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: 85.930
Low
110.00
Averages
111.75
High
115.00
Current: 85.930
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.
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 Bank Celebrates National Small Business Week
- Small Business Deposit Milestone: Axos Bank announces that its small business deposits have surpassed $1 billion, reflecting the trust that business owners place in its digital banking services, indicating success in providing fast, simple, and reliable banking solutions.
- Support for Small Business Growth: Axos serves over 40,000 small business customers, assisting them in managing their daily financial needs through digital account access and business banking tools, which enhances operational efficiency and financial management capabilities for small enterprises.
- Strategic Partnerships Expand Ecosystem: Axos continues to expand its small business ecosystem through collaborations with leading payroll and merchant services companies, aiming to provide seamless payment, payroll management, and financial operations support, helping entrepreneurs operate more efficiently.
- Modern Banking Experience for Businesses: Axos is focused on building a connected ecosystem that integrates banking, payments, and payroll services, enabling small business owners to reduce financial complexity and dedicate more time to business growth, demonstrating a deep understanding of the needs of modern business ownership.
See More
Axos Financial Reports Strong Q1 Revenue Growth Despite EPS Miss
- Significant Revenue Growth: Axos Financial reported Q1 2026 revenue of $392.2 million, a 27% year-over-year increase that surpassed analyst expectations of $367.3 million, indicating strong momentum in loan origination.
- Profitability Under Pressure: Despite the revenue beat, the adjusted EPS of $1.90 fell short of the $2.13 consensus, leading to negative market reactions, highlighting the cost pressures associated with the Verdant Commercial Capital acquisition.
- Loan Growth Momentum: The company achieved $1.6 billion in net loan growth, driven by strong originations in commercial specialty real estate and auto lending, although declining prepayment rates in multifamily lending indicate some market challenges.
- AI Deployment Expansion: Axos Financial expanded its use of AI across risk, compliance, and operations, expecting further efficiency gains and reduced noninterest expenses, which will support future profitability growth.
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 Bank Celebrates National Small Business Week
- Small Business Deposit Milestone: Axos Bank announces that its small business deposits have surpassed $1 billion, reflecting the trust that business owners place in its digital banking services, indicating success in providing fast, simple, and reliable banking solutions.
- Support for Small Business Growth: Axos serves over 40,000 small business customers, assisting them in managing their daily financial needs through digital account access and business banking tools, which enhances operational efficiency and financial management capabilities for small enterprises.
- Strategic Partnerships Expand Ecosystem: Axos continues to expand its small business ecosystem through collaborations with leading payroll and merchant services companies, aiming to provide seamless payment, payroll management, and financial operations support, helping entrepreneurs operate more efficiently.
- Modern Banking Experience for Businesses: Axos is focused on building a connected ecosystem that integrates banking, payments, and payroll services, enabling small business owners to reduce financial complexity and dedicate more time to business growth, demonstrating a deep understanding of the needs of modern business ownership.
See More
Axos Financial Reports Strong Q1 Revenue Growth Despite EPS Miss
- Significant Revenue Growth: Axos Financial reported Q1 2026 revenue of $392.2 million, a 27% year-over-year increase that surpassed analyst expectations of $367.3 million, indicating strong momentum in loan origination.
- Profitability Under Pressure: Despite the revenue beat, the adjusted EPS of $1.90 fell short of the $2.13 consensus, leading to negative market reactions, highlighting the cost pressures associated with the Verdant Commercial Capital acquisition.
- Loan Growth Momentum: The company achieved $1.6 billion in net loan growth, driven by strong originations in commercial specialty real estate and auto lending, although declining prepayment rates in multifamily lending indicate some market challenges.
- AI Deployment Expansion: Axos Financial expanded its use of AI across risk, compliance, and operations, expecting further efficiency gains and reduced noninterest expenses, which will support future profitability growth.
See More
