These 3 Overwhelmed-Down Software program program Shares Would possibly Be Setting Up for a Rebound, Says BTIG

Since late 2022, the large story in tech has been artificial intelligence. Generative and agentic AI didn’t merely seize headlines – they have been the precept driver of market useful properties and the booster rocket for the tech sector further broadly.

Nonetheless the useful properties have not been evenly unfold, and by no means every tech agency has been reaping the rewards. Publish-COVID, the software program program sector, significantly the SaaS part, observed a hunch, and hit bottom in late 2022 – merely as AI was gearing up. Merchants since then have centered on AI, with the obvious final result: software program program hasn’t pretty recovered, and the part has underperformed in 2025.

For software program program companies, the question now could possibly be whether or not or not they’ll effectively pivot their merchandise and enterprise fashions in direction of an AI-first future. The sector has confronted the identical crossroads sooner than via the shift to cloud computing, and historic previous reveals that not everyone makes it by means of the transition.

BTIG analyst Nick Altmann has been monitoring this evolution fastidiously – and in select corners of the software program program space, he sees causes to be constructive.

“Whereas software program program shares have been pressured, our analysis suggests the fundamentals inform a singular story. Measuring the ‘true’ underlying & forward-looking progress all through our safety (TTM sub. Billings, ARR, and plenty of others.) reveals comparatively safe progress over the previous ~2 years whereas FCF margins have continued to reinforce. And totally different metrics (i.e. NRR) are actually exhibiting reacceleration all through lots of names in our safety… With valuations engaging and lots of companies already having blessed CY26E estimates, we contemplate software program program shares can have a rebound yr in CY26,” Altmann opined.

Putting this view into concrete phrases, Altmann has actually useful three beaten-down software program program shares as Buys for the approaching months. They’re headed for a rebound, he says; and we’re ready to take a look at the TipRanks info, and his suggestions, to resolve if these software program program names are correct for proper now’s market.

OneStream (OS)

OneStream, the Michigan-based enterprise software program program company, with a cope with the financial firms sector, is the first software program program stock we’ll check out proper right here. The company funds itself as ‘the working system for modern finance,’ and offers its purchasers a cloud-based AI platform that lets its clients reconcile info and deal with workarounds, liberating up time and energy for his or her further essential enterprise options.

OneStream boasts that its finance platform is unique inside the enterprise. It choices embedded AI, as an automation instrument, and unifies financial and operational info. The system is adaptable, capable of evolving to satisfy the altering needs of each purchaser’s enterprise. The company states that its platform brings quantifiable advantages, along with a 54% time low cost in closing books, a 72% low cost in info administration cycles, and a 75% enchancment in reporting cycles.

These capabilities – to adapt, and to hold measurable useful properties – are a big selling degree for OneStream, and the company in the meanwhile has over 1,700 purchasers on its books, served by over 1,600 staff. The company has operations in further than 45 worldwide areas – it has a presence inside the Americas, Europe, and the Asia-Pacific space.

We must always at all times remember proper right here that OneStream’s stock has been falling this yr. The shares are down roughly 36% for the year-to-date, similtaneously revenues and earnings have been trending upwards.

A check out the ultimate earnings report, which lined 3Q25, brings further aspect to the earnings and revenues. The company reported earnings of $154.3 million, up 19% year-over-year and just about $6 million larger than had been anticipated. The underside line, the non-GAAP EPS, bought right here to eight cents, beating the forecast by 6 cents per share. And, moreover of curiosity, the company’s free cash motion jumped year-over-year, from $1.3 million to $4.8 million.

Watching OneStream from BTIG, Nick Altmann sees a great deal of potential for progress proper right here, writing of the company, “No matter shares underperforming YTD, OS is able to develop >20% in FY25E, and a giant, under-digitized TAM (~$50B) provides OS with vital runway to drive continued progress sturdiness over the MT. We contemplate merchants keep concerned over potential disruption to software program software program program from GenAI, though we see the Office of the CFO as further insulated vs. totally different areas of apps and see OS’ platform as well-positioned to drive further digitization inside the office of the CFO given its data-centricity (increasingly important), extensible construction, and broadening AI reply set.”

