Tuesday's IBD 50 Stocks To Watch pick, artificial intelligence leader Monday.com, is approaching a new buy point this week following a big rally last week. That makes this AI stock one of the best to watch right now. Shares dropped more than 1% early Tuesday.
With offices across the world, Monday.com has already established a global footprint. Through its workflow automation and productivity platform, the enterprise software firm works with clients across a range of fields, including marketing, sales, human resources and product development.
Through its open platform, Monday AI, the company works to enable clients to build any kind of artificial intelligence app. Still in beta and with more apps to come, its uses range from sentiment analysis to customer experience chatbots and content generation.
In its latest financial results issued on May 15, Monday.com reported first-quarter earnings that beat Wall Street's estimates. For the quarter ended March 31, the maker of project management software reported a profit of 61 cents a share on an adjusted basis, up 335% from a year earlier. Revenue rose 34% to $216.9 million.
In response, the AI stock soared more than 21% in huge volume, sending it in a bullish move above its 50-day line.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
AI Stock: Monday.com Eyes Buy Point
Monday.com stock is building the right side of a cup base that boasts an official buy point at 239, according to IBD MarketSurge chart analysis. Keep an eye out for a potential handle to offer a lower entry, with shares about 4% away from their buy trigger.
With IBD's equity exposure range at 80%-100%, investors have the flexibility to raise exposure as leading stocks break out past correct buy points.
Monday.com stock shows a solid 94 out of a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup. That makes Monday.com stock one of the best stocks to watch.
A key indicator to watch is the relative strength line for the AI stock. The RS line remains relatively far from its old highs, even after last week's big jump. Ideally, the RS line should hit a new high on the breakout day or shortly thereafter. So far, that hasn't happened yet, which is a warning signal.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Texas Roadhouse | 157.12 | Flat base | |
| PDD Holdings | 142.32 | Cup with handle | |
| Interactive Brokers | 112.50 | Tight area |
Source: IBD Data As Of May 21, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
