As investors navigate through rocky markets filled with uncertainties about stubborn inflation and Federal Reserve rate cuts, it is essential to consider long-term investment strategies. One way to make informed decisions is by leveraging the stock research from Wall Street analysts. This week, one of the top stock picks favored by analysts is workplace management software maker Monday.com (MNDY). The company recently reported robust first-quarter results that impressed investors, showcasing strong demand for its products across various end markets. In response to this performance, Goldman Sachs analyst Kash Rangan reiterated a buy rating on Monday.com stock and raised the price target to $300 from $270. Despite the post-earnings rally, Rangan believes that the stock is still undervalued. He labeled Monday.com as “a rare example of a company with visibility into improving NER, growing momentum in the enterprise, SMB strength, and a healthy clip of FCF margin.” Rangan’s bullish outlook stems from the company’s solid pricing power in the small- and medium-sized business sector, reflecting its high-value proposition. Overall, the analyst anticipates a moderation in the rate of revenue deceleration, with net new revenue growth stabilizing. Rangan’s ranking at No. 388 among over 8,800 analysts tracked by TipRanks speaks to his credibility, with successful ratings achieving an average return of 10.7%.
Walmart (WMT)
Another stock pick endorsed by top Wall Street analysts is big-box retailer Walmart (WMT). The company recently announced better-than-expected revenue and earnings for the first quarter of fiscal 2025, driven by robust growth in e-commerce sales. Baird analyst Peter Benedict reaffirmed a buy rating on Walmart stock and raised the price target to $70 from $65 following this performance. Benedict recognizes Walmart’s focus on value and convenience as key drivers attracting various customer groups, with significant market share gains among higher-income households. The increased price target reflects Walmart’s efforts in reshaping its profit and loss structure through higher margin alternative revenue streams and automation initiatives. Walmart’s alternative revenue streams, such as advertising, marketplace, fulfillment services, data monetization, and Walmart+, are estimated to generate approximately $7 billion in revenue, driving higher margins and complementing the core retail business. Benedict ranks at No. 68 among the vast pool of analysts tracked by TipRanks, with profitable ratings delivering an average return of 15.1%.
CyberArk (CYBR)
The third stock pick highlighted by Wall Street analysts is the cybersecurity company CyberArk (CYBR). With the recent announcement of its agreement to acquire Venafi for $1.54 billion, CyberArk anticipates expanding its total addressable market to nearly $60 billion. TD Cowen analyst Shaul Eyal reiterated a buy rating on CyberArk stock with a price target of $300 post the deal’s revelation. Eyal remains optimistic about CyberArk’s ability to effectively integrate Venafi, citing the successful integration of previous acquisitions like Idaptive, Conjur, and Viewfinity. While Venafi represents CyberArk’s most substantial acquisition to date, Eyal is confident in the management team’s M&A track record. Moreover, the analyst expects the deal to be immediately accretive to CyberArk’s gross, operating, and cash flow margins. CyberArk is well-positioned to leverage significant revenue synergy opportunities through cross-selling, up-selling, and expanding geographically. Eyal emphasizes that leveraging the existing customer base of 8.8K customers presents early upsell and cross-sell possibilities. Eyal holds a prominent position at 15th place among the vast analyst community on TipRanks, with successful ratings offering an average return of 26.7%.
While market uncertainties and macro challenges may impact near-term sentiment, utilizing the stock research insights from top Wall Street analysts can guide investors towards informed decision-making and improved portfolio returns. Monday.com, Walmart, and CyberArk stand out as compelling stock picks backed by analysts with a proven track record of success in the financial market. By carefully considering such expert analysis, investors can navigate through turbulent market conditions and position themselves for long-term growth and success.