Jim Cramer’s Top 10 Stocks to Track for Potential Growth

6. MongoDB Inc.(NASDAQ:MDB)

Number of Hedge Fund Investors: 54

Jim Cramer believes MongoDB, Inc. (NASDAQ:MDB) is an enterprise software company delivering excellent results, but it isn’t receiving the same level of recognition as competitors like Salesforce.com (NYSE:CRM). He notes that investors generally seem to shy away from enterprise software companies, with the exception of Salesforce.com (NYSE:CRM). However, Cramer feels that MongoDB, Inc. (NASDAQ:MDB) is currently at a good price, suggesting it may be undervalued despite its strong performance. Cramer sees potential in MongoDB, Inc. (NASDAQ:MDB) and implies it deserves more attention in the enterprise software space.

“You know, MongoDB, Inc.(NASDAQ:MDB) is an enterprise software company that put up terrific numbers and isn’t getting credit in the same way Salesforce.com, inc. (NYSE:CRM) and others are. People tend to dislike enterprise software, except for ServiceNow. I think MongoDB, Inc.(NASDAQ:MDB) is at the right price.”

MongoDB, Inc. (NASDAQ:MDB) offers a strong case for long-term growth, driven by its outstanding financial performance and strategic advancements. In Q2 2024, MongoDB, Inc. (NASDAQ:MDB) reported a 40% jump in revenue, reaching $423.8 million, with its cloud-based Atlas platform accounting for 65% of total revenue. This growth exceeded market expectations and demonstrates the growing demand for its flexible database solutions. MongoDB, Inc. (NASDAQ:MDB) also turned its operating loss from the previous year into a profit of $53.6 million, reflecting its ability to grow while controlling costs.

Analysts are optimistic about MongoDB, Inc. (NASDAQ:MDB), with KeyBanc raising its price target to $543, citing MongoDB’s dominant position in the NoSQL database market and its potential to capitalize on rising demand from cloud and AI-driven applications. MongoDB, Inc. (NASDAQ:MDB)’s educational initiatives, such as partnering with India’s Ministry of Education to train 500,000 students, further strengthen its developer community and support future growth.

ClearBridge All Cap Growth Strategy stated the following regarding MongoDB, Inc. (NASDAQ:MDB) in its first quarter 2024 investor letter:

“During the first quarter, we initiated a new position in MongoDB, Inc. (NASDAQ:MDB), in the IT sector. The company offers a leading modern database platform that handles all data types and is geared toward modern Internet applications, which constitute the bulk of new workloads. Database is one of the largest and fastest-growing software segments, and we believe it is early innings in the company’s ability to penetrate this market. MongoDB is actively expanding its potential market by adding ancillary capabilities like vector search for AI applications, streaming and real-time data analytics. The company reached non-GAAP profitability in 2022, and we see significant room for improved margins as revenue scales.”