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GitLab Inc. (GTLB) Beats Stock Market Upswing: What Investors Need to Know

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The latest trading session saw GitLab Inc. (GTLB - Free Report) ending at $56.38, denoting a +0.53% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.02%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.1%.

The the stock of company has fallen by 5.08% in the past month, leading the Computer and Technology sector's loss of 5.13% and undershooting the S&P 500's loss of 3.01%.

Analysts and investors alike will be keeping a close eye on the performance of GitLab Inc. in its upcoming earnings disclosure. In that report, analysts expect GitLab Inc. to post earnings of -$0.04 per share. This would mark year-over-year growth of 33.33%. In the meantime, our current consensus estimate forecasts the revenue to be $165.66 million, indicating a 30.56% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $0.21 per share and a revenue of $729.36 million, demonstrating changes of +5% and +25.77%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for GitLab Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GitLab Inc. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, GitLab Inc. is holding a Forward P/E ratio of 273.56. This signifies a premium in comparison to the average Forward P/E of 28.83 for its industry.

We can also see that GTLB currently has a PEG ratio of 11.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.76.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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