2 Top Bargain Stocks Ready for a Bull Run

The article identifies UiPath (PATH) and GitLab (GTLB) as two undervalued tech stocks offering significant upside. UiPath, trading at a P/S multiple below 4.5x 2026 estimates with over 80% gross margins, is strategically pivoting its robotic process automation (RPA) leadership to AI agent orchestration, evidenced by recent partnerships with Alphabet, OpenAI, and Snowflake, alongside 11% ARR growth and improved operating margins. GitLab, with a forward P/S under 7x and near 90% gross margins, is expanding its DevSecOps platform with its AI-powered Duo Agent and a new hybrid seat-plus-usage pricing model, consistently growing revenue above 25% and presenting a long-term growth opportunity at a cheap valuation.

Analysis

The article highlights UiPath (PATH) and GitLab (GTLB) as compelling investment opportunities within the tech sector, trading at attractive valuations despite the broader market's high levels. UiPath is noted with a price-to-sales (P/S) multiple below 4.5x 2026 estimates and gross margins exceeding 80%, while GitLab carries a forward P/S under 7x with near 90% gross margins. Both companies are positioned as high-growth software-as-a-service (SaaS) entities.

UiPath is strategically leveraging its robotic process automation (RPA) leadership by pivoting into AI agent orchestration, a critical need as AI evolves. This strategy is bolstered by recent collaborations with industry giants like Alphabet, OpenAI, and Snowflake. The company demonstrated an 11% rise in annual recurring revenue (ARR) last quarter and stabilized net revenue retention at 108%, alongside improved operating margins due to cost efficiencies.

GitLab, a DevSecOps platform, is expanding its offering with the AI-powered Duo Agent, designed to significantly enhance developer productivity. The company consistently achieves revenue growth above a 25% clip. A strategic shift to a hybrid seat-plus-usage pricing model aims to better capture value from increased solution usage and provide resilience against potential future shifts in developer headcount.

Both companies exhibit strong fundamental characteristics and are strategically aligned with the burgeoning AI trend, suggesting significant long-term growth potential. Their current valuations, coupled with robust gross margins and clear growth drivers, present a bullish outlook for institutional investors.

Key Decisions for Investors

• Investors should consider initiating or increasing long-term positions in UiPath (PATH) and GitLab (GTLB), given their attractive valuations and strong alignment with the high-growth AI and software development sectors.
• Monitor UiPath's execution in AI agent orchestration and the tangible benefits derived from its strategic partnerships, which are crucial for sustained ARR growth and market leadership.
• Evaluate GitLab's success in driving adoption of its AI-powered Duo Agent and the effectiveness of its new hybrid pricing model in capturing increased value and maintaining revenue expansion.