3 New Strong Buy Ratings from Top-Rated Analysts: 01/24/2025
Western Digital Corp. (NASDAQ: WDC) shows impressive growth potential. Datadog Inc. (NASDAQ: DDOG) gets a hefty price target increase. MKS Instruments (NASDAQ: MKSI) isn’t just our Stock of the Week — it’s an analyst favorite. Here’s what Wall Street’s greatest minds are tracking RN:
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1- Western Digital Corp. (NASDAQ: WDC)
Western Digital Corp. (NASDAQ: WDC) is a storage solutions giant, powering everything from your smartphone to massive data centers with its cutting-edge hard drives and flash memory. As the world demands more data storage, WDC's innovation and strong market presence make it a stock worth watching for growth-minded investors.
Zen Rating: B (Buy) — see full analysis >
Recent Price: $68.63 — get current quote >
Max 1-year forecast: $115.00
Why we’re watching:
- Analyst support: Currently, WDC enjoys a Strong Buy consensus among the 14 analysts we track issuing ratings on the stock. See the ratings
- None of the analysts we track forecast downside for WDC in the coming year. Even the minimum 1-year price target of $70 suggests over 7% potential upside.
- How about a recent raise? Wamsi Mohan of Bank of America (a top 5% analyst) just raised their price target on WDC 5% from $80 to $84 on 1/17, while maintaining a Strong Buy rating.
- Mohan said the catalysts for their price target hike and reiterated Strong Buy rating on Western Digital were "the cyclical recovery and the upcoming split of the company's HDD and NAND businesses."
- WDC enjoys an overall Zen Rating of B (Buy), putting it in a class of stocks that have historically outperformed the market since the early 2000s.
- Each Zen Rating is composed of 7 Component Grades. WDC has extra-high grades in two key areas: Growth and Value. Of particular interest is the A grade for Growth, since growth potential drives stock prices over the long term. The indicators we track ensure that only companies with strong or underrated growth prospects make the cut. (See all 7 Zen Component Grades here >)
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2- Datadog Inc. (NASDAQ: DDOG)
Hot diggity Datadog! This analytics and monitoring platform helps enable developers and IT operations to streamline their processes and manage data. According to analysts and our proprietary ratings system, the stock has also had an excellent year (up 21%!) and appears to have strong momentum that could continue for the foreseeable future.
Zen Rating: B (Buy) — see full analysis >
Recent Price: $140.82 — get current quote >
Max 1-year forecast: $200.00
Why we’re watching:
- Analyst support: DDOG enjoys strong support from the 24 analysts we track issuing ratings: It has 12 Strong Buy, 10 Buy, and 2 Hold ratings, for a Strong Buy consensus. See the ratings
- For instance, Fatima Boolani of Citigroup (a top 6% analyst), who maintains a Strong Buy rating on DDOG, raised their price target by 8.3% from $157 to $170 on 1/1 in a 2025 preview of names in their Technology (Systems Software) sector coverage area.
- Based on improved relative growth and a "cleaner" connection to Gene AI, the analyst expressed a "generally more bullish" stance on IT Development & Operations names.
- Regarding Cybersecurity names, Citigroup remains "selectively constructive," Boolani continued.
- DDOG enjoys a B (Buy) Zen Rating, putting it in the top 20% of stocks we track.
- While the Component Grades that play into that overall rating include a few C’s, DDOG shines especially bright in two areas: Growth and Financials. This is a great combo, because it indicates that DDOG demonstrates the hallmarks of a company with growth potential, but that potential growth doesn’t come at the expense of a robust financial foundation. (See all 7 Zen Component Grades here >)
3- MKS Instruments (NASDAQ: MKSI)
It would be an oversimplification to call MKS a semiconductor stock. Yes, it provides semiconductor equipment and testing market. But it also provides specialty industrial applications and electronics and packaging — meaning the company serves a diverse group of growth industries and could provide a lower-risk way to diversify while investing in those areas.
Zen Rating: B (Buy) — see full analysis >
Recent Price: $122.69 — get current quote >
Max 1-year forecast: $156.00
Why we’re watching:
- It’s our Stock of the Week: MKSI is hot on the radar of Zen Investor Editor-in-Chief Steve Reitmeister. Here’s why, according to a recent article:
- MKSI has enjoyed powerful runs before: After a prolonged downtrend between 2021 til end of 2023, MKSI turned the corner with an average earnings beat of 41% the past 4 quarters.
- The last time the stock had run like this was coming into 2021 when shares nearly touched $200. We are quite a bit below that at a little above $120, but does give an idea of some of the upside potential if this earnings momentum run continues.
- Analyst support: There is no shortage of top analysts pounding the table on MKSI. Highlights among analysts issuing Strong Buy ratings? MKSI has a $150 target from Joseph Moore of Morgan Stanley (top 2% of all analysts for stock picking performance), and a $156 street high target recently put on by James Ricchiuti @ Needham (top 1% of all analysts).
- Digging into the Zen Ratings, MKSI ranks in the top 14% overall. Dragging them down from an even better rating is the Momentum factor because of how weak semiconductors have been of late. But that is overshadowed by the strength in other areas like top 12% Growth and top 24% Value.
- AI is also a plus factor — MKSI is in the top 29% of all stocks reviewed. Our AI rating seeks markers of stocks that outperform in the near term, and it was accurate with the recent pop from $110 to $120. Gladly there is plenty of reason to believe in more upside ahead. (See all 7 Zen Component Grades here >)
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