The analyst goes on to elucidate why this stock must make a superb portfolio addition, together with to the above, “Moreover, we keep upbeat on OS’ different to grab market share contained in the Industrial part, and our checks advocate its new CPM Categorical product solves down-market pain-points, and we see an opportunity for bigger Industrial bookings train to help not solely formulate a further sturdy progress profile however moreover current larger bookings uniformity as Enterprise transformation stays lumpy. Lastly, whereas we keep impressed on OS’ different to drive continued top-class progress, a rapidly bettering FCF profile must current valuation help. As such, we see a compelling hazard vs. reward profile in every the near time interval and the medium time interval…”

These suggestions once more up Altmann’s Buy rating on the shares, whereas his $25 value objective implies a one-year purchase of 37.5%. (To take a look at Altmann’s monitor report, click on on proper right here)

OneStream’s shares are selling for $18.18, and the $28.27 frequent objective value signifies a 55.5% purchase for the approaching yr. The stock’s Sturdy Buy consensus rating relies on 14 evaluations, along with 13 Buys and 1 Preserve. (See OS stock forecast)

GitLab (GTLB)

GitLab, the next software program program agency we’re having a look at proper right here, has constructed a reputation inside the fields of software program program development, security, and operations. The company first launched its open-source DevSecOps platform in 2011, and since then it has constructed itself up on the freemium model. The open-source construction of the software program program platform implies that anyone can write enhancements to the underside code, whether or not or not as an offering to the company or just to tweak his private receive – nevertheless further superior upgrades and devices may be discovered for paying subscription clients.

The GitLab software program program platform is designed from the keel as a lot as let clients unify their DevSecOps devices. It’s an technique that inherently smooths out workflows; the addition of AI experience and devices brings added advantages. These embrace in-platform software program program assistants, automation devices, troubleshooting, and even code analysis. The company’s AI is obtainable by means of the free packages, nevertheless further superior subscriptions embrace bigger efficiency.

GitLab by the numbers, it’s clear that the product is in model. GitLab has better than 50 million registered clients, and better than 5,000 code contributors. There have been 170 consecutive month-to-month releases of platform and code updates. GitLab is trusted by quite a few the most important names in enterprise, along with Nvidia, Goldman Sachs, and T-Mobile. We must always at all times remember, nonetheless, that shares in GTLB are down by 32% this yr.

On the financial aspect, GitLab reported $244.4 million in earnings for its last fiscal quarter, 3Q26. That decide was up 25% year-over-year and beat the forecast by merely over $5 million. The company’s non-GAAP EPS, 25 cents, was 2 cents larger than the prior yr and beat expectations by a nickel per share. GitLab reported an adjusted free cash motion of $27.2 million for the quarter.

In his safety of this stock, analyst Altmann elements out quite a few components that must current help going forward, writing, “GenAI is resulting in an explosion in software program program development, and we lastly see GenAI as a net-positive for GTLB as developer tooling can purchase add’l funds authority. And whereas GTLB has been behind its mates relating to AI monetization, its cohesive technique stays encouraging, differentiated, and its new Duo Agent Platform offering is able to develop into sometimes on the market very shortly. 3Q26 outcomes had been mixed as SMB and Public Sector weighed on upside to estimates, though GTLB continues to positively shock on the margin aspect of the equation (we est. 22% FCF margins in FY26E) and we see rising margins providing a valuation backstop for shares.”

For Altmann, this all gives as a lot as a Buy rating, and his $52 value objective implies a one-year upside potential of 37%.

