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The Zacks Analyst Blog Highlights monday.com, Qualys, Gitlab, Fabrinet and Smartsheet
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For Immediate Release
Chicago, IL – January 3, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: monday.com (MNDY - Free Report) , Qualys (QLYS - Free Report) , Gitlab (GTLB - Free Report) , Fabrinet (FN - Free Report) and Smartsheet (SMAR - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Top-Ranked Mid-Cap Tech Stocks for Healthy Returns
Wall Street ended 2023 on a terrific note, with the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallying 14%, 24% and 43%, respectively. The Dow had a superb December, reaching multiple highs, while the S&P 500 entered 2024 very close to its all-time high and Nasdaq registered its best performance since 2023.
Nasdaq's outperformance can be attributed to robust performances from the "Magnificent Seven" — a term coined by Bank of America analyst Michael Hartnett — comprising Apple, Alphabet, Amazon, Meta Platforms, Microsoft, NVIDIA and Tesla.
Prospects for 2024 are bright, given resilient economic growth, cooling inflation, growing expectations of rapid rate cuts by the U.S. Federal Reserve, the upswing in consumer confidence and increasing chances of a soft landing. The forthcoming Presidential election is also a potential tailwind for the U.S. equities.
Why Mid-Cap Techs Are Better
Mid-cap stocks (market capital >$5 billion <$10 billion) offer better growth prospects as they combine the attractive attributes of both small and large-cap stocks. They have significant room to grow at an acceptable level of risk. These stocks are more agile in terms of adapting to macroeconomic scenarios and tend to outperform large caps during bull markets.
Top-ranked, mid-cap stocks have a high potential to enhance their profitability, productivity and market share. Meanwhile, tech stocks are expected to perform well this year thanks to the growing proliferation of AI and machine learning. Spending on AI systems is expected to accelerate in 2024 as organizations continue to leverage AI as part of their digital transformation efforts.
The advent of generative AI has further attracted investments. The technology has already proven beneficial across a variety of industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy and utilities, and video game development.
Semiconductor sales are expected to grow this year thanks to strong demand for chips that power AI and generative AI processes. The World Semiconductor Trade Statistics organization expects semiconductor sales to grow 13.1%, following an estimated 9.4% decline in 2023.
Our Picks
Here, we have picked five mid-cap tech stocks that are well-poised to outperform this year. These stocks have a favorable combination of a Growth Score of A and a Zacks Rank of #1 (Strong Buy) or #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Per the Zacks proprietary methodology, stocks with this favorable combination offer good investment opportunities.
monday.com is benefiting from an expanding clientele driven by growing cross-selling opportunities.
monday.com currently flaunts a Zacks Rank #1 and has a market cap of $8.29 billion. The Zacks Consensus Estimate for 2024 earnings has surged 61.7% over the past 60 days to $1.73 per share. MNDY shares have returned 57.3% in the past year.
Qualys is riding on strong demand for its VMDR solution. This Zacks Rank #1 company is benefiting from an expanding clientele thanks to the strong adoption of cybersecurity asset management with external attack surface management and patch management solutions.
The consensus mark for Qualys' 2024 earnings has increased 6.7% to $5.29 per share over the past 60 days. QLYS has a market cap of $7.22 billion and its shares have surged 76% in the past year.
Gitlab is benefiting from a robust product portfolio that integrates AI-powered DevSecOps features into a single application to boost productivity. It enables businesses to create more reliable and functionality-packed mission-critical software.
This Zacks Rank #2 company's platform improves engineering productivity and reduces software spend. Gitlab has a market cap of $9.8 billion.
GTLB shares have gained 43.3% in the past year. The consensus mark for fiscal 2025 earnings has jumped 126.7% over the past 60 days to 34 cents per share.
Fabrinet is benefiting from strong demand for its next-generation optical interconnect for AI applications. This is expected to drive this Zacks Rank #2 company's top-line growth this year.
Fabrinet currently has a market cap of $6.91 billion and its shares have returned 45.5% in the past year. The Zacks Consensus Estimate for its fiscal 2024 earnings has improved 2% over the past 60 days to $8.25 per share.
Smartsheet is benefiting from an expanding customer base. This Zacks Rank #2 company ended third-quarter fiscal 2024 with an annual recurring revenue (ARR) of $981 million and more than 13.9 million Smartsheet users. SMAR had 59 customers with ARR above $1 million.
Smartsheet has a market cap of $6.52 billion and its shares have returned 23% in the trailing 12-month period. The consensus mark for fiscal 2025 earnings has jumped 20.3% over the past 60 days to 89 cents per share.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights monday.com, Qualys, Gitlab, Fabrinet and Smartsheet
For Immediate Release
Chicago, IL – January 3, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: monday.com (MNDY - Free Report) , Qualys (QLYS - Free Report) , Gitlab (GTLB - Free Report) , Fabrinet (FN - Free Report) and Smartsheet (SMAR - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Top-Ranked Mid-Cap Tech Stocks for Healthy Returns
Wall Street ended 2023 on a terrific note, with the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallying 14%, 24% and 43%, respectively. The Dow had a superb December, reaching multiple highs, while the S&P 500 entered 2024 very close to its all-time high and Nasdaq registered its best performance since 2023.
Nasdaq's outperformance can be attributed to robust performances from the "Magnificent Seven" — a term coined by Bank of America analyst Michael Hartnett — comprising Apple, Alphabet, Amazon, Meta Platforms, Microsoft, NVIDIA and Tesla.
Prospects for 2024 are bright, given resilient economic growth, cooling inflation, growing expectations of rapid rate cuts by the U.S. Federal Reserve, the upswing in consumer confidence and increasing chances of a soft landing. The forthcoming Presidential election is also a potential tailwind for the U.S. equities.
Why Mid-Cap Techs Are Better
Mid-cap stocks (market capital >$5 billion <$10 billion) offer better growth prospects as they combine the attractive attributes of both small and large-cap stocks. They have significant room to grow at an acceptable level of risk. These stocks are more agile in terms of adapting to macroeconomic scenarios and tend to outperform large caps during bull markets.
Top-ranked, mid-cap stocks have a high potential to enhance their profitability, productivity and market share. Meanwhile, tech stocks are expected to perform well this year thanks to the growing proliferation of AI and machine learning. Spending on AI systems is expected to accelerate in 2024 as organizations continue to leverage AI as part of their digital transformation efforts.
The advent of generative AI has further attracted investments. The technology has already proven beneficial across a variety of industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy and utilities, and video game development.
Semiconductor sales are expected to grow this year thanks to strong demand for chips that power AI and generative AI processes. The World Semiconductor Trade Statistics organization expects semiconductor sales to grow 13.1%, following an estimated 9.4% decline in 2023.
Our Picks
Here, we have picked five mid-cap tech stocks that are well-poised to outperform this year. These stocks have a favorable combination of a Growth Score of A and a Zacks Rank of #1 (Strong Buy) or #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Per the Zacks proprietary methodology, stocks with this favorable combination offer good investment opportunities.
monday.com is benefiting from an expanding clientele driven by growing cross-selling opportunities.
monday.com currently flaunts a Zacks Rank #1 and has a market cap of $8.29 billion. The Zacks Consensus Estimate for 2024 earnings has surged 61.7% over the past 60 days to $1.73 per share. MNDY shares have returned 57.3% in the past year.
Qualys is riding on strong demand for its VMDR solution. This Zacks Rank #1 company is benefiting from an expanding clientele thanks to the strong adoption of cybersecurity asset management with external attack surface management and patch management solutions.
The consensus mark for Qualys' 2024 earnings has increased 6.7% to $5.29 per share over the past 60 days. QLYS has a market cap of $7.22 billion and its shares have surged 76% in the past year.
Gitlab is benefiting from a robust product portfolio that integrates AI-powered DevSecOps features into a single application to boost productivity. It enables businesses to create more reliable and functionality-packed mission-critical software.
This Zacks Rank #2 company's platform improves engineering productivity and reduces software spend. Gitlab has a market cap of $9.8 billion.
GTLB shares have gained 43.3% in the past year. The consensus mark for fiscal 2025 earnings has jumped 126.7% over the past 60 days to 34 cents per share.
Fabrinet is benefiting from strong demand for its next-generation optical interconnect for AI applications. This is expected to drive this Zacks Rank #2 company's top-line growth this year.
Fabrinet currently has a market cap of $6.91 billion and its shares have returned 45.5% in the past year. The Zacks Consensus Estimate for its fiscal 2024 earnings has improved 2% over the past 60 days to $8.25 per share.
Smartsheet is benefiting from an expanding customer base. This Zacks Rank #2 company ended third-quarter fiscal 2024 with an annual recurring revenue (ARR) of $981 million and more than 13.9 million Smartsheet users. SMAR had 59 customers with ARR above $1 million.
Smartsheet has a market cap of $6.52 billion and its shares have returned 23% in the trailing 12-month period. The consensus mark for fiscal 2025 earnings has jumped 20.3% over the past 60 days to 89 cents per share.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.