3 Key Reasons to Buy Gitlab stock Despite an 18% surge in 3 months

Core Insights - GitLab (GTLB) shares have increased by 17.8% over the past three months, outperforming the broader Zacks Computer & Technology sector's growth of 8.5% and the Zacks Internet - Software industry's decline of 12.9% [1][9] - The surge in GitLab's stock reflects heightened investor confidence in its AI-native DevSecOps platform, which is seeing accelerating customer adoption and an expanding market opportunity due to enterprise AI transformation [2][5] GitLab's Strategic Positioning - GitLab is establishing itself as a leader in AI-native DevSecOps, with its Duo Agent Platform facilitating integrated software development across various environments [5][10] - The platform's AI-orchestrated architecture supports human-AI collaboration throughout the software lifecycle, enhancing flexibility and avoiding vendor lock-in [7][10] Financial Performance and Growth Projections - The Zacks Consensus Estimate for GitLab's fiscal 2026 revenues is $940.15 million, indicating a year-over-year growth of 32.12% [6][14] - The fiscal third-quarter Remaining Performance Obligation is estimated at $1.07 billion, reflecting a 31.5% year-over-year increase, indicating deepening enterprise engagement [11] Valuation and Market Position - GitLab's stock trades at a forward price-to-sales multiple of 7.09X, higher than the sub-industry average of 4.95X and the sector average of 6.75X, suggesting strong growth prospects [12][14] - The Zacks Consensus Estimate for fiscal 2026 earnings is 83 cents per share, indicating a year-over-year growth of 12.16% [14] Competitive Advantages - GitLab's cloud-neutral strategy allows seamless deployment across major cloud platforms, enhancing its competitive position as enterprises adopt hybrid and multi-cloud architectures [11][16] - The company's focus on SaaS and Dedicated offerings is driving recurring revenue and improving customer engagement, particularly in regulated industries [10][15]