Investor sentiment has been rattled by fears of an AI-driven bubble and broader macroeconomic challenges. But rather than focusing on short-term swings, many experts suggest zeroing in on quality stocks with strong fundamentals and long-term growth prospects.
Wall Street’s top analysts, backed by extensive research, can provide valuable guidance in spotting such opportunities. According to TipRanks, a platform that tracks and ranks analyst performance, here are three stocks favored by leading experts.
First on the list is cybersecurity leader Palo Alto Networks, which recently impressed the Street with its fiscal fourth-quarter 2025 results. Not only did earnings surpass expectations, but management also issued upbeat guidance for the first quarter and full year ahead.
Following the report, RBC Capital’s Matthew Hedberg reiterated a buy rating on PANW and set a 12-month price target of $232. TipRanks’ AI Analyst also gives the stock an “outperform” rating, albeit with a slightly lower price target of $197.
“The bottom line is that the quarter and outlook reinforce that the proposed CyberArk acquisition is being made from a position of strength, quashing concerns about organic weakness,” Hedberg wrote.
Hedberg emphasized the company’s solid finish to fiscal 2025, noting that both results and guidance exceeded expectations across all metrics. He attributed this momentum to robust demand for Palo Alto’s XSIAM platform, AI-driven software firewall solutions, and growth in Secure Access Service Edge (SASE) offerings.
The analyst also highlighted Palo Alto’s ambitious Fiscal 2028 goal targeting over 40% free cash flow margins for the combined Palo Alto-CyberArk entity. Hedberg views the current risk/reward profile as attractive, citing PANW as a key AI beneficiary that remains insulated from broader AI-related risks in other software sectors.
Ranked No. 94 out of 10,000 analysts on TipRanks, Hedberg boasts a 65% success rate and an impressive average return of 19.2%. See Palo Alto Networks statistics on TipRanks.
Next up is MongoDB, a leading database software provider. The stock jumped after the company delivered stellar fiscal second-quarter 2026 results and issued strong guidance.
Stifel analyst Brad Reback reaffirmed a buy rating and raised his price target to $325 from $275, calling it “one of the strongest quarters in the company’s history.” For comparison, TipRanks’ AI Analyst sees MDB at $241 with an “outperform” rating.
Reback pointed out that MongoDB’s Q2 revenue beat consensus by roughly 7%, driven by strength in both its Atlas cloud database and Enterprise Advanced businesses. Revenue upside, combined with cost discipline, also helped the company deliver an operating margin of 14.7%, surpassing expectations by over 4 percentage points.
What stood out most? Growth in Atlas, powered by increased consumption across its existing customer base, 2,800 new client additions, and early benefits from AI-related workloads.
Reback expects Atlas to maintain 25%+ revenue growth, supported by steady consumption, improved sales execution, and an expanding product portfolio.
Currently ranked No. 760 on TipRanks, Reback’s calls have been profitable 52% of the time, with an average return of 10.2%. See MongoDB ownership structure on TipRanks.
Finally, International Flavors & Fragrances, a global supplier of flavors, fragrances, and specialty ingredients, is gaining attention as it sharpens its focus on high-margin businesses. Recently, IFF announced the divestiture of its soy crush, concentrate, and lecithin operations a move aimed at optimizing its portfolio.
Tigress Financial’s Ivan Feinseth reiterated a buy rating with a price target of $105, while TipRanks’ AI Analyst remains more cautious with a neutral view and a target of $65.
Feinseth praised IFF’s ongoing strategic initiatives, which include innovation in high-value products, balance sheet improvements, and margin expansion. He believes the company is well-positioned to benefit from health-focused consumer trends, thanks to its robust pipeline of functional ingredients, expertise in sensory science and biotechnology, and strong partnerships with global brands.
The analyst also highlighted shareholder-friendly moves: IFF paid $102 million in dividends during Q2 2025 and authorized a $500 million share buyback program.
Ranked No. 205 on TipRanks, Feinseth boasts a 64% success rate with an average return of 14.9%. See IFF technical analysis on TipRanks.
Despite market jitters and AI bubble talk, these three analyst-backed names Palo Alto Networks, MongoDB, and International Flavors & Fragrances stand out for their strong fundamentals, strategic initiatives, and growth potential.
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