Investors are currently facing concerns surrounding inflation and the timing of Federal Reserve rate cuts, resulting in a volatile market. However, it’s essential to note that investors with a long-term perspective can benefit from Wall Street analysts’ stock research to make informed investment decisions and improve portfolio returns.

One such stock favored by top analysts is Monday.com (MNDY), a workplace management software maker. The company recently impressed investors with its strong performance in the first quarter, driven by high demand across all its target markets. In reaction to these results, Goldman Sachs analyst Kash Rangan reiterated a buy rating on Monday.com stock and raised the price target to $300 from $270.

Rangan believes that Monday.com is undervalued, even after the post-earnings rally. He described the company as a rare example with visibility into improving NER (net expansion rate), growing momentum in the enterprise, SMB (small and medium businesses) strength, and a healthy clip of FCF (free cash flow) margin. Rangan also highlighted Monday.com’s solid pricing power within the small- and medium-sized business space, reflecting its high value proposition.

Overall, the analyst expects the rate of revenue deceleration to slow down, with net new revenue growth likely stabilizing. Rangan is optimistic about Monday.com’s unified platform, which he believes will support a robust margin profile and enhance long-term revenue growth. In the TipRanks ranking of analysts, Rangan holds the 388th position out of more than 8,800 analysts, with a success rate of 60% and an average return of 10.7%.

Another stock recommended by analysts is big-box retailer Walmart (WMT). The company recently reported better-than-expected revenue and earnings for the first quarter of fiscal 2025, driven by robust e-commerce sales growth and strength in the third-party marketplace. In response to these results, Baird analyst Peter Benedict maintained a buy rating on Walmart stock and increased the price target to $70 from $65.

Benedict believes that Walmart’s focus on value and convenience continues to attract customers across all cohorts, with a significant market share gain among higher-income households. He noted that Walmart’s alternative revenue streams, including advertising, marketplace, fulfillment services, data monetization, and Walmart+, carry higher margins and complement its core retail business.

The analyst estimates that these alternative revenue streams generate around $7 billion in revenue and expects them to be vital margin drivers that can support investments in Walmart’s growth areas. In the TipRanks analyst ranking, Benedict holds the 68th position out of more than 8,800 analysts, with a success rate of 69% and an average return of 15.1%.

CyberArk (CYBR), a cybersecurity company, also stands out as a top stock pick recommended by analysts. The company recently announced an agreement to acquire machine identity management provider Venafi for $1.54 billion from private equity firm Thoma Bravo. CyberArk anticipates that this acquisition will enhance its total addressable market by about $10 billion to nearly $60 billion.

Following this announcement, TD Cowen analyst Shaul Eyal reiterated a buy rating on CyberArk stock with a price target of $300. Eyal believes that CyberArk’s management team has a strong track record of effectively integrating previous acquisitions and delivering significant returns. Although Venafi represents CyberArk’s largest acquisition to date, Eyal is confident in the management’s ability to maintain its successful M&A strategy.

The analyst highlighted that the deal is expected to immediately enhance CyberArk’s gross, operating, and cash flow margins. Additionally, CyberArk plans to leverage its global go-to-market network to distribute Venafi’s solutions and capitalize on revenue synergy opportunities through cross-sell and up-sell strategies. Eyal currently holds the 15th position among more than 8,800 analysts tracked by TipRanks, with a success rate of 68% and an average return of 26.7%.

Investors looking for stock recommendations can leverage the insights and analysis provided by Wall Street analysts to make informed investment decisions and potentially enhance their portfolio returns. It’s important to consider the long-term prospects of companies and the market trends while evaluating stock picks recommended by financial experts.

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