The first stock pick recommended by Wall Street analysts is project management software provider Monday.com (MNDY). The company reported impressive second-quarter results and raised its full-year outlook, driven by strong demand from large customers. In fact, the number of paid customers with more than $100,000 in annual recurring revenue (ARR) increased by 49% to 1,009. As a result, TD Cowen analyst Derrick Wood raised his firm’s price target for MNDY to $300 from $275 and reiterated a buy rating. He highlighted the solid demand for Monday.com’s products among high-paying customers, noting that the company recently secured its largest deal ever with a multinational healthcare company. Wood believes that this deal is a sign that Monday.com is successfully moving up-market and expanding its platform sales. He also mentioned that Monday.com expects its net dollar retention (NDR) rate to remain stable around 110% through fiscal 2024, with a potential upside by the end of the year. Wood is ranked No. 197 among more than 8,900 analysts tracked by TipRanks, with a success rate of 60% and an average return of 13.3%.
Another top stock pick is CyberArk Software (CYBR), an identity security company that posted strong second-quarter results and raised its full-year outlook. Baird analyst Shrenik Kothari reaffirmed a buy rating on CYBR stock and increased his price target to $315 from $295. He highlighted the company’s strong net new annual recurring revenue (NNARR) in Q2, as well as its solid new business acquisitions and expansion of business among existing customers. Kothari emphasized that CYBR’s workforce identity and machine identity solutions are significant growth drivers. Despite macroeconomic challenges, Kothari is optimistic about the demand for CyberArk’s identity security solutions due to an evolving threat landscape. He believes that the stock’s premium valuation compared to peers is justified, given its shift to recurring revenues and market leadership position. Kothari is ranked No. 196 among more than 8,900 analysts tracked by TipRanks, with a success rate of 72% and an average return of 22.7%.
The third stock pick recommended by analysts is wireless network provider T-Mobile US (TMUS). The company recently reported better-than-expected second-quarter results and raised its full-year guidance for postpaid net customer additions and cash flows. Tigress Financial Partners analyst Ivan Feinseth reiterated a buy rating on TMUS stock and increased his price target by 15% to $235. Feinseth highlighted T-Mobile’s outperformance in customer additions and service revenue growth, driven by its ultra capacity 5G high-speed network. He mentioned that T-Mobile’s network reaches 98% of Americans, with its ultra capacity 5G network covering over 330 million people. Additionally, Feinseth sees opportunities in fixed wireless access (FWA) for the company. T-Mobile also returned $3 billion to shareholders in Q2 2024 through dividends and share repurchases. Feinseth is ranked No. 239 among more than 8,900 analysts tracked by TipRanks, with a success rate of 60% and an average return of 11.9%.
These top stock picks by Wall Street analysts showcase companies with strong performance, growth potential, and promising outlooks for investors looking to make informed decisions in the market. It is important to consider the recommendations of seasoned analysts who have a track record of success in their predictions and can provide valuable insights into the future prospects of these companies.