Wolfe Research Identifies Top Stock Picks for Next 12 Months
Wolfe Research has identified its top stock picks for the next 12 months and beyond, focusing on companies positioned for significant growth in cloud computing, digital advertising, and food delivery sectors.
The research firm's analysis highlights three companies with strong margin expansion potential, operational efficiencies, and exposure to high-growth markets: Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOGL), and DoorDash Inc (NYSE:DASH).
Wolfe Research expects upside to AWS operating income and margins for Amazon, alongside revenue growth. The firm anticipates accelerating AWS growth throughout the year, with low-40% growth in the third quarter and at least mid-40% in the fourth quarter.
In contrast, Wolfe sees upside to Google Cloud Platform revenue and margins for Alphabet, driven by meaningful TPU sales in 2027 and 2028. The research firm believes Google is the best-positioned company among Internet mega caps due to its fully vertically integrated value proposition, Search leadership, Waymo, Anthropic, and SpaceX investments.
For DoorDash, Wolfe Research sees upside to consensus revenue growth and 2027 EBITDA driven by product initiatives, resilient customer demand, stickiness, grocery expansion, international share gains, and improving unit economics.