Investors are facing a challenging market environment marked by concerns over inflation and Federal Reserve rate cuts. However, despite the near-term uncertainties, long-term investors can take advantage of expert stock research to make informed investment decisions that can enhance their portfolio returns. One such stock that has garnered favor among the Street’s top analysts is workplace management software maker Monday.com (MNDY).
Goldman Sachs analyst Kash Rangan recently reiterated a buy rating on Monday.com stock and raised the price target to $300 from $270 following the company’s impressive first-quarter results. Rangan highlighted the strong demand for Monday.com products across all end markets, leading to upbeat earnings. He described Monday.com as a company with a clear visibility into improving metrics, such as net expansion rate, enterprise momentum, and healthy cash flow margins.
The analyst emphasized Monday.com’s solid pricing power in the small and medium-sized business space, indicating a high-value proposition that sets the company apart. Rangan anticipates a moderation in revenue deceleration and expects new revenue growth to stabilize, driven by the company’s unified platform that supports a durable margin profile and long-term revenue growth. Despite the stock’s post-earnings rally, Rangan believes that Monday.com remains undervalued in the market.
Walmart (WMT): Capturing Market Share through Value and Convenience
Another stock favored by Wall Street analysts is big-box retailer Walmart (WMT), which delivered better-than-expected revenue and earnings in the first quarter of fiscal 2025. Baird analyst Peter Benedict reaffirmed a buy rating on Walmart stock and increased the price target to $70 from $65 in response to the company’s robust e-commerce sales growth and marketplace dominance.
Benedict pointed out Walmart’s focus on value and convenience as key drivers of its market share gains, particularly among higher-income households. The analyst highlighted Walmart’s alternative revenue streams, such as advertising, marketplace services, and data monetization, which carry higher margins and complement its core retail business. Benedict expects these revenue streams to be essential margin drivers that can fund investments in Walmart’s growth initiatives.
The analyst estimates that Walmart’s alternative revenue streams generate approximately $7 billion in revenue and sees them as crucial components of the company’s strategy to reshape its profit and loss statement through higher-margin opportunities. By scaling these accretive revenue streams and investing in automation initiatives, Walmart aims to drive long-term profitability and sustainable growth.
CyberArk (CYBR): Expanding Market Potential through Strategic Acquisitions
CyberArk (CYBR), a cybersecurity company, recently announced a significant deal to acquire machine identity management provider Venafi for $1.54 billion. This strategic move is expected to expand CyberArk’s total addressable market by approximately $10 billion, positioning the company for stronger growth opportunities in the cybersecurity space.
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 history of integrating previous acquisitions, such as Idaptive, Conjur, and Viewfinity, which have delivered significant returns for the company. Despite Venafi being CyberArk’s largest acquisition to date, Eyal expressed confidence in the management’s ability to effectively integrate the new entity.
Eyal emphasized the immediate accretive impact of the Venafi acquisition on CyberArk’s gross, operating, and cash flow margins. He also noted the significant revenue synergy opportunities that exist through cross-selling, up-selling, and geographic expansion. With a strong global go-to-market network, CyberArk is well-positioned to leverage its customer base for distributing Venafi’s solutions and driving incremental revenue growth.
Investors seeking to maximize their portfolio returns can benefit from leveraging the insights of top Wall Street analysts when making investment decisions. By analyzing expert recommendations and research, investors can identify promising stock picks such as Monday.com, Walmart, and CyberArk that offer growth potential, value, and strategic positioning for long-term success in the market.