10 Best Performing Software Stocks to Buy According to Analysts

5. Monday.com Ltd. (NASDAQ:MNDY)

YTD returns: 26%

Potential Upside: 28%

Number of Hedge Fund Holders: 68

Monday.com Ltd. (NASDAQ:MNDY), an Israel-based company, offers a Work Operating System (Work OS) that allows organizations to build customized work management tools, automate workflows, and enhance collaboration. Its flexible, no-code/low-code platform supports project management, customer relationship management (CRM), and operational planning.

In 2025, Monday.com Ltd. (NASDAQ:MNDY) has seen its share price climb over 26%, driven by its expansion into AI-powered automation and enterprise solutions, positioning it as a key player in modern work management. A significant portion of these gains came from a 26% surge following strong Q4 2024 earnings. The company reported revenue of $268 million, up 32% year-over-year, and an adjusted EPS of $1.08, both exceeding analyst expectations.

Management remains optimistic about future growth, emphasizing the impact of AI on enhancing customer experience. Sharing his positive outlook on the company, CFO Eliran Glazer stated:

“Our 2024 results reflect our ongoing commitment to driving highly efficient growth through nearly any macroeconomic environment, with record GAAP and non-GAAP operating margins and free cash flow and surpassing $1 billion in annual recurring revenue (ARR). We are entering 2025 from a position of strength, and we remain as confident as ever in the exciting growth opportunities we see ahead.”