Several growth stocks announced better-than-expected third-quarter results recently, displaying their ability to navigate an uncertain macro backdrop. The Federal Reserve’s rate of interest cuts are expected to supply relief to growth stocks and boost their prospects. Bearing that in mind, we used TipRanks’ Stock Comparison Tool to position Palantir Technologies (PLTR), Monday.com (MNDY), and SoFi Technologies (SOFI) against one another to search out probably the most attractive growth stock, in keeping with analysts.
It’s price noting that the revenue growth of Palantir’s U.S. government business accelerated to 40% in Q3 from 24% in Q2, while the U.S. business business delivered top-line growth of 54%. In actual fact, the corporate highlighted that customer count within the U.S. business business jumped 77% in comparison with the 37% growth in Q3 2023.
PLTR shares have rallied 283% thus far this 12 months, as investors welcomed the stock’s inclusion within the S&P 500 (SPX) and are optimistic concerning the company’s AI tailwinds. Further, on November 15, PLTR stock surged 11% after the corporate announced its plan to shift its listing to Nasdaq from the NYSE. In contrast to the upbeat investor views, Wall Street is sidelined on PLTR stock.
Following the Q3 results, Monness analyst Brian White reiterated a Sell rating on PLTR stock with a price goal of $18. The analyst noted that Palantir’s enterprise value to revenue multiple of 26x is way higher than the 6.1x average of the stocks in his software group. He added that PLTR trades at a 39% premium to semiconductor giant Nvidia’s (NVDA) EV/revenue multiple.
While White believes that Palantir is well positioned to profit from AI and capitalize on volatile geopolitics in the long term, he contends that the stock’s valuation is lofty, revenue recognition from government-related contracts has been uneven, and execution has been “spotty.”
Overall, Wall Street has a Hold consensus rating on Palantir Technologies stock based on three Buys, seven Holds, and 6 Sell recommendations. At $33.73, the typical PLTR stock price goal implies about 49% upside potential.
Nonetheless, shares fell after the earnings report as MNDY issued subdued Q4 guidance. The corporate expects Q4 revenue to grow within the range of 28% to 29%, which indicates a slowdown from Q3.
Nonetheless, the corporate highlighted its achievement of surpassing $1 billion in annual recurring revenue (ARR) in q3 and is optimistic about improving its retention rates, with a deal with larger customers. It’s price noting that MNDY’s net dollar retention rate got here in at 111% in Q3.
Following the Q3 print, JPMorgan analyst Pinjalim Bora reaffirmed a Buy rating on Monday.com stock with a price goal of $350.The analyst stated that the corporate delivered a “high quality quarter in a choppy macro backdrop,” with all major metrics surpassing the Street’s estimates. That said, he noted that the beat-and-raise magnitude moderated in comparison with historical norms, perhaps because of continued macro challenges that hit the business in September.
Moreover, Bora thinks that persistent underperformance in sales hiring could have pushed numbers into the following 12 months from the second half of this 12 months. Looking beyond the modest expectations miss, the analyst contends that Monday.com continues to execute well, driving 33% growth at a billion-dollar scale. He also highlighted some strength areas in Q3, just like the slight sequential improvement in net retention rates, continued growth amongst a few of the largest customers, and robust improvement in profitability and free money flow.
Overall, Bora sees the pullback in MNDY stock as an excellent buying opportunity for long-term shareholders.
With 16 Buys versus 4 Holds, Monday.com stock scores a Strong Buy consensus rating on TipRanks. The typical MNDY stock price goal of $325.67 implies 24% upside potential. Shares have risen about 40% year-to-date.
SoFi Technologies shares have advanced about 37% thus far this 12 months. The fintech company delivered stellar third-quarter results, with revenue rising 30% year-over-year to $697 million. Furthermore, the corporate swung to earnings per share (EPS) of $0.05 from a loss per share of $0.29 per share.
Management highlighted that the corporate’s technique to shift towards capital-light, higher RoE (return on equity), fee-based revenue streams is delivering the specified results, with the Financial Services and Tech Platform segments now accounting for 49% of the corporate’s adjusted net revenue in comparison with the 39% within the prior-year quarter.
With a robust base of 9.4 million members and continued product innovation, SoFi raised its full-year guidance and is confident concerning the road ahead.
Following the outcomes, JPMorgan analyst Reginald Smith reaffirmed a Hold rating on SOFI stock with a price goal of $9. While Smith praised the corporate’s capital-light Loan Platform strategy, he noted that uncertainties stick with regard to partner depth, pricing, and the sturdiness of this channel.
Smith added that SoFi’s long-term strategy and market positioning look promising. That said, concerns concerning the company’s accounting methodologies and valuation challenges over the near term keep him on the sidelines.
Overall, SoFi Technologies stock has a Hold consensus rating on TipRanks based on five Buys, seven Holds, and two Sell recommendations. The typical SOFI stock price goal of $10.13 implies about 26% possible downside from current levels.
Wall Street is currently sidelined on SoFi Technologies and Palantir stocks, while having a bullish view of Monday.com. Accordingly, analysts see higher see upside potential in MNDY stock from current levels than the opposite two growth stocks. As per TipRanks’ Smart Rating System, MNDY stock earns a rating of nine, which suggests that it could outperform the broader market over the long run.
