Investors are currently facing concerns over inflation and the uncertainty surrounding Federal Reserve rate cuts, resulting in turbulent markets. However, amidst this volatility, long-term investors can benefit from the stock research provided by Wall Street analysts. One of the top picks by analysts is workplace management software maker Monday.com (MNDY). The company recently reported impressive first-quarter results, driven by strong demand for its products across various end markets.
Goldman Sachs analyst Kash Rangan reiterated a buy rating on Monday.com stock and raised the price target to $300 from $270 following the quarterly report. Despite the stock's post-earnings rally, Rangan believes that the stock is undervalued. He highlighted Monday.com as “a rare example of a company with visibility into improving NER (net expansion rate), growing momentum in the enterprise, SMB (small and medium businesses) strength, and healthy clip of FCF (free cash flow) margin.” Rangan also noted the company's solid pricing power within the small- and medium-sized business space, reflecting its high-value proposition. Overall, Rangan expects the rate of revenue deceleration to slow down, with net new revenue growth likely to stabilize.
Rangan currently ranks No. 388 among more than 8,800 analysts tracked by TipRanks, with a success rate of 60% and an average return of 10.7%. This indicates a level of credibility in his recommendations, making Monday.com a stock worth considering for long-term investors.
Walmart (WMT)
Another stock favored by Wall Street analysts is big-box retailer Walmart (WMT). The company recently surpassed revenue and earnings expectations for the first quarter of fiscal 2025. Walmart's strong performance was driven by robust e-commerce sales growth, fueled by store-fulfilled pickup and delivery, as well as third-party marketplace strength.
Baird analyst Peter Benedict reaffirmed a buy rating on Walmart stock and increased the price target to $70 from $65 in response to the positive earnings report. Benedict emphasized Walmart's focus on value and convenience, which continues to attract all customer cohorts, with a significant portion of market share gains coming from higher-income households with an annual income of over $100,000. The analyst sees Walmart's alternative revenue streams, such as advertising, marketplace, fulfillment services, data monetization, and Walmart+, as key margin drivers that complement its core retail business.
Benedict currently holds the No. 68 position among more than 8,800 analysts tracked by TipRanks, with a success rate of 69% and an average return of 15.1%. This indicates a strong track record of profitable recommendations, making Walmart a compelling stock pick for investors looking for stable long-term growth potential.
CyberArk (CYBR)
The third top stock recommended by Wall Street analysts is cybersecurity company CyberArk (CYBR). The company recently announced its agreement to acquire machine identity management provider Venafi for $1.54 billion from private equity firm Thoma Bravo. This strategic acquisition is expected to expand CyberArk's total addressable market by approximately $10 billion to nearly $60 billion.
TD Cowen analyst Shaul Eyal reiterated a buy rating on CyberArk stock with a price target of $300 post the acquisition announcement. Eyal highlighted CyberArk's successful track record of integrating previous acquisitions quickly and efficiently, delivering significant returns in recent years. Despite Venafi being CyberArk's largest acquisition to date, Eyal expressed confidence in the company's management team to maintain their strong M&A track record.
Eyal, ranked 15th among more than 8,800 analysts tracked by TipRanks, has a success rate of 68% and an average return of 26.7%. This indicates a high level of accuracy in his recommendations, making CyberArk a stock worth considering for investors seeking exposure to the cybersecurity sector and potential revenue synergies.
These three stocks represent compelling investment opportunities based on the analysis and recommendations of top Wall Street analysts. Long-term investors may consider adding Monday.com, Walmart, and CyberArk to their portfolios to benefit from potential growth and stable returns in the current market environment.