Jim Cramer is Recommending These 10 Stocks in June

7. Monday.com Ltd (NASDAQ:MNDY)

Number of Hedge Fund Investors: 46

Despite his recent bearish calls on enterprise software stocks, Jim Cramer in a latest program agreed with a caller who is bullish on Monday.com Ltd (NASDAQ:MNDY).

“MNDY is really good. … Enterprise software has a bit of resurgence today, led by Salesforce. But Monday.com is a very good company. You had a good call there.”

Last month Monday.com Ltd (NASDAQ:MNDY) shares jumped after the company posted strong Q1 results and increased its guidance. Revenue in the March quarter jumped 33.6% year-over-year to $216.91 million, surpassing estimates by $6.29 million. One of the biggest green shoots in the quarter was a stabilized net retention rate of 110%. Monday.com Ltd (NASDAQ:MNDY) said new product launches, larger penetration in the market and price increases were some causes of a stabilized NRR. Operating margin in the period was 10%, up from 0% a year ago and ahead of the 5% guidance.

Adjusted profit in 2024 is expected to come in the range of $77 million and $83 million, up from a prior view of $58 million to $64 million.

Monday.com Ltd (NASDAQ:MNDY) valuation has become attractive following the company’s increased revenue growth guidance. Monday.com Ltd’s (NASDAQ:MNDY) revenue growth is double its competitors like Atlassian (TEAM),  Asana (ASAN) and Smartsheet (SMAR). Wall Street expects the company’s revenue to grow 27% this year.

ClearBridge Mid Cap Growth Strategy stated the following regarding Monday.com Ltd. (NASDAQ:MNDY) in its fourth quarter 2023 investor letter:

“We established a position in Monday.com Ltd. (NASDAQ:MNDY) in the IT sector, which provides software efficiency work management tools through its cloud-based operating system. After an extended stretch of revenue deceleration in the software industry, we believe conditions are stabilizing, and monday.com is exceptionally well-positioned to capitalize on an industry re-acceleration, especially as it expands from a single product into a platform offering.”