We recently published a list titled Jim Cramer is Recommending These 10 Stocks in June. Since Monday.com Ltd (NASDAQ:MNDY) ranks 7th in the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the effect of inflation on US consumers and discussed how it’s impacting the Haves and the Have Nots. Cramer said while everyone is feeling the “pinch of inflation,” the Have Nots are feeling a “heck of a lot more” than the Haves. Cramer said that the difference between these two classes of consumers is very important for investment portfolios. He complained that many retailers don’t even know their consumers and that’s why they have a totally different reading of the current economic situation and its effects on consumers. Cramer criticized those who aren’t careful about the differences between consumers and use “the consumer” as a blanket term.
Cramer talked about several retail companies and how they are directly feeling the effects of inflation as consumers cut back on spending. The CNBC host said that Americans are making tough choices because of rising prices but we usually don’t talk about it.
Jim Cramer said that many strategists demand several rate cuts because “they want stocks higher.”
“I want higher stock prices too but if we get multiple rate cuts and inflation comes roaring back, it’s the Have Nots that will get hurt.”
Jim Cramer said that while many people won’t be happy to see a strong jobs report (because that decreases the chances of rate cuts), they should keep in mind the tough situation the Federal Reserve is in.
“Jay Powell isn’t worried about those of us with big portfolios. He’s worried about the tens of millions of people with almost nothing in the bank.”
For this article we watched several latest programs of Jim Cramer aired recently and picked 10 stocks he’s bullish about and recommending investors to buy or hold. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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.”
Overall, Monday.com Ltd (NASDAQ:MNDY) ranks 7th on Insider Monkey’s list of Jim Cramer is Recommending These 10 Stocks in June. You can visit Jim Cramer is Recommending These 10 Stocks in June to see other stocks in the list. While we acknowledge the potential of Monday.com Ltd (NASDAQ:MNDY), 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 Monday.com Ltd (NASDAQ:MNDY) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.