Axos Financial, Inc. Common Stock (AX)

Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.

A number of stocks fell in the morning session after a surprisingly weak July jobs report and the announcement of sweeping new tariffs fueled fears of an economic slowdown and an impending interest rate cut. 

Digital banking company Axos Financial (NYSE:AX) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 10.5% year on year to $321.4 million. Its non-GAAP profit of $1.94 per share was 7% above analysts’ consensus estimates.

Digital banking company Axos Financial (NYSE:AX) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 4.8% year on year to $308.8 million. Its non-GAAP profit of $1.81 per share was 4.3% above analysts’ consensus estimates.

Axos Advisor Services, which had around $28 billion in assets under custody as of March 31, "is a hidden gem," Kyle Peterson says.

Axos Financial posted solid results in fiscal 2025's Q2 despite facing challenges in non-interest income.