5%. (See GitLab’s Insider Trading Activity on TipRanks) 

MongoDB

The next pick is MongoDB (MDB). The database software company crushed analysts’ expectations in its fiscal third quarter, thanks to solid demand for its Enterprise Advanced (EA) and Atlas offerings. But the stock fell as the COO and CFO Michael Gordon resigned effective at the end of its fiscal year on January 31, 2025.

In reaction to the impressive results, Needham analyst Mike Cikos reaffirmed a buy rating on MDB and raised the price target 24% to $415 from $335, highlighting that the EA offering was the primary driver of the Q3 revenue beat.

Cikos expects EA to continue to outperform investors’ expectations, thanks to MongoDB’s “run anywhere” strategy that enables organizations to deploy applications anywhere – across devices, on-premises data centers and the cloud.

Cikos added that while the Atlas offering was a smaller contributor to the top-line beat compared to EA, it outperformed Needham’s estimates, with Daily Atlas Consumption accelerating to 6.4% sequentially from 5.9% in the prior quarter. Further, the analyst noted the company’s decision to reallocate certain mid-market investments to prioritize the Enterprise segment. Cikos added that this move matched other software vendors in his coverage universe, reflecting their efforts to evolve best sales practices in the current macroeconomic backdrop.

Cikos ranks No. 511 among more than 9,200 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 15.2%. (See MongoDB Stock Charts on TipRanks) 

SentinelOne

Finally, let’s look at SentinelOne (S), an AI-powered cybersecurity company. Earlier this month, the company reported better-than-expected revenue for the third quarter of fiscal 2025. However, its loss per share widened due to higher operating expenses.

Recently, TD Cowen analyst Shaul Eyal reaffirmed a buy rating on SentinelOne stock with a price target of $35. The analyst believes in the company’s ability to continuously disrupt and win share in the $7 billion legacy antivirus (AV) market.

Calling SentinelOne one of his best ideas for 2025, Eyal thinks that “key ingredients are at hand to make an exciting cocktail” and drive a reacceleration in annual recurring revenue and revenue in fiscal 2026. The key drivers cited were increasing win rates, positive new logo trends and a continuously rising share of clients’ spending.

Additionally, Eyal expects SentinelOne’s partnership with PC maker Lenovo to enhance its medium-term branding, though it might not have any material impact on near-term performance. The revenue outlook for the first quarter and full year of fiscal 2026 are likely to prove the next major catalyst for the stock, determining how significantly the company can capitalize on recent woes at rival CrowdStrike.

Eyal ranks No. 8 among more than 9,200 analysts tracked by TipRanks. His ratings have been profitable 71% of the time, delivering an average return of 27%. (See SentinelOne Ownership Structure on TipRanks) 



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