Analysts Expect 15% Growth for VIOO Holdings in the Future
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 09 2025
0mins
Source: NASDAQ.COM
ETF Analysis: The Vanguard S&P Small-Cap 600 ETF (VIOO) has an implied analyst target price of $127.16, indicating a potential upside of 14.63% from its current trading price of $110.93.
Notable Holdings: Key underlying holdings with significant upside potential include Axos Financial Inc (24.01% upside), California Resources Corp (23.69% upside), and Addus HomeCare Corp (23.54% upside), based on their respective analyst target prices.
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Analyst Views on AX
Wall Street analysts forecast AX stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 100.730
Low
110.00
Averages
111.75
High
115.00
Current: 100.730
Low
110.00
Averages
111.75
High
115.00
About AX
Axos Financial Inc. is the holding company for Axos Bank (the Bank), Axos Clearing LLC and Axos Invest, Inc. The Bank provides consumer and commercial banking products through its digital online and mobile banking platforms. Its segments include Banking Business and Securities Business. The Banking Business Segment includes a broad range of banking services, including online banking, concierge banking, and mortgage, vehicle and unsecured lending through online, low-cost distribution channels to serve the needs of consumers and small businesses nationally. In addition, the Banking Business Segment focuses on depositing products nationwide to industry verticals. The Securities Business Segment includes the clearing broker-dealer, registered investment advisor custody business, and introducing broker-dealer lines of businesses. These lines of business offer products independently to their own customers as well as to Banking Business Segment clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Axos Acquires Arc Technologies to Accelerate Digital Strategy
- Acquisition Overview: Axos Nevada Holding, LLC has announced its acquisition of Arc Technologies, Inc., a financial technology platform, aiming to accelerate its digital strategy by integrating cash management and capital markets capabilities, with the transaction expected to close in July 2026.
- Technology Integration: The AI-powered financial software solutions provided by Arc will enhance Axos' service capabilities, enabling it to better serve millions of small businesses in the U.S. that are often underserved by traditional banking systems.
- Team and Resource Synergy: Axos CEO Greg Garrabrants highlighted that Arc's exceptional team and modern technology platform will combine with Axos' diverse products and capital resources to create a compelling digital banking solution that caters to businesses throughout their lifecycle.
- Market Outlook: This acquisition not only enhances Axos' AI capabilities but also aims to improve operational efficiency through Arc's financial intelligence infrastructure and automation tools, further solidifying the company's market position in the fintech sector.
See More
Axos Nevada Acquires Arc Technologies to Enhance Financial Services
- Acquisition Agreement: Axos Nevada has entered into a definitive agreement to acquire Arc Technologies, a financial technology platform for tech and growth companies, with the transaction expected to close in July 2026, thereby enhancing Axos's market position in financial services.
- Technological Integration: Founded in 2021, Arc Technologies offers integrated cash management, capital markets, and AI-driven financial software solutions designed to help businesses manage cash flow, access debt financing, and streamline financial operations, thus enhancing Axos's service capabilities.
- Small Business Service Enhancement: This acquisition is set to improve Axos Nevada's ability to serve millions of small businesses in the U.S. that are underserved by traditional banks, likely increasing its market penetration and customer base in this segment.
- AI Capability Expansion: By leveraging Arc's financial intelligence infrastructure and automated workflow tools, Axos will enhance its AI capabilities, aiming to provide deeper insights and improve operational efficiency, thereby maintaining a competitive edge in the fast-evolving fintech market.
See More
Analysis of Banking Sector Outlook and Investment Recommendations
- Banking Sector Underperformance: Over the past six months, the banking industry's return of 7.5% has lagged the S&P 500 by 2.5 percentage points, indicating investor caution due to concerns over economic slowdown and potential credit deterioration.
- Truist Financial Struggles: Truist Financial (TFC), with a market cap of $60.28 billion, has seen only 1.6% annual net interest income growth over the past five years, with flat earnings per share, reflecting management challenges in fund allocation; currently trading at $47.90 per share with a P/B ratio of 1.
- East West Bank's Strong Growth: East West Bank (EWBC), valued at $16.87 billion, boasts a 13.9% annual net interest income growth over five years and a 17.9% growth in earnings per share, highlighting its unique position in U.S.-Asia cross-border transactions; currently priced at $123.09 per share with a P/B of 1.7.
