12 Best Growth Stocks to Invest In According to Analysts

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7. Manhattan Associates Inc. (NASDAQ:MANH)

Number of Hedge Fund Holders: 34

Upside Potential as of February 19: 46.63%

Manhattan Associates Inc. (NASDAQ:MANH) provides software solutions that empower businesses to optimize supply chain, inventory, and omni-channel operations. It offers products like warehouse and transportation management systems, alongside omnichannel and inventory optimization tools. It serves diverse industries worldwide, enabling them to navigate the complexities of modern commerce.

In Q4 2024, the company’s cloud subscription revenue surged by 26% year-over-year. It grew by 32% for the full year 2024. The company anticipates maintaining a 20%+ cloud subscription revenue growth rate over the next several years, with projections indicating that cloud revenue will likely outpace services revenue by the end of 2026. This growth comes from the acquisition of new customers, the transition of existing on-premise customers to cloud-based solutions, and the successful cross-selling of its expanding product portfolio. With over 80% of on-premise customers yet to migrate, there’s an opportunity for continued cloud growth. Furthermore, a pipeline of potential new customers, representing ~35% of demand, supports this upward trajectory.

The company is heavily invested in innovation, allocating $138 million to R&D in 2024. This investment is driving the development of advanced cloud-native solutions, such as Manhattan Active Supply Chain Planning and enhanced PoS systems, which are broadening its market reach. For 2025, Manhattan Associates Inc. (NASDAQ:MANH) is forecasting cloud revenue to be between $405 and $410 million.

Baird Mid Cap Growth Equity Strategy stated the following regarding Manhattan Associates Inc. (NASDAQ:MANH) in its Q2 2024 investor letter:

“We made several adjustments to our technology sector mix. We also added Manhattan Associates, Inc. (NASDAQ:MANH) and Vertiv Holdings. Manhattan Associates provides enterprise grade warehouse management software. As a market leader, we believe Manhattan will benefit from a continuation of legacy software upgrades.”

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