10 Stocks on Jim Cramer’s Radar

1. monday.com Ltd. (NASDAQ:MNDY)

Cramer said that stocks like monday.com Ltd. (NASDAQ:MNDY) are now blessed. He said:

“Now, this is an Israeli software company that streamlines workflows and provides visibility to what people are working on at your business. There’s a ton of companies just like it. It’s a quintessential enterprise software play, which is why I’m starting the game plan with it. Because this group, this enterprise software, they were being sold relentlessly. Somehow, sellers just walked away from these companies, which is how Salesforce or ServiceNow were able to soar during this period. I think these enterprise software stocks have much more to go because there’s just not a lot of sellers here. They are as blessed now as they were cursed not that long ago.”

monday.com (NASDAQ:MNDY) develops cloud-based software applications, including Work OS, a visual work operating system, and tools for project management, sales tracking, agile development, digital collaboration, and data collection through forms and surveys. On November 11, it reported its earnings for the third quarter, revealing a 33% year-over-year increase in revenue, which totaled $251.0 million.

Despite this growth, the company posted a GAAP basic and diluted net loss per share of $0.24, a shift from the $0.15 net income per share reported during the same period in 2023. During the quarter, the company made a significant achievement in its financial trajectory, surpassing $1 billion in annual recurring revenue (ARR).

This milestone is particularly noteworthy as it comes just ten years after the company’s founding and eight years after reaching $1 million in ARR. As of the end of the quarter, monday.com (NASDAQ:MNDY) reported $82.4 million in free cash flow, an increase from the $64.9 million recorded during the third quarter of 2023.

While we acknowledge the potential of monday.com Ltd. (NASDAQ:MNDY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MNDY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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