The first stock pick by the Street’s top analysts is project management software provider Monday.com (MNDY). With impressive second-quarter results and a raised full-year outlook, the company has caught the attention of investors. In particular, the increase in paid customers with more than $100,000 in annual recurring revenue (ARR) by 49% to 1,009 has been a significant indicator of the company’s growth potential. TD Cowen analyst Derrick Wood has shown confidence in MNDY by raising the price target to $300 from $275 and reiterating a buy rating, calling it a top pick. Wood emphasized the solid demand for Monday.com’s products among high-paying customers and highlighted the company’s recent deal with a multinational healthcare company as a milestone. With the expectation of the net dollar retention rate remaining stable at about 110% through fiscal 2024, Monday.com is poised for growth in the coming years.
CyberArk Software (CYBR)
Another favorite tech company among top analysts is CyberArk Software (CYBR). The identity security company has seen 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 increased the price target to $315 from $295 after the strong Q2 performance. Kothari believes that CYBR’s workforce identity and machine identity solutions are emerging as major growth catalysts and justifies the premium valuation compared to peers. Despite macroeconomic challenges, the analyst is optimistic about the demand for CyberArk’s identity security solutions and highlighted the pending acquisition of Vanafi as a positive move for the company’s position in the market. With robust profitability and free cash flow, CyberArk Software is well-positioned to leverage clients’ identity security needs and drive future growth.
T-Mobile US (TMUS)
The third stock pick for potential growth by top analysts is wireless network provider T-Mobile US (TMUS). With better-than-expected second-quarter results and raised full-year guidance for postpaid net customer additions and cash flows, the company has shown resilience in a competitive industry. Tigress Financial Partners analyst Ivan Feinseth reiterated a buy rating on TMUS stock and increased the price target to $235 from $205. T-Mobile US stands out in terms of customer additions and services revenue growth, driven by its ultra capacity 5G high-speed network. The vast footprint of the company’s 5G network covering 98% of Americans and the extensive reach of its ultra capacity 5G network are key factors contributing to subscriber growth and revenue. Additionally, opportunities in fixed wireless access (FWA) and shareholder returns further boost the potential growth of T-Mobile US in the coming years.
Overall, these three stock picks represent companies with strong fundamentals, promising growth prospects, and positive sentiment from top Wall Street analysts. It is essential for investors to conduct their own research and due diligence before making any investment decisions, as the market is always subject to volatility and uncertainties.