Analysts Believe These Stocks Will Perform Well in the Long Run

Despite concerns about high valuations in the U.S. stock market, several stocks stand out as promising investments due to their strong future growth potential. Investors looking to identify such opportunities can benefit from the insights of Wall Street analysts, who conduct in-depth research to highlight a company’s strengths and growth drivers.

‍

Here are three stocks currently favored by top analysts, as reported by TipRanks, a platform that evaluates analyst performance.

‍

GitLab (GTLB)

GitLab, an AI-driven software development company, has been making waves with its robust tools for developers. The company recently announced impressive third-quarter fiscal 2025 results and raised its full-year forecast, citing strong demand for its end-to-end DevSecOps platform.

‍

BTIG analyst Gray Powell reiterated his bullish outlook on GitLab following its earnings report. He raised his price target from $63 to $86, noting that GitLab’s third-quarter revenue exceeded BTIG’s expectations by 4%, while its operating income and earnings per share significantly outperformed estimates. Powell attributed the company’s continued success to increasing demand and its strong market positioning.

‍

Powell highlighted several key metrics, such as growth in remaining performance obligations (RPO), current RPO (CRPO), and the net retention rate (NRR), all of which indicate GitLab’s potential to sustain its elevated growth trajectory. He also emphasized the growing adoption of GitLab’s Ultimate bundle and rising customer seat counts. Powell sees further growth drivers, including new product launches and a recovery in hiring trends within the software sector.

‍

GitLab’s valuation, with an enterprise value (EV) to sales multiple of 12.0x based on 2026 estimates, is reasonable for a company projected to achieve sustained 25%+ growth while improving its operating and free cash flow margins, Powell explained.

‍

Ranked 775th among over 9,200 analysts on TipRanks, Powell has delivered profitable ratings 57% of the time, achieving an average return of 10.5%.

‍

MongoDB (MDB)

Next on the list is MongoDB, a leading database software company. The firm recently delivered a standout performance in its fiscal third quarter, driven by strong demand for its Enterprise Advanced (EA) and Atlas offerings. However, its stock dipped following the announcement that Chief Operating and Financial Officer Michael Gordon will step down at the end of the fiscal year on January 31, 2025.

‍

Despite the leadership transition, Needham analyst Mike Cikos remains optimistic. He reaffirmed a buy rating on MongoDB and increased his price target from $335 to $415, a 24% boost. Cikos attributed the company’s revenue beat primarily to the EA segment, which is central to MongoDB’s “run anywhere” strategy, allowing organizations to deploy applications across devices, on-premises data centers, and the cloud.

‍

While the Atlas platform played a smaller role in the revenue beat compared to EA, it outperformed Needham’s expectations, with daily Atlas consumption rising to 6.4% sequentially from 5.9% in the prior quarter. Cikos also praised MongoDB’s reallocation of mid-market investments to prioritize the enterprise segment, a move reflecting broader trends among software companies adapting to the current economic climate.

‍

Ranked 511th out of over 9,200 analysts on TipRanks, Cikos has achieved profitable ratings 59% of the time, delivering an average return of 15.2%.

‍

SentinelOne (S)

The final stock is SentinelOne, an AI-driven cybersecurity firm that has shown resilience despite challenges. Earlier this month, the company reported stronger-than-expected third-quarter revenue for fiscal 2025. However, its loss per share widened due to higher operating costs.

‍

TD Cowen analyst Shaul Eyal remains confident in SentinelOne’s growth prospects. He reaffirmed a buy rating on the stock and set a price target of $35. Eyal highlighted the company’s ability to disrupt and gain market share in the $7 billion legacy antivirus market, calling SentinelOne one of his top investment ideas for 2025.

‍

Eyal pointed to several factors that could drive revenue growth in fiscal 2026, including increasing win rates, positive trends in new customer acquisitions, and a rising share of client spending. He also noted SentinelOne’s partnership with Lenovo, which could enhance its branding over the medium term, though it may not have an immediate impact on performance.

‍

Eyal sees the company’s upcoming fiscal 2026 revenue guidance as a crucial catalyst, especially as SentinelOne positions itself to benefit from challenges faced by rival CrowdStrike.

‍

Ranked 8th out of over 9,200 analysts on TipRanks, Eyal has an impressive track record, with 71% of his ratings proving profitable and an average return of 27%.

‍