There are 25 present analyst evaluations on report for GTLB shares, and the 16 to 9 reduce up, favoring Buy over Preserve, gives them a Common Buy consensus rating. The $38.07 shopping for and promoting value and $54.57 frequent objective value collectively advocate a 12-month share appreciation of 43%. (See GTLB stock forecast)

monday.com (MNDY)

Ultimate on our guidelines proper right here is monday.com. This agency, based mostly in 2012, provides its purchasers a line of cloud-based work administration software program program. This generally is a topic that trendy digital workplaces are discovering increasingly in model – the software program program and platforms allow clients to hint workflows, organize duties and collaboration, cope with CRM, promoting, product sales ops, system optimizations – nearly each factor that an office needs in proper now’s setting. monday.com’s platforms are completely customizable and are cloud-based.

For the fashionable office, considered one of many larger choices monday.com provides is its use of AI. By incorporating AI into the platform, the company permits its clients to straightforward out the time-consuming components of workflow administration. Duties like info analysis, categorization, and sorting will probably be automated, along with communications paying homage to emails. In addition to, the AI can automate schedules and translations. It’s a sound software program that quickens methods by making the easy-but-time-consuming duties go sooner.

monday.com boasts that its platform is extraordinarily in model with the ‘Fortune 500’ names and that it is trusted by some 60% of those companies. These embrace such massive names as Coca-Cola, Carrefour, and Lionsgate. In all, better than a quarter-million enterprise purchasers – of all scales – are using monday.com. And better than 3,993 of those purchasers carry with them over $50,000 in annual recurring earnings.

monday.com shares have been falling this yr, coping with hits from components as guides that did not measure as a lot as expectations. As an illustration, for the fourth quarter of this yr, the company’s earnings outlook, set between $328 million and $330 million, bought right here in lower than the consensus view of $333.79 million. Shares on this agency now current a 38% year-to-date decline.

Nonetheless, the outcomes have been sturdy. Throughout the third quarter of this yr, monday.com observed earnings of $316.9 million. This marked a 26% year-over-year enhance and was $4.59 million larger than had been anticipated. On the bottom line, the non-GAAP diluted internet earnings per share of $1.16 beat the forecast by 28 cents per share. monday.com experiences sturdy progress in annual recurring earnings (ARR) and, importantly, experiences that 10% of your entire ARR is now derived from new merchandise.

The BTIG view of monday.com, laid out by Allan Verkhovski, signifies robust progress metrics ahead for this stock; the analyst says, “Shares in the meanwhile are shopping for and promoting at 4.6x EV/Product sales and 16x EV/FCF on CY26E… We contemplate this presents a extraordinarily engaging entry degree as points spherical weaker than anticipated financial outcomes from MNDY shifting AI-impacted Google internet optimization spend are, in our opinion, overblown (drives merely ~10% of NNARR). MNDY is exhibiting it isn’t solely a Work Administration agency as we estimate ARR from new merchandise of ~ $133M (10% of complete) is rising +84% y/y. Within the meantime, MNDY is accelerating its GTM approach by means of multi-product progress (enterprise product bundles), shifting upmarket (reply selling and outbound), and purchaser retention (adjustments to variable comp plans). This collectively drives administration’s confidence (and ours) that MNDY can attain $1.8B of earnings in FY27 (2-year CAGR of 21%).”

Quantifying his stance, Verkhovski expenses MNDY shares as a Buy, with a $210 value objective that signifies room for an upside of 44% by the tip of 2026. (To take a look at Verkhovski’s monitor report, click on on proper right here)

The 20 analyst scores on this stock break all the best way all the way down to 18 Buys and a pair of Holds, for a Sturdy Buy consensus rating. monday.com shares are selling for $145.52, and their $239.05 frequent value objective implies a purchase of 64% on the one-year horizon. (See MNDY stock forecast)

To hunt out good ideas for shares shopping for and promoting at engaging valuations, go to TipRanks’ Biggest Shares to Buy, a instrument that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed on this text are solely these of the featured analyst. The content material materials is supposed to be used for informational capabilities solely. This can be very important to do your private analysis sooner than making any funding.

Disclaimer & DisclosureReport an Concern