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Amid concerns about elevated valuations in the US stock market, there are several stocks that continue to look attractive due to promised future growth potential.
To select such stocks, investors can follow the recommendations of Wall Street experts who conduct detailed analysis to gain useful insights into a company's strengths and growth opportunities.
Here are three stocks that are favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on past performance.
GitLab
We're starting this week with GitLab (GTLB), an artificial intelligence-based company that offers software development tools. The company recently reported solid third-quarter fiscal 2025 results and raised its full-year outlook, citing demand for its end-to-end DevSecOps platform.
Following the Q3 release, BTIG analyst Gray Powell reiterated his Buy rating on GTLB and increased his price target to $86 from $63. He said the company's third-quarter revenue beat BTIG expectations by 4% and that operating income and earnings per share were well above estimates. He added that the magnitude of positive sales surprises increased during the year, reflecting robust demand and market positioning.
Powell noted several positives, including the strength of key metrics such as remaining performance obligations (RPO), current RPO (CRPO) and net retention rate (NRR), as well as the increase in adoption rates for the company's Ultimate package. These solid underlying metrics suggest GitLab is well positioned to maintain high growth rates going forward, he said. GitLab is also poised to benefit from additional tailwinds, including new product offerings and an increasing number of customer seats, with software hiring trends expected to improve next year.
Overall, GitLab's enterprise value (EV)/sales multiple of 12.0x (based on calendar year 2026 estimates) is “appropriate for a sustained growth story of over 25% with rapidly improving operating and business results.” [free cash flow] Margins and an upside to forecasts,” the analyst said.
Powell ranks 775th among more than 9,200 analysts tracked by TipRanks. Its ratings were profitable 57% of the time and delivered an average return of 10.5%. (See GitLabs insider trading activity on TipRanks)
MongoDB
The next choice is MongoDB (MDB). The database software company beat analysts' expectations in its fiscal third quarter thanks to solid demand for its Enterprise Advanced (EA) and Atlas offerings. However, the stock fell when COO and CFO Michael Gordon resigned, effective at the end of the fiscal year on January 31, 2025.
In response to the impressive results, Needham analyst Mike Cikos reiterated a Buy rating on MDB and increased the price target by 24% from $335 to $415. He emphasized that EA's offering was the main driver of the increase in sales in the third quarter.
Cikos expects EA to continue to exceed investor expectations thanks to MongoDB's “Run Anywhere” strategy, which enables companies to deploy applications anywhere – on devices, in on-premises data centers and in the cloud.
Cikos added that while the Atlas offering made a smaller contribution to revenue growth compared to EA, it exceeded Needham's estimates. Daily Atlas consumption increased to 6.4% sequentially from 5.9% in the previous quarter. Additionally, the analyst noted the company's decision to reallocate certain middle market investments to prioritize the enterprise segment. Cikos added that the move is consistent with other software vendors in its coverage universe and reflects their efforts to advance best sales practices in the current macroeconomic backdrop.
Cikos ranks 511th among more than 9,200 analysts tracked by TipRanks. Its valuations were profitable 59% of the time and delivered an average return of 15.2%. (See MongoDB stock charts on TipRanks)
SentinelOne
Finally, let's take a look 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 costs.
Recently, TD Cowen analyst Shaul Eyal reiterated a Buy rating on SentinelOne stock with a $35 price target. The analyst believes in the company's ability to continually disrupt and gain market share in the $7 billion legacy antivirus (AV) market.
Eyal calls SentinelOne one of his top ideas for 2025 and believes having “the key ingredients at hand to make an exciting cocktail” will drive renewed acceleration in annual recurring revenue and revenue in fiscal 2026. The main drivers cited were increasing success rates and positive news, logo trends and a continually increasing share of customer spending.
Additionally, Eyal expects SentinelOne's partnership with PC maker Lenovo to improve the company's branding in the medium term, although it may not have a material impact on near-term performance. The revenue outlook for the first quarter and full fiscal year 2026 will likely prove to be the next key catalyst for the stock and determine how much the company can capitalize on recent problems among competitors CrowdStrike.
Eyal is ranked No. 8 among more than 9,200 analysts tracked by TipRanks. Its ratings were profitable 71% of the time and delivered an average return of 27%. (See SentinelOne ownership structure on TipRanks)