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. That said, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where its enthusiasm might be excessive.
One Stock to Sell:
MongoDB (MDB)
Consensus Price Target: $394.68 (17.5% implied return)
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Why Is MDB Not Exciting?
- Complex implementation process for enterprise clients means customers take longer to ramp up, as seen in its extended payback periods
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
- Free cash flow margin is forecasted to shrink by 4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
MongoDB’s stock price of $335.78 implies a valuation ratio of 8.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MDB.
Two Stocks to Watch:
DigitalOcean (DOCN)
Consensus Price Target: $178.77 (17.7% implied return)
Built for simplicity in a world of complex cloud solutions, DigitalOcean (NYSE: DOCN) provides a simplified cloud computing platform that enables developers and small businesses to quickly deploy and scale applications.
Why Is DOCN on Our Radar?
- Average billings growth of 17.6% over the last year enhances its liquidity and shows there is steady demand for its products
- Exciting sales outlook for the upcoming 12 months calls for 30.7% growth, an acceleration from its two-year trend
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $151.95 per share, DigitalOcean trades at 12.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Ross Stores (ROST)
Consensus Price Target: $256.18 (22.7% implied return)
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ: ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Is ROST a Good Business?
- New store openings and solid same-store sales performance have boosted its top-line growth
- Same-store sales growth averaged 5.4% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Ross Stores is trading at $208.83 per share, or 27x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
