Wolfe Research Top Stock Picks – 12‑Month Outlook (Published 20‑08‑2026)
Wolfe Research released an analyst note identifying three equities it expects to deliver superior performance over the next twelve months, focusing on Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOGL) and DoorDash Inc (NYSE:DASH). The firm highlighted each company’s margin‑expansion potential, operational efficiencies and exposure to high‑growth markets such as cloud computing, digital advertising and food‑delivery services.
Amazon.com Inc
Wolfe projects Amazon Web Services (AWS) operating income and margins to accelerate sharply, with low‑40% revenue growth anticipated in the third quarter and at least mid‑40% growth in the fourth quarter, translating into high‑30% year‑over‑year growth overall. AWS margins are expected to improve due to operational efficiencies, a product‑mix shift that includes the Bedrock service, and continued core business expansion. For Amazon’s retail segment, Wolfe forecasts low double‑digit percentage growth and sustained margin expansion driven by internal cost‑efficiency gains, higher advertising revenue and regionalisation of operations. The firm considers the current valuation reasonable on a growth‑adjusted basis. Amazon also announced an expansion of its planned Louisiana data‑center investment to $18 billion, adding a third campus to the region. Additionally, Rosenblatt Securities initiated coverage of Amazon with a buy rating, citing strong AWS growth expectations.
Alphabet Inc
Wolfe sees upside to Google Cloud Platform revenue and margins, anchored by significant sales of Tensor Processing Units (TPUs) projected for 2027 and 2028. The research team argues that Alphabet is the best‑positioned internet mega‑cap, leveraging a fully vertically integrated value proposition, leadership in Search, and strategic assets such as Waymo, Anthropic, SpaceX investments and YouTube. These assets expose Alphabet to some of the largest total addressable markets. Near‑term risk is noted around the Gemini launch, which could keep the stock range‑bound; however, Wolfe expects a Gemini 4 launch to act as a clearing event with TPU sales as a key catalyst. Valuation is deemed highly reasonable at 23 times 2027 earnings per share. In recent developments, Google entered into a significant custom silicon agreement with Marvell Technology, and YouTube is reportedly in advanced discussions with the NBA to create a streaming hub for local team broadcasts.
DoorDash Inc
Wolfe anticipates upside to consensus revenue growth and 2027 EBITDA for DoorDash, driven by product initiatives, resilient customer demand, grocery expansion, international market share gains and improving unit economics. Growth levers include the DashPass subscription service, autonomous delivery pilots, deeper merchant integrations and an expanding advertising business. The firm does not expect material increases in capital investments after 2026; instead, international expansion and grocery/retail initiatives are expected to offset technology platform spending. DoorDash reported second‑quarter revenue of $4.5 billion, a 36% year‑over‑year increase. Following the earnings release, analysts at Susquehanna and UBS raised their price targets on the stock.
Overall Assessment
The note, generated with AI assistance and edited by Investing.com staff, concludes that each of the three highlighted companies offers attractive upside on a growth‑adjusted valuation basis, supported by sector‑specific tailwinds and company‑specific operational initiatives.