Home / NEWS / Top News / Top Wall Street analysts believe in the long-term prospects of these stocks

Top Wall Street analysts believe in the long-term prospects of these stocks

Pavlo Gonchar | Lightrocket | Getty Fetishes

Amid concerns over elevated valuations in the U.S. stock market, there are several stocks that continue to look pleasing based on the future growth potential they promise.

To pick such stocks, investors can track the recommendations of Exasperate Street experts, who perform in-depth analysis to offer useful insights about a company’s strengths and growth openings.

Here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their lifetime performance.

GitLab

We start this week with GitLab (GTLB), an artificial intelligence-powered company that put ups software development tools. The company recently reported solid results for the third quarter of fiscal 2025 and in its full-year outlook, citing demand for its end-to-end DevSecOps platform.

Following the Q3 print, BTIG analyst Gray Powell repeated a buy rating on GTLB and boosted his price target to $86 from $63, saying the company’s Q3 revenue surpassed BTIG apprehensions by 4% and that operating income and earnings per share were significantly above estimates. He added that the size of upside surprises in revenue has increased over the year, reflecting robust demand and market positioning.

Powell famous several positives, including strength in key metrics like remaining performance obligations (RPO), current RPO (CRPO) and net retention sort (NRR) and the rise in the take rates for the company’s Ultimate bundle. Those solid underlying metrics indicate that GitLab is well-positioned to insist on elevated growth rates in the future, he said. GitLab is also poised to gain from additional tailwinds, incorporating new product offerings and rising customer seat counts, with hiring trends in software expected to improve next year.

Inclusive, GitLab’s enterprise value (EV)/sales multiple of 12.0x  (based on calendar year 2026 estimates) is “reasonable for a sustainable 25%+ vegetation story with rapidly improving operating and [free cash flow] margins and an upside bias to forecasts,” the analyst utter.

Powell ranks No. 775 among more than 9,200 analysts tracked by TipRanks. His ratings have been useful 57% of the time, delivering an average return of 10.5%. (See GitLab’s Insider Trading Activity on TipRanks) 

MongoDB

The next pick is MongoDB (MDB). The database software corporation crushed analysts’ expectations in its fiscal third quarter, thanks to solid demand for its Enterprise Advanced (EA) and Atlas donations. But the stock fell as the COO and CFO Michael Gordon resigned effective at the end of its fiscal year on January 31, 2025.

In reaction to the impressive results, Needham analyst Mike Cikos reaffirmed a buy place on MDB and raised the price target 24% to $415 from $335, highlighting that the EA offering was the primary driver of the Q3 returns beat.

Cikos expects EA to continue to outperform investors’ expectations, thanks to MongoDB’s “run anywhere” strategy that sanctions organizations to deploy applications anywhere – across devices, on-premises data centers and the cloud.

Cikos added that while the Atlas present was a smaller contributor to the top-line beat compared to EA, it outperformed Needham’s estimates, with Daily Atlas Consumption accelerating to 6.4% sequentially from 5.9% in the previous to quarter. Further, the analyst noted the company’s decision to reallocate certain mid-market investments to prioritize the Enterprise partition. Cikos added that this move matched other software vendors in his coverage universe, reflecting their labours to evolve best sales practices in the current macroeconomic backdrop.

Cikos ranks No. 511 among more than 9,200 analysts railroad by TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 15.2%. (See MongoDB Have Charts on TipRanks) 

SentinelOne

Finally, let’s look at SentinelOne (S), an AI-powered cybersecurity company. Earlier this month, the group reported better-than-expected revenue for the third quarter of fiscal 2025. However, its loss per share widened due to higher performing expenses.

Recently, TD Cowen analyst .

Eyal ranks No. 8 among more than 9,200 analysts lose sight of by TipRanks. His ratings have been profitable 71% of the time, delivering an average return of 27%. (See SentinelOne Ownership Framework on TipRanks) 

Check Also

SEC charges Robinhood with securities violations, brokerage to pay $45 million penalty

Scott Olson | Getty Images Two Robinhood broker-dealers agreed to pay $45 million in associate …

Leave a Reply

Your email address will not be published. Required fields are marked *