Why GitLab (GTLB) and Axos (AX) Are Advancing Today

GitLab (GTLB) and Axos Financial (AX) are climbing 7.5% and 3.5%, respectively. GTLB’s products allow its customers to develop software, while Axos is a bank.

Both companies were included by investment bank Needham today on its list of 23 top stocks to buy for 2025.

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Needham’s View on GTLB

Needham noted that GitLab’s fiscal Q3 revenue had come in 4.6% above the midpoint of the IT company’s guidance range. Moreover, GTLB’s margins have been climbing for an extended period, the bank reported.

Despite those positive developments, GTLB stock had declined about 7% between the company’s release of its Q3 results and yesterday. As a result, Needham contended that the shares were attractive.

Needham placed an $85 price target on the shares.

Analysts, on average, expect the company’s earnings per share to soar to 63 cents this year from 20 cents last year.

Needham’s Outlook on AX

Axos is poised to benefit from “higher for longer” interest rates, Needham contended. What’s more, Axos’ sales and profit margins can exceed expectations if fewer of the bank’s loans are paid back early and higher rates make its longer-term loans more lucrative, Needham believes.

Needham placed an $85 price target on AX.

Analysts, on average, expect the company’s earnings per share to rise to $7.04 this year from $6.74 last year.

While we acknowledge the potential of GTLB, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GTLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.