When looking for potential stocks to invest in, it is crucial to rely on the insights of top Wall Street analysts. These analysts conduct in-depth analysis of companies’ financials and future prospects before making any recommendations. One such stock recommended by the Street’s top pros is project management software provider Monday.com (MNDY).
The company recently impressed investors with its second-quarter results and raised its full-year outlook, thanks to strong demand from large customers. In fact, the number of paid customers with more than $100,000 in annual recurring revenue (ARR) increased significantly, showing a positive trend for the company. In response to these robust results, TD Cowen analyst Derrick Wood raised his price target for MNDY and reiterated a buy rating, highlighting the solid demand for Monday.com’s products among high-paying customers.
Wood’s optimism is based on the fact that Monday.com is successfully moving up-market and becoming more of a platform sale, as evidenced by winning its largest deal ever with a multinational healthcare company. Additionally, the company’s net dollar retention rate is expected to remain stable, with management projecting continued growth in the upcoming years. These factors, along with upmarket traction and pricing tailwinds, are strong growth vectors that Wood believes will drive continued execution into the second half of the year.
CyberArk Software (CYBR)
Another tech company favored by analysts is CyberArk Software (CYBR). The identity security company recently posted upbeat second-quarter results and raised its full-year outlook, citing durable demand for its platform. Baird analyst Shrenik Kothari reaffirmed a buy rating on CYBR stock and raised his price target, emphasizing the strong net new annual recurring revenue in Q2 and the expansion of business among existing customers.
Kothari believes that CYBR’s workforce identity and machine identity solutions are major growth catalysts for the company, supporting its premium valuation compared to peers. Despite macroeconomic challenges, Kothari remains optimistic about the demand for CyberArk’s identity security solutions due to an evolving threat landscape. The pending acquisition of Vanafi is also expected to enhance CyberArk’s position in the machine identity security market, further bolstering its growth prospects.
T-Mobile US (TMUS)
The third stock pick recommended by Wall Street 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, highlighting T-Mobile’s outperformance in terms of customer additions and services revenue growth.
Feinseth is particularly impressed by T-Mobile’s ultra capacity 5G high-speed network, which is driving subscriber growth and higher revenue and cash flow. With a vast network coverage reaching 98% of Americans and an increased focus on fixed wireless access opportunities, T-Mobile is well-positioned for growth in the coming years. Additionally, the company’s commitment to shareholder returns, as evidenced by its significant returns in Q2 2024, further strengthens its investment appeal.
These three stocks recommended by top Wall Street analysts show strong growth potential and favorable outlooks for the future. Investors looking for promising investment opportunities may want to consider Monday.com, CyberArk Software, and T-Mobile US based on the insights provided by these analysts.