It’s no exaggeration to say that technology has advanced recently. The spread of artificial intelligence (AI) has sparked investors, tech stocks It has raised about $4 trillion this year. The Nasdaq index, which is traditionally tech-heavy, rose 2.5% last week and is up almost 25% so far in 2023, marking a reversal from the 2022 bear market. By comparison, the S&P 500 is only up 9% for him, and the Dow Jones Industrial Average is down slightly.
So far, the biggest winner of the technology rally is Nvidia. The company is seen as one of the big beneficiaries of the rise of AI, and is profiting accordingly. Shares are up more than 165% year-to-date, putting the chip giant on track to become the first trillion-dollar chip company.
But despite its overwhelming dominance, Nvidia isn’t the only tech game in town. Investors can find plenty of other stocks poised to thrive on this technological recovery. I used TipRank smart score Find two such stocks, i.e. stocks with a “perfect 10” rating from the data sorting tool. A smart score of perfect 10 indicates that the stock performs well on a set of eight factors known to correlate with future outperformance. These Perfect 10 tech companies are truly standout stocks in the field of stock appreciation. Now let’s check the details.
monday.com (Mundi)
First, monday.com is a software company that provides enterprise customers with cloud-based products for business management, office system optimization, CRM, marketing, sales operations, and project management. Offered through a subscription model, the company’s products connect people and systems to streamline office workflows and enable more efficient processes. Monday’s customer base includes some well-known companies such as Uber, Coca-Cola, and Canva.
Looking at this number, you can see how fast Monday grew. The company was founded in his 2012 and held his IPO in June 2021. Today, the company employs more than 1,500 people, has over 186,000 customers using its products, and can be said to have approximately 1,700 customers each generating more than $50,000 in recurring revenue annually. The company has a market capitalization of $7.98 billion.
In a significant move that promises to grow monday.com’s customer base, the company announced a new partnership with Microsoft on May 24th. This joint effort will bring his CRM sales tools from monday.com to Microsoft Teams.
Additionally, in April of this year, monday.com announced a new “working operating system” that allows users to build new process tools that incorporate generative AI from the ground up. New tools include compose and rephrase emails, auto-generate tasks, summarize tasks, and more.
monday.com has built a significant business on its own, with total revenues of approximately $519 million last year. Since its IPO, monday.com has continued to grow its revenue. In its last reported quarter, the first quarter of 2023, sales were $162.26 million, up 49.6% year-over-year and more than $7 million above expectations. Ultimately, monday.com’s non-GAAP EPS was 15 cents, 43 cents better than expected.
Even better for investors was the company’s second-quarter guidance. Monday.com expects total revenue in the second quarter of this year to range from $168 million to $170 million, well above consensus expectations of $165.3 million. increase.
when you turn your eyes smart score, monday.com scores highly on the sentiment scale. Blogger sentiment is 66% positive for their peers, but 91% positive for MNDY. The wisdom of the crowd is “extremely positive,” with retail investors increasing their MNDY holdings by 7.5% over the past 30 days. And a hedge tracked by TipRanks, he bought up more than 90,000 shares last quarter. Finally, the company is showing solid positive momentum and a positive simple moving average. Add all of this up to a perfect 10.
The stock caught the eye of Goldman Sachs analyst Kash Langan, who likes the company’s growth prospects. The 5 Star Analyst wrote: “With total churn rates remaining stable and macro pressures focused on slowing expansion, we believe Monday.com is well positioned for a healthy reacceleration of the economic recovery. New product rollouts and enhancements such as MondayDB, CRM Sales, and Generative AI will further strengthen Monday’s position as a viable, strategic enterprise-grade software company. We see it at $2 billion, comparable to the size of Atlassian’s cloud business, which is an attractive risk/reward for MNDY given that it accounts for the majority of the market value of around $37 billion. I understand this.”
Langan went on to give MNDY a Buy rating, with a price target of $240, suggesting a 43% gain next year. (To see Langan’s achievements, click here)
Overall, monday.com’s ‘strong buy’ consensus rating is supported by 13 recent analyst reviews, including 11 buys and 2 holds. The stock sells at $167.20, with an average price target of $188.92, suggesting a 13% gain over the next year. (look MNDY Stock Prediction)
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Allegro Microsystems (ALGM)
Next on our Perfect 10 list is semiconductor chip company Allegro MicroSystems. Allegro is a fabless chip company. This means we design and sell our chips ourselves, and outsource manufacturing to third-party chip foundries. Allegro’s chips are used in a variety of applications including the automotive and industrial tool sector, data centers and green energy products. In these applications, Allegro products act as regulators, sensors and motor drivers, are popular in the electric vehicle sector and are frequently used in AV control systems.
Examining some numbers, the Allegro becomes even more impressive. The average car usually has nine of the company’s devices in it, and Allegro holds more than 650 active US patents protecting its intellectual property. Overall, Allegro has shipped over 11 billion of his sensors in his lifetime.
Allegro’s revenues have increased continuously over the past year and a half, as was the case in the company’s final quarterly report for the fourth quarter (March quarter) of fiscal 2023. Allegro reported that total revenue increased 34% year-over-year, from $202.9 million to $269.44 million, surpassing expectations by $4.43 million. For the full year of 2023, the company posted record revenue of $974 million, up 26% year over year.
Drilling down to bottom line earnings, Allegro reported fourth quarter non-GAAP EPS of 37 cents. This was better than the 21 cents reported in the same period last year, and he beat expectations by 1 cent.
Looking ahead, Allegro provided first quarter earnings guidance in the range of $270 million to $280 million, well above the consensus guidance of $257 million.
and smart score Up front, Allegro has a return on equity of 22% over the last 12 months, demonstrating positive technical factors. News sentiment is 100% positive and blogger sentiment is 80% positive. Based on a 14.6% increase in holdings over the last 30 days, the wisdom of the crowd is very positive. Hedging firms are also bullish, adding 77,100 shares here last quarter.
Wells Fargo analyst Gary Mobley believes there are several reasons to support the stock. He wrote: “ALGM’s significant revenue growth relative to other chip divisions is driven by the following factors: 1) the company’s relatively high exposure to automotive (about 70%) and this Market resilience 2) Gain sharing in power ICs (such as motor control and PMIC) 3) Gain sharing in industry (both power ICs and magnetic sensors) 4) UMC, TSMC, Improved manufacturing availability with fab partners such as Polar.”
“In our view, ALGM is one of the purest ways to invest in automotive themes,” the five-star analyst continued. “Furthermore, we believe ALGM offers the right trade-off between cyclical growth, long-term growth (EV/ADAS, etc.), and valuation.”
In line with those comments, Mobley rated the stock overweight and set a price target of $52, indicating he believes it has 31% upside over the year. there is (To see Mobley achievements, click here. )
Analysts’ unanimous view on Allegro shows that the bulls are running here. Based on 6 positive reviews, the stock received a unanimous ‘strong buy’. The stock has an average price target of $51.33 and a current trading price of $39.73, up 29% over the year. (look ALGM stock price forecast)
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Disclaimer: The opinions expressed in this article are those of the featured analyst only. Content is used for informational purposes only. It is very important to do your own analysis before making any investment.