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Beyond the Magnificent 7: Check Out These Tech Rising Stars


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Beyond the Magnificent 7: Check Out These Tech Rising Stars

The often sees investment narratives dominated by the Magnificent Seven tech stocks. While these giants have earned their status, focusing solely on them can mean missing significant opportunities. A diversified portfolio and the potential for outsized returns often lie in identifying companies with strong fundamentals who lay beyond this well-trodden ground.

Appian Corporation: Low-Code, High Potential

Appian (NASDAQ:) empowers businesses to quickly build and deploy custom applications through its low-code platform.

This platform integrates artificial intelligence (AI), process automation, and data management, streamlining operations across industries like financial services and healthcare.

Appian’s recent financial performance signals a company on the rise. Fourth-quarter 2024 cloud subscription revenue jumped 19% year-over-year to $98.9 million, contributing to a total Q4 revenue of $166.7 million (a 15% increase).

Crucially, Appian reported a GAAP operating income of $5.0 million for Q4, a significant improvement from a $16.8 million loss in the prior-year quarter.

For the full year 2024, cloud subscription revenue grew 21% to $368.0 million, while total revenue