Top Wall Street analysts favor these 3 stocks for their growth potential

The stock market continues to be volatile as concerns about the elevated valuations of artificial intelligence stocks impact investor sentiment. Investors looking beyond short-term noise might want to consider enhancing their portfolios with stocks having attractive long-term growth potential.

To that end, top Wall Street analysts can help investors pick the right stocks, as their recommendations are based on in-depth analysis of a company’s fundamentals and growth potential.

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

Credo Technology

This week’s first pick is Credo Technology (CRDO), a provider of connectivity solutions for AI-driven applications, cloud computing, and hyperscale networks. Credo reported upbeat results for the second quarter of Fiscal 2026, generating a 272% surge in revenue.

Impressed by the Q2 performance, Bank of America analyst Vivek Arya boosted the price target for Credo stock to $240 from $165 and reiterated a buy rating, calling it a top small-midcap pick and including it among his favorite AI picks, with the others being chip giants Nvidia, Broadcom and Advanced Micro Devices. TipRanks’ AI Analyst has an outperform rating on CRDO stock with a price target of $194.

Arya highlighted that Credo’s top line figures increased by double digits sequentially and triple digits year over-year for the fourth straight quarter, driven by strength in the company’s active electrical cable, or AEC product line. He added that new customer acquisition and product diversification are vital for the company’s future sales.

The analyst also noted that despite some concerns about growing competition from rivals like Marvell Technology and Astera Labs, Credo expects mid-single-digit quarter-over-quarter sales growth throughout fiscal 2026 and fiscal 2027. This optimism is backed by the expansion of AEC adoption at four large hyperscalers and the beginning of revenue contribution from a fifth customer.

“In total, we now see up to $10bn TAM [total addressable market] for CRDO, driven by its system-level electrical/optical solutions that leverage its in-house SerDes [Serializer-Deserializer technology],” said Arya. Assuming a 50% market share, or about $5 billion in annual sales, the analyst sees the possibility of Credo delivering earnings per share of about $10 to $11 at 45% net margin.

Arya ranks No. 203 among more than 10,100 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 17.4%.

MongoDB

We move on to database software provider MongoDB (MDB). The company recently saw its stock rally after reporting better-than-expected results for the third quarter of fiscal 2026 and issuing a strong outlook. MongoDB attributed its performance to the consistent demand for its Atlas platform.

Following the Q3 print, Stifel analyst Brad Reback reiterated a buy rating on MongoDB stock and raised the price target to $450 from $375. However, TipRanks’ AI Analyst has a neutral rating on MDB stock with a price target of $352.

Reback noted the continued acceleration in Atlas growth, with revenue from this platform growing by 30% in Q3 FY26. This growth was driven by a steady increase in consumption and robust new customer additions of 2,600 in the third quarter. Meanwhile, Reback explained that about two-thirds of the outperformance in MDB’s Enterprise Advanced (EA)/non-Atlas revenue was driven by greater-than anticipated multi-year deals.

Furthermore, the analyst highlighted that MongoDB’s third-quarter operating margin exceeded expectations by an impressive 750 basis points, thanks to a strong revenue beat and the shift in timing of some investments to Q4 FY26 and fiscal 2027. Consequently, management increased its full-year operating margin outlook to 18% from 14%.

Overall, Reback is confident that MongoDB will be able to maintain more than 20% growth in Atlas revenue in the years ahead, driven by a “large and growing market, improving consumption trends, an expanding set of core and emerging growth drivers, and a growing legacy migration opportunity.”

Reback ranks No. 753 among more than 10,100 analysts tracked by TipRanks. His ratings have been successful 51% of the time, delivering an average return of 9.90%. See MongoDB Statistics on TipRanks. 

Walmart

Finally, let’s look at big-box retailer Walmart (WMT). The company delivered healthy results for the third quarter of fiscal 2026, driven in part by strength in its e-commerce business and membership growth.

On Dec. 3, Tigress Financial analyst Ivan Feinseth reaffirmed a buy rating on Walmart stock and bumped up his price forecast to $130 from $125. The analyst expects the retailer to generate robust revenue and profitability growth, supported by “technology-driven scale and AI acceleration.”

The 5-star analyst discussed how Walmart is using technology to automate supply chain and in-store processes to drive operating efficiencies. Feinseth also noted the company’s efforts to enhance its omnichannel fulfillment capabilities, store-fulfilled pickup and delivery, and other initiatives to bolster its logistics, which have helped in driving e-commerce sales higher.

Additionally, Feinseth highlighted Walmart’s growing use of AI, including offering generative AI-based shopping experiences with OpenAI’s ChatGPT. The analyst is also impressed with the company’s focus on “high-margin, capital-light” growth drivers, such as retail media, Walmart Connect, memberships, health and wellness, and financial services, which are boosting its profitability.

Overall, Feinseth is bullish on Walmart and believes that it deserves a premium valuation compared to the conventional brick-and-mortar retailers, given its massive scale, brand value, and solid execution, in addition to its focus on technology and AI-centric strategy. Like Feinseth, TipRanks’ AI Analyst is also optimistic about WMT, and has an outperform rating with a price target of $122.

Feinseth ranks No. 386 among more than 10,100 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, delivering an average return of 12.6%. See Walmart Financials on TipRanks.