Axos Financial, Inc. (NYSE:AX) is one of the most undervalued growth stocks to buy, according to analysts. On March 9, DA Davidson reiterated a Buy rating on Axos Financial (NYSE:AX) with a $112 price target, impressed by its prospects as an internet-based bank.

The research firm has touted the company’s prospects as a digital bank backed by a mix of commercial lending segments, mass-market, and specialty deposit verticals. The branchless structure strengthens the company’s edge in driving nimbleness and profitability.

Therefore, Axos Financial enjoys a cost advantage over other institutions, enabling it to offer higher deposit rates to its customers. In addition, it has successfully developed a streamlined procedure within its operating structure, as it also develops a digital platform to enhance integration across all business lines.

The unique business model was the catalyst behind Axos Financial delivering impressive second-quarter fiscal 2026 results, with earnings per share totaling $2.25 against $2.07 expected and revenues totaling $385.1 million, compared to $347.25 million expected.

Axos Financial, Inc. (NYSE:AX) is a technology-driven financial services holding company that operates a digital-first, branchless banking model (Axos Bank) along with securities clearing and investment advisory services. It provides high-yield checking/savings accounts, commercial banking, mortgages, and automated investing to individuals and businesses nationwide, without physical branches.

While we acknowledge the potential of AX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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