- Axos Financial's Outstanding Performance: Axos Financial (AX), with a market cap of $4.90 billion, has achieved an 18.6% annual net interest income growth and an 18.1% growth in earnings per share over the past five years, benefiting from a high-yield loan book and low funding costs, trading at $86.08 per share with a P/B of 1.5.
See More
Ategra Capital Reduces Stake in Axos Financial
- Stake Reduction Details: Ategra Capital reduced its stake in Axos Financial by 39,577 shares in Q1 2026, with an estimated transaction value of $3.61 million, indicating a cautious approach towards its holdings in the company.
- Ownership Proportion Change: Following the reduction, Ategra's position in Axos stands at 113,765 shares, representing 4.81% of its 13F reportable AUM, reflecting a strategic risk management stance in the banking sector.
- Financial Performance Highlights: Axos Financial reported a year-over-year net income increase of 18.5% to $124.7 million in Q3, showcasing its strong performance and competitive edge in the digital banking space.
- Future Growth Potential: Despite potential economic downturn risks, Axos management projects continued growth in loans and deposits, suggesting that the core business maintains solid momentum.
See More
Ategra Capital Management Reduces Axos Financial Stake
- Stake Reduction: Ategra Capital Management sold 39,577 shares of Axos Financial in Q1, with an estimated transaction value of $3.61 million, reflecting a cautious approach amid market volatility.
- Value Decline: The quarter-end value of Axos Financial's position decreased by $3.53 million, indicating a 1.79% impact on the fund's AUM due to trading and price movements, highlighting the uncertainty in the market environment.
- Quarterly Performance: Despite the reduction, Axos Financial reported an 18.5% year-over-year increase in net income to $124.7 million in Q3, showcasing its strong performance and competitiveness in the digital banking sector.
- Future Outlook: With loan balances reaching $25 billion and total deposits increasing by 11% to $22.4 billion, management's projections for continued loan growth and deposit expansion suggest that the core business still has momentum, despite potential economic slowdown risks.
See More
Shopify Reports Strong Earnings but Cautious Outlook Raises Concerns
- Significant Revenue Growth: Shopify's Q1 revenue surged 34% year-over-year to $3.17 billion, exceeding Wall Street's estimate of $3.09 billion, showcasing its robust performance in the e-commerce sector.
- Operating Income Doubles: Operating income nearly doubled to $382 million, reflecting the company's success in its higher-margin product mix, but this came with a notable increase in transaction and loan losses.
- Rising Loan Losses: Transaction and loan losses rose 55% to $116 million, now accounting for 3.7% of total revenue, a trend that could pressure future profitability and requires close monitoring by management.
- Cautious Outlook: The company guided for revenue growth in the “high-twenties” percentage range for the next quarter, which, while still strong, indicates a deceleration from the current quarter's pace, potentially prompting a reevaluation of its market valuation.
See More
Axos Acquires Arc Technologies to Accelerate Digital Strategy
- Acquisition Overview: Axos Nevada Holding, LLC has announced its acquisition of Arc Technologies, Inc., a financial technology platform, aiming to accelerate its digital strategy by integrating cash management and capital markets capabilities, with the transaction expected to close in July 2026.
- Technology Integration: The AI-powered financial software solutions provided by Arc will enhance Axos' service capabilities, enabling it to better serve millions of small businesses in the U.S. that are often underserved by traditional banking systems.
- Team and Resource Synergy: Axos CEO Greg Garrabrants highlighted that Arc's exceptional team and modern technology platform will combine with Axos' diverse products and capital resources to create a compelling digital banking solution that caters to businesses throughout their lifecycle.
- Market Outlook: This acquisition not only enhances Axos' AI capabilities but also aims to improve operational efficiency through Arc's financial intelligence infrastructure and automation tools, further solidifying the company's market position in the fintech sector.
See More
Axos Nevada Acquires Arc Technologies to Enhance Financial Services
- Acquisition Agreement: Axos Nevada has entered into a definitive agreement to acquire Arc Technologies, a financial technology platform for tech and growth companies, with the transaction expected to close in July 2026, thereby enhancing Axos's market position in financial services.
- Technological Integration: Founded in 2021, Arc Technologies offers integrated cash management, capital markets, and AI-driven financial software solutions designed to help businesses manage cash flow, access debt financing, and streamline financial operations, thus enhancing Axos's service capabilities.
- Small Business Service Enhancement: This acquisition is set to improve Axos Nevada's ability to serve millions of small businesses in the U.S. that are underserved by traditional banks, likely increasing its market penetration and customer base in this segment.
- AI Capability Expansion: By leveraging Arc's financial intelligence infrastructure and automated workflow tools, Axos will enhance its AI capabilities, aiming to provide deeper insights and improve operational efficiency, thereby maintaining a competitive edge in the fast-evolving fintech market.
See More
Analysis of Banking Sector Outlook and Investment Recommendations
- Banking Sector Underperformance: Over the past six months, the banking industry's return of 7.5% has lagged the S&P 500 by 2.5 percentage points, indicating investor caution due to concerns over economic slowdown and potential credit deterioration.
- Truist Financial Struggles: Truist Financial (TFC), with a market cap of $60.28 billion, has seen only 1.6% annual net interest income growth over the past five years, with flat earnings per share, reflecting management challenges in fund allocation; currently trading at $47.90 per share with a P/B ratio of 1.
- East West Bank's Strong Growth: East West Bank (EWBC), valued at $16.87 billion, boasts a 13.9% annual net interest income growth over five years and a 17.9% growth in earnings per share, highlighting its unique position in U.S.-Asia cross-border transactions; currently priced at $123.09 per share with a P/B of 1.7.
- Axos Financial's Outstanding Performance: Axos Financial (AX), with a market cap of $4.90 billion, has achieved an 18.6% annual net interest income growth and an 18.1% growth in earnings per share over the past five years, benefiting from a high-yield loan book and low funding costs, trading at $86.08 per share with a P/B of 1.5.
See More
Ategra Capital Reduces Stake in Axos Financial
- Stake Reduction Details: Ategra Capital reduced its stake in Axos Financial by 39,577 shares in Q1 2026, with an estimated transaction value of $3.61 million, indicating a cautious approach towards its holdings in the company.
- Ownership Proportion Change: Following the reduction, Ategra's position in Axos stands at 113,765 shares, representing 4.81% of its 13F reportable AUM, reflecting a strategic risk management stance in the banking sector.
- Financial Performance Highlights: Axos Financial reported a year-over-year net income increase of 18.5% to $124.7 million in Q3, showcasing its strong performance and competitive edge in the digital banking space.
- Future Growth Potential: Despite potential economic downturn risks, Axos management projects continued growth in loans and deposits, suggesting that the core business maintains solid momentum.
See More
Ategra Capital Management Reduces Axos Financial Stake
- Stake Reduction: Ategra Capital Management sold 39,577 shares of Axos Financial in Q1, with an estimated transaction value of $3.61 million, reflecting a cautious approach amid market volatility.
- Value Decline: The quarter-end value of Axos Financial's position decreased by $3.53 million, indicating a 1.79% impact on the fund's AUM due to trading and price movements, highlighting the uncertainty in the market environment.
- Quarterly Performance: Despite the reduction, Axos Financial reported an 18.5% year-over-year increase in net income to $124.7 million in Q3, showcasing its strong performance and competitiveness in the digital banking sector.
- Future Outlook: With loan balances reaching $25 billion and total deposits increasing by 11% to $22.4 billion, management's projections for continued loan growth and deposit expansion suggest that the core business still has momentum, despite potential economic slowdown risks.
See More
Shopify Reports Strong Earnings but Cautious Outlook Raises Concerns
- Significant Revenue Growth: Shopify's Q1 revenue surged 34% year-over-year to $3.17 billion, exceeding Wall Street's estimate of $3.09 billion, showcasing its robust performance in the e-commerce sector.
- Operating Income Doubles: Operating income nearly doubled to $382 million, reflecting the company's success in its higher-margin product mix, but this came with a notable increase in transaction and loan losses.
- Rising Loan Losses: Transaction and loan losses rose 55% to $116 million, now accounting for 3.7% of total revenue, a trend that could pressure future profitability and requires close monitoring by management.
- Cautious Outlook: The company guided for revenue growth in the “high-twenties” percentage range for the next quarter, which, while still strong, indicates a deceleration from the current quarter's pace, potentially prompting a reevaluation of its market valuation.
See More
