Is monday.com (MNDY) an Emerging Growth Company?

ClearBridge Investments, an investment management company, released its “ClearBridge Global Growth Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, global equities continued to move higher fueled by improving investor sentiment, better economic data in the U.S., rate cuts beginning in Europe, and confidence in the Japanese economy. The Benchmark MSCI All Country World Index rose by 8.20%, driven by strong performance in the U.S. The S&P 500 Index surged by 10.56%, while the MSCI EAFE Index increased by 5.79%. Growth stocks saw a strong increase at the beginning of the year, buoyed by the expectation of a continued decrease in bond yields from their 2023 high. Against this backdrop, the strategy outperformed its benchmark for the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

ClearBridge Global Growth Strategy highlighted stocks like Monday.com Ltd. (NASDAQ:MNDY), in the first quarter 2024 investor letter. Monday.com Ltd. (NASDAQ:MNDY) develops software applications and work management tools. The one-month return of Monday.com Ltd. (NASDAQ:MNDY) was 2.28%, and its shares gained 35.72% of their value over the last 52 weeks. On June 26, 2024, Monday.com Ltd. (NASDAQ:MNDY) stock closed at $229.52 per share with a market capitalization of $11.425 billion.

ClearBridge Global Growth Strategy stated the following regarding Monday.com Ltd. (NASDAQ:MNDY) in its first quarter 2024 investor letter:

"In the emerging growth bucket, in addition to Zealand Pharma, we started a position in Monday.com Ltd. (NASDAQ:MNDY), which offers front office software-as-a-service that enables organizations to build custom applications and solutions for project management, customer relationship management, marketing and software development. The company has low cross-selling penetration across its existing customers and stands to expand as its platform broadens. Mmonday.com is fundamentally sound with best-in-class free cash flow margins."

Software engineers collaborating on a project while seated in a shared workspace.

Monday.com Ltd. (NASDAQ:MNDY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Monday.com Ltd. (NASDAQ:MNDY) at the end of the first quarter which was 48 in the previous quarter. Monday.com Ltd. (NASDAQ:MNDY) saw a 34% increase in first-quarter revenue to $216.9 million. While we acknowledge the potential of Monday.com Ltd. (NASDAQ:MNDY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed Monday.com Ltd. (NASDAQ:MNDY) in another article and shared the list of stocks Jim Cramer is recommending in June. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.