Key Points
-
History says the S&P 500 could advance 26% in the next year, and most Wall Street analysts see The Trade Desk and Okta as undervalued stocks at current prices.
-
The Trade Desk operates the leading independent adtech platform for media buyers, and the adtech market is projected to expand at 14% annually through 2030.
-
Okta is a leader in identity and access management, a market where spending is forecast to grow at 12% annually through 2030 as more businesses deploy AI agents.
-
These 10 stocks could mint the next wave of millionaires ›
The S&P 500 (SNPINDEX: ^GSPC) added 20.5% during the two-month period that ended on June 9, 2025. The index has only achieved a two-month return above 20% on five other occasions since 1950, and that momentum led to an average gain of 31% during the next 12 months.
Since the S&P 500 closed at 6,006 on June 9, that suggests the index will climb 31% to 7,868 by next June — if its performance aligns with the historical average. That implies 26% upside from its current level of 6,230. Of course, past performance is never a guarantee of future returns, but investors can lean into historical trends, as long as they maintain a long-term mindset.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
With that in mind, most Wall Street analysts see The Trade Desk (NASDAQ: TTD) and Okta (NASDAQ: OKTA) as undervalued stocks at their current prices, as detailed below:
-
Among 41 analysts, The Trade Desk has a median target price of $84 per share. That implies 15% upside from its current share price of $73.
-
Among 47 analysts, Okta has a median target price of $130 per share. That implies 34% upside from its current share price of $97.
Here’s what investors should know about these magnificent stocks.
Image source: Getty Images.
1. The Trade Desk
The Trade Desk operates the leading independent demand-side platform (DSP) in the adtech industry. Its software leans on artificial intelligence (AI) to help media buyers plan, measure, and optimize advertising campaigns across digital channels. The company has the dominant DSP in connected-TV advertising due to partnerships with streaming giants Disney, Netflix, and Roku.
The Trade Desk reported solid first-quarter financial results. Revenue increased 25% to $616 million, and non-GAAP net income increased 27% to $0.33 per diluted share. “We continue to grow at a rate significantly higher than the broader digital marketing industry and gain market share,” CEO Jeff Green told analysts.
Investors have good reason to believe the company can maintain its momentum. Adtech spending is forecast to increase at 14% annually through 2030, and Frost & Sullivan recently ranked The Trade Desk as a leader in adtech innovation. Furthermore, its independent business model is better aligned with customers, compared to competitors.
To elaborate, The Trade Desk doesn’t own media, so it has no reason to steer advertisers toward specific inventory. Instead, it succeeds by helping them find the best opportunities across the internet. Comparatively, Alphabet‘s Google and Meta Platforms have a clear incentive to steer media buyers toward inventory on their websites, a clear conflict of interest.
The Trade Desk has another tailwind in that all clients are expected to upgrade to its Kokai platform by year-end. Kokai, launched in 2023, features new AI tools that assist clients with optimizing targeting and bidding algorithms to ensure strong campaign results. The Trade Desk has further embraced AI by partnering with Rembrand, a business that helps brands create advertising content with generative AI.
Wall Street expects the company’s earnings to increase at 11% annually through 2026. That makes the current valuation of 42 times earnings look expensive. But I think analysts are underestimating the company.
The Trade Desk has historically gained market share, and adtech spending is forecast to grow at 14% annually through 2030. Moreover, The Trade Desk beat the consensus estimate by an average of 13% in the last four quarters.
2. Okta
Okta is a leader in identity and access management (IAM) software. IAM is a cybersecurity framework that lets administrators set permissions for people and devices, so only the right users have access to sensitive applications and corporate resources. The Okta platform leans on artificial intelligence to authenticate login requests and continuously assess risk.
Th company has a strong presence in workforce identity and customer identity. The former uses prebuilt integrations to secure common software products, and the latter lets developers integrate identity into custom software. Forrester Research has recognized Okta as a leader in workforce identity, and KuppingerCole has ranked the company as a leader in customer identity.
Okta reported encouraging first-quarter financial results, beating estimates on the top and bottom lines. Revenue increased 12% to $688 million, and non-GAAP net income increased 32% to $0.86 per diluted share. However, the stock sold off following the report because on the earnings call, management mentioned macroeconomic uncertainty and chose not to raise full-year guidance.
IAM is already critical, given that identity-based attacks account for 30% of all cybersecurity incidents, but it will become increasingly important as more businesses deploy AI agents. Autonomous systems must be governed to ensure they only access appropriate resources and only perform permitted tasks. Grand View Research estimates IAM spending will grow at 12.6% annually through 2030.
Wall Street estimates Okta’s adjusted earnings will increase at 10% annually through fiscal 2027, which ends in April 2027. That makes the present valuation of 32 times earnings look somewhat expensive, but I think analysts are too pessimistic. Not only is the broader IAM market forecast to grow more quickly, but Okta also beat the consensus earnings estimate by an average of 12% in the last four quarters.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
-
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $410,385!*
-
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,857!*
-
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $695,481!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of July 7, 2025
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Roku and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Netflix, Okta, Roku, The Trade Desk, and Walt Disney. The Motley Fool has a disclosure policy.
