25 December 2024

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Amid concerns about soaring valuations in the US stock market, there are several stocks that still look attractive based on the future growth potential they promise.

To choose such stocks, investors can follow the recommendations of Wall Street experts, who perform in-depth analysis to provide useful insights into the strengths and growth opportunities of the company.

Here are three stocks he likes Best street prosAccording to TipRanks, a platform that ranks analysts based on their past performance.

getlab

We start this week with getlab (GTLB), an artificial intelligence company that provides software development tools. The company recently reported strong third-quarter fiscal 2025 results and raised its full-year outlook, citing demand for its comprehensive DevSecOps platform.

After the third quarter print, BTIG analyst Gray Powell He reiterated a buy rating on GTLB and boosted his price target to $86 from $63, saying the company's third-quarter revenue beat BTIG's forecast by 4% and that operating income and earnings per share were well above estimates. He added that the magnitude of upside revenue surprises had increased throughout the year, reflecting strong demand and market conditions.

Powell pointed to several positives, including strength in key metrics such as remaining performance obligations (RPO), current RPO (CRPO), net retention rate (NRR) and an uptick in take rates for the company's Ultimate package. These strong fundamental metrics indicate that GitLab is well positioned to maintain high growth rates into the future, he said. GitLab is also poised to benefit from additional tailwinds, including new product offerings and higher customer seat counts, with software hiring 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 for a sustained 25%+ growth story with rapid improvement in operating margins and (free cash flow) and an upward bias to the outlook,” The analyst said.

Powell is ranked No. 775 out of more than 9,200 analysts tracked by TipRanks. Its evaluations were profitable 57% of the time, generating an average return of 10.5%. (See GitLab internal trading activity on TipRanks)

MongoDB

The next choice is MongoDB (MDB). The database software company beat analysts' expectations in its fiscal third quarter, thanks to strong demand for its Enterprise Advanced (EA) and Atlas offerings. But the stock fell with the resignation of Chief Operating Officer and CFO Michael Gordon effective at the end of the fiscal year on January 31, 2025.

In reaction to the impressive results, analyst Needham said: Mike Sikus It reaffirmed a Buy rating on MDB and raised its price target by 24% to $415 from $335, highlighting that EA's offering was the key driver of Q3 revenue outperformance.

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

Cikos added that although the Atlas offering was a smaller contributor to top results compared to EA, it beat Needham's estimates, with Daily Atlas consumption accelerating to 6.4% sequentially from 5.9% in the previous quarter. Furthermore, the analyst noted the company's decision to reallocate some mid-market investments to prioritize the enterprise sector. Sikus added that the move matches other software vendors in its coverage universe, reflecting their efforts to develop best sales practices in the current macroeconomic light.

Cikos is ranked No. 511 out of more than 9,200 analysts tracked by TipRanks. Its evaluations were profitable 59% of the time, and generated an average return of 15.2%. (See MongoDB stock charts on TipRanks)

Guardian One

Finally, let's look Guardian One (S), an artificial intelligence cybersecurity company. Earlier this month, the company reported better-than-expected revenue for the third quarter of fiscal 2025. However, the loss per share widened due to higher operating expenses.

Recently, analyst TD Cowen Shaul Eyal It reaffirmed a Buy rating on SentinelOne stock with a price target of $35. The analyst believes in the company's ability to continually disrupt and win share in the $7 billion legacy antivirus (AV) market.

Considering Sentinel as one of his best ideas for 2025, Eyal believes that “key ingredients are on hand to make an exciting cocktail” and drive the re-acceleration of revenue and annual recurring revenue in FY2026. The main drivers cited were increased win rates, and new positive results. Logo trends and the ever-increasing share of customer spending.

In addition, Eyal expects SentinelOne's partnership with PC maker Lenovo to strengthen its brand in the medium term, although it may not have any material impact on near-term performance. Revenue forecasts for the first quarter and full year of fiscal 2026 will likely prove the next major catalyst for the stock, determining how well the company can capitalize on recent woes at competitors. Crowd Strike.

Eyal ranks eighth out of more than 9,200 analysts tracked by TipRanks. Its reviews were profitable 71% of the time, and generated an average return of 27%. (See SentinelOne Ownership Structure on TipRanks)

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