We recently published the following list: Jim Cramer’s 10 stock recommendations for June. Monday.com Ltd (NASDAQ:MNDY) ranks seventh on the list, so it’s worth taking a closer look.
Jim Cramer spoke on his recent show about the impact of inflation on the American consumer and how it affects the rich and the have-nots. Cramer said that everyone feels the “pain of inflation,” but the have-nots feel it “much more than the rich.” Cramer said the difference between these two consumer groups is very important for investment portfolios. He complained that many retailers don’t know the consumer, and therefore have a completely different interpretation of the current economic situation and how it affects them. Cramer criticized people who use “consumer” as a blanket term without paying attention to the differences between consumers.
Cramer said some retailers are feeling the effects of inflation directly as consumers cut back on spending. The CNBC host said Americans are being forced to make tough choices because of rising prices, but we don’t usually talk about it.
Jim Cramer said many strategists are calling for multiple rate cuts because “they want stocks to rise.”
“I would love to see stocks rise too, but if there are multiple rate cuts and inflation rises again, it’s the have-nots who will suffer.”
Jim Cramer said that while many people won’t be happy with the strong jobs numbers (because it reduces the chances of a rate cut), they should keep in mind the tough situation the Federal Reserve finds itself in.
“Jay Powell isn’t worried about those of us with big assets. He’s worried about the tens of millions of people who have almost nothing in the bank.”
For this article, we watched some of Jim Cramer’s latest shows recently and picked 10 stocks that he is bullish on and recommends investors buy or hold. For each stock, we included the number of hedge fund investors. Why are we interested in stocks that hedge funds are flocking to? The reason is simple: our research shows that you can beat the market by mimicking the top holdings of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points. (Click here for details).
Monday.com Ltd (NASDAQ:MNDY)
Number of hedge fund investors: 46
Despite his recent bearish outlook for enterprise software stocks, Jim Cramer agreed with fellow speakers on his latest show that he was bullish on Monday.com Ltd (NASDAQ:MNDY).
“MNDY is a really good company. … Enterprise software is having a bit of a resurgence right now with Salesforce traction. But Monday.com is a really good company. You made a good call.”
Shares of Monday.com Ltd (NASDAQ:MNDY) soared last month after the company reported strong first quarter results and raised guidance. Revenues for the March quarter rose 33.6% year over year to $216.91 million, beating expectations by $6.29 million. One of the biggest positives from the quarter was a stable net retention rate of 110%. Monday.com Ltd (NASDAQ:MNDY) cited new product launches, growing market penetration and higher prices as some of the factors behind the stable net retention rate. Operating margins for the period were 10%, up from 0% a year ago and above guidance of 5%.
Adjusted earnings for 2024 are now expected to be in the range of $77 million to $83 million, up from $58 million to $64 million previously.
Monday.com Ltd (NASDAQ:MNDY) valuation is becoming attractive following the company’s increased revenue growth guidance. Monday.com Ltd (NASDAQ:MNDY) revenue growth is double that of competitors such as Atlassian (TEAM), Asana (ASAN), and Smartsheet (SMAR). Wall Street expects the company’s revenue to grow 27% this year.
In its Q4 2023 investor letter, ClearBridge Mid Cap Growth Strategy said the following about Monday.com Ltd. (NASDAQ:MNDY):
“we, Monday.com, Inc. (NASDAQ:MNDY) is a company in the IT sector that provides software-efficient work management tools through a cloud-based operating system. After a long period of revenue slowdown in the software industry, we believe the situation is stabilizing. monday.com is well positioned to take advantage of the industry’s re-acceleration as it expands from a single product to a platform offering.”
Overall, Monday.com Ltd (NASDAQ:MNDY) ranks #7 on Insider Monkey’s Jim Cramer’s list of 10 stocks recommended for June. Jim Cramer’s 10 stock recommendations for June To see other stocks in the list, click here.While we acknowledge the potential of Monday.com Ltd (NASDAQ:MNDY), we believe AI stocks have a better chance of delivering higher returns in a shorter time frame.If you are looking for AI stocks that are more promising than Monday.com Ltd (NASDAQ:MNDY) and trading at less than 5x stock price, check out our report. Cheapest AI Stocks.
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Disclosures: None. This article was originally published on Insider Monkey.