Growth Stocks Shine Despite Uncertainty
The recent third-quarter results from several growth stocks have demonstrated their ability to thrive in an uncertain macroeconomic environment. The Federal Reserve’s interest rate cuts are expected to provide a much-needed boost to these companies. To identify the most attractive growth stock, we compared Palantir Technologies (PLTR), Monday.com (MNDY), and SoFi Technologies (SOFI) using TipRanks’ Stock Comparison Tool.
Palantir Technologies: A Mixed Bag
Data analytics company Palantir Technologies impressed investors with its strong Q3 results, driven by artificial intelligence (AI)-led demand. The company’s revenue grew 30% to $725.5 million, with its U.S. government business accelerating to 40% growth in Q3. However, Wall Street remains cautious on PLTR stock, citing its high valuation and uneven revenue recognition from government-related contracts. Despite this, the average PLTR stock price target implies about 49% upside potential.
Monday.com: A Strong Performer
Enterprise management software maker Monday.com reported better-than-expected Q3 results and raised its full-year guidance. The company’s revenue grew 33% year-over-year to $251 million, with adjusted EPS also rising 33%. Although shares fell after the earnings report due to subdued Q4 guidance, JPMorgan analyst Pinjalim Bora sees the pullback as a good buying opportunity for long-term shareholders. With a Strong Buy consensus rating on TipRanks, the average MNDY stock price target implies 24% upside potential.
SoFi Technologies: A Promising Fintech Company
SoFi Technologies shares have advanced about 37% so far this year, driven by its stellar Q3 results. The fintech company’s revenue rose 30% year-over-year to $697 million, with a shift towards capital-light, higher RoE revenue streams. While JPMorgan analyst Reginald Smith praises the company’s strategy, he remains cautious due to uncertainties regarding partner depth, pricing, and the durability of its Loan Platform channel. Overall, SoFi Technologies stock has a Hold consensus rating on TipRanks, with the average SOFI stock price target implying about 26% possible downside from current levels.
The Verdict
Wall Street is currently sidelined on SoFi Technologies and Palantir stocks, while having a bullish view of Monday.com. Analysts see higher upside potential in MNDY stock from current levels than the other two growth stocks. According to TipRanks’ Smart Score System, MNDY stock earns a score of nine, indicating that it could outperform the broader market over the long term.
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