December 24, 2024

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Amid concerns about overvaluation in the U.S. stock market, several stocks remain attractive for their promised future growth potential.

To select such stocks, investors can follow recommendations from Wall Street experts who conduct in-depth analysis to provide useful insights into a company’s strengths and growth opportunities.

Here are three popular stocks Wall Street’s Top ProfessionalsAccording to TipRanks, the platform ranks analysts based on their past performance.

GitLab

Let’s start this week GitLab (GTLB), an artificial intelligence company that provides software development tools. The company recently reported solid results for the third quarter of fiscal 2025 and raised its full-year guidance, citing demand for its end-to-end DevSecOps platform.

Following Q3 print, BTIG analysts Gray Powell It reiterated its buy rating on GTLB and raised its price target from $63 to $86, saying the company’s third-quarter revenue exceeded BTIG’s expectations by 4%, and operating income and earnings per share were significantly higher than expected. He added that the unexpected increase in revenue over the year reflected strong demand and market positioning.

Powell pointed to some positives, including the strength of key metrics such as remaining performance obligation (RPO), current RPO (CRPO) and net retention rate (NRR), as well as rising adoption of the company’s Ultimate bundle. He said these solid fundamental metrics indicate that GitLab is well-positioned to maintain high growth rates in the future. GitLab is also poised to benefit from additional tailwinds, including new product launches and an increase in customer numbers, with software recruiting trends expected to improve next year.

Overall, GitLab’s enterprise value (EV)/sales multiple of 12.0x (based on calendar year 2026 estimates) “is reasonable to achieve 25%+ sustainable growth, operating margins and (free cash) (Streaming) profit margins are improving rapidly, and there is an upward bias in the forecast,” analysts said.

Powell ranks No. 775 among more than 9,200 analysts tracked by TipRanks. His ratings were profitable 57% of the time, with an average return of 10.5%. (look Insider trading activity at GitLab on prompt ranking)

MongoDB

The next option is MongoDB(MDB). The database software company beat analysts’ expectations in its fiscal third quarter on strong demand for its Enterprise Advanced (EA) and Atlas products. But the stock fell as chief operating officer and chief financial officer Michael Gordon resigned at the end of the fiscal year on Jan. 31, 2025.

For the impressive results, Needham analysts Mike Sickles MDB reiterated its buy rating and raised its target price by 24% from $335 to $415, emphasizing that EA issuance is the main driver of third-quarter revenue growth.

Cikos expects EA to continue to exceed investor expectations, thanks to MongoDB’s “run anywhere” strategy, which enables organizations to deploy applications anywhere – across devices, local data centers and the cloud.

Cikos added that while the Atlas product contributed less to revenue growth compared to EA, it performed beyond Needham’s expectations, with Atlas daily consumption accelerating to 6.4% from 5.9% in the previous quarter. Additionally, analysts noted the company’s decision to reallocate certain mid-market investments to prioritize the enterprise segment. Cikos added that this measure matches other software vendors in his coverage and reflects their efforts to develop best sales practices in the current macroeconomic context.

Cikos is ranked No. 511 among more than 9,200 analysts tracked by TipRanks. His ratings were profitable 59% of the time, with an average return of 15.2%. (look MongoDB stock chart on prompt ranking)

Sentinel One

Finally let’s take a look Sentinel One (S), a cybersecurity company powered by artificial intelligence. Earlier this month, the company reported better-than-expected revenue for the third quarter of fiscal 2025.

Recently, TD Cowen analysts Shaul Eyal Reiterate a Buy rating on SentinelOne stock with a price target of $35. The analyst believes the company has the ability to continue to disrupt and gain share in the $7 billion traditional antivirus (AV) market.

Calling SentinelOne one of his top ideas for 2025, Eyal believes the “key ingredients are in place to make an exciting cocktail” and drive annual recurring revenue and revenue re-acceleration in fiscal 2026. Key drivers mentioned include improved win rates, positive new business sign trends and rising share of customer spend.

Additionally, Eyal expects SentinelOne’s tie-up with PC maker Lenovo to strengthen its brand image in the medium term, although it may not have any material impact on near-term results. The revenue outlook for the first quarter and full year of fiscal 2026 could be the next major catalyst for the stock, determining how well the company can capitalize on its competitors’ recent woes. mass strike.

Eyal ranks No. 8 among more than 9,200 analysts tracked by TipRanks. His ratings were profitable 71% of the time, with an average return of 27%. (look SentinelOne Equity Structure on prompt ranking)

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