3 of Wall Street's Favorite Stocks on Our Buy List

Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street’s excitement appears well-founded.

Datadog (DDOG)

Consensus Price Target: $212.45 (58.8% implied return)

Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.

Why Is DDOG a Top Pick?

1. ARR growth averaged 26.5% over the last year, showing customers are willing to take multi-year bets on its software
2. Forecasted revenue growth of 21.8% for the next 12 months indicates its momentum over the last two years is sustainable
3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

Datadog’s stock price of $133.77 implies a valuation ratio of 12.6x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

The Trade Desk (TTD)

Consensus Price Target: $61.73 (63.4% implied return)

Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.

Why Are We Bullish on TTD?

1. Winning new contracts that can potentially increase in value as its billings growth has averaged 20.1% over the last year
2. Software platform has product-market fit given the rapid recovery of its customer acquisition costs
3. Highly efficient business model is illustrated by its impressive 18.9% operating margin, and its rise over the last year was fueled by some leverage on its fixed costs

At $37.78 per share, The Trade Desk trades at 5.9x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Bowhead Specialty (BOW)

Consensus Price Target: $34.86 (27% implied return)

Named after the Arctic bowhead whale known for navigating challenging waters, Bowhead Specialty Holdings (NYSE:BOW) is a specialty insurance company that provides customized coverage for complex and high-risk commercial sectors.

Why Will BOW Outperform?

1. Net premiums earned expanded by 37.9% annually over the last two years, demonstrating exceptional market penetration this cycle
2. Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
3. Annual book value per share growth of 74.5% over the last two years was superb and indicates its capital strength increased during this cycle

Bowhead Specialty is trading at $27.44 per share, or 2.1x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.