Amid concerns about elevated valuations in the U.S. stock market, certain stocks remain appealing due to their promising growth potential. Investors often rely on Wall Street experts, who conduct in-depth analyses, to identify companies with significant strengths and growth opportunities.
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Here are three stocks currently favored by leading analysts, according to TipRanks, a platform that ranks analysts based on their performance.
GitLab (GTLB)
GitLab is an AI-powered company providing software development tools through its end-to-end DevSecOps platform. The company recently delivered robust third-quarter fiscal 2025 results and raised its full-year outlook, citing strong demand for its solutions.
Following the earnings report, BTIG analyst Gray Powell reiterated a Buy rating on GitLab and increased his price target from $63 to $86. Powell highlighted that GitLab's Q3 revenue exceeded expectations by 4%, while operating income and earnings per share also outperformed estimates.
He noted that GitLab has seen consistent positive surprises in revenue throughout the year, reflecting robust demand and a solid market position.
Powell also emphasized the strength in key metrics such as remaining performance obligations (RPO), current RPO (CRPO), and net retention rate (NRR). Additionally, the company’s Ultimate bundle has seen an increase in adoption.
Powell believes GitLab is well-positioned to sustain high growth rates with tailwinds like new product offerings and rising customer adoption expected in the coming years.
GitLab’s valuation, with an enterprise value-to-sales (EV/sales) multiple of 12.0x based on 2026 estimates, is reasonable for a company projected to sustain over 25% growth along with improving margins, Powell added.
Analyst Insight:
Powell ranks No. 775 out of over 9,200 analysts tracked by TipRanks, with a 57% success rate and an average return of 10.5%.
(See GitLab’s Insider Trading Activity on TipRanks.)
MongoDB (MDB)
MongoDB, a leading database software provider, recently exceeded analysts’ expectations for its fiscal third quarter. The strong results were driven by its Enterprise Advanced (EA) and Atlas offerings. However, the announcement of COO and CFO Michael Gordon’s resignation, effective January 31, 2025, led to a stock dip.
Despite this, Needham analyst Mike Cikos maintained a Buy rating on MongoDB and raised his price target from $335 to $415, an increase of 24%. Cikos highlighted that MongoDB’s EA offering was the primary driver behind its Q3 revenue beat. The EA product enables organizations to deploy applications flexibly, whether on devices, in on-premises data centers, or in the cloud.
Cikos also noted that while Atlas contributed less to the revenue beat, its performance was still strong, with Daily Atlas Consumption accelerating sequentially to 6.4% from 5.9% in the prior quarter.
MongoDB’s strategic decision to shift investments toward the Enterprise segment aligns with broader trends in the software industry, where companies are refining their sales strategies in response to the current macroeconomic climate.
Analyst Insight:
Cikos ranks No. 511 out of over 9,200 analysts on TipRanks, with a 59% success rate and an average return of 15.2%.
(See MongoDB Stock Charts on TipRanks.)
SentinelOne (S)
SentinelOne, an AI-driven cybersecurity firm, recently reported stronger-than-expected revenue for its fiscal third quarter of 2025, although its per-share loss widened due to higher operating expenses.
TD Cowen analyst Shaul Eyal reiterated a Buy rating on SentinelOne and set a price target of $35. Eyal views SentinelOne as a disruptive force in the $7 billion legacy antivirus market, with strong potential to gain market share. He identified key growth drivers for fiscal 2026, including rising client spending, increasing win rates, and positive trends in acquiring new clients.
Eyal also highlighted SentinelOne’s partnership with Lenovo, predicting it will bolster the company’s branding in the medium term. Although this partnership may not have an immediate financial impact, upcoming revenue projections for the first quarter and fiscal 2026 will likely serve as a significant catalyst for the stock. SentinelOne’s performance may also benefit from the challenges faced by rival CrowdStrike.
Analyst Insight:
Eyal ranks No. 8 out of over 9,200 analysts on TipRanks, boasting a 71% success rate and an average return of 27%.
(See SentinelOne Ownership Structure on TipRanks.)
Conclusion
Despite broader concerns about market valuations, GitLab, MongoDB, and SentinelOne stand out as attractive investment opportunities, backed by strong fundamentals and optimistic forecasts from top analysts. As these companies continue to innovate and capture market share, they remain well-positioned for long-term growth.
