Leading analysts on Wall Street are optimistic about the future prospects of these three stocks.
Editor Thenews24.net
3 min read
In an illustration taken on February 22, 2024, in Krakow, Poland, the T-Mobile logo is visible on both a laptop and a smartphone. The July consumer price index showed a decrease in inflation, and July retail sales alleviated concerns about an economic downturn, raising hopes for a potential interest rate cut at the Federal Reserve’s September meeting. With market sentiment improving, investors seeking promising stocks can turn to top Wall Street analysts for recommendations. These analysts conduct thorough evaluations of a company’s financial health, competitive environment, and future prospects to identify stocks with strong long-term growth potential. Here are three stocks favored by leading analysts, as reported by TipRanks, a platform that ranks analysts based on their historical performance.
Monday.com
The first stock to consider is Monday.com (MNDY), a project management software provider. The company impressed investors with its second-quarter performance and increased its full-year outlook due to strong demand from large clients. The number of customers paying over $100,000 annually grew by 49% to 1,009. TD Cowen analyst Derrick Wood raised his price target for MNDY to $300 from $275 and maintained a buy rating, citing strong demand among high-paying customers and a significant deal with a multinational healthcare company. Wood believes Monday.com is successfully moving upmarket and expects more large deals in the future. He also noted that the company anticipates its net dollar retention rate to stay around 110% through fiscal 2024, with potential for slight improvement by year-end. Wood ranks 197th among over 8,900 analysts tracked by TipRanks, with a 60% success rate and an average return of 13.3%.
CyberArk Software
Another top pick is CyberArk Software (CYBR), an identity security company. The company reported strong second-quarter results and raised its full-year outlook, driven by steady demand for its platform. Baird analyst Shrenik Kothari reaffirmed a buy rating on CYBR and increased his price target to $315 from $295. Kothari highlighted the company’s strong net new annual recurring revenue, new business acquisitions, and expansion among existing customers, driven by its unified identity security platform. He noted that CyberArk’s workforce and machine identity solutions are key growth drivers and justified the stock’s premium valuation due to its market leadership and shift to recurring revenues. Despite macroeconomic challenges, Kothari is optimistic about the demand for CyberArk’s solutions and the company’s profitability and free cash flow. He also mentioned the pending acquisition of Vanafi, which is expected to strengthen CyberArk’s position in the machine identity security market. Kothari ranks 196th among over 8,900 analysts tracked by TipRanks, with a 72% success rate and an average return of 22.7%.
T-Mobile US, Inc.
The third stock to watch is T-Mobile US (TMUS), a wireless network provider. The company recently reported better-than-expected second-quarter results and raised its full-year guidance for postpaid net customer additions and cash flows. On August 12, Tigress Financial Partners analyst Ivan Feinseth reiterated a buy rating on TMUS and increased his price target to $235 from $205. Feinseth noted that T-Mobile continues to lead the industry in customer additions and service revenue growth, supported by its superior ultra-capacity 5G network. He highlighted that T-Mobile’s extensive 5G network covers 98% of Americans, with its ultra-capacity 5G network reaching over 330 million people. Feinseth expects the company to benefit from opportunities in fixed wireless access. Additionally, he praised T-Mobile’s shareholder returns, noting that the company returned $3 billion to shareholders in Q2 2024 through dividends and share repurchases. Feinseth ranks 239th among over 8,900 analysts tracked by TipRanks, with a 60% success rate and an average return of 11.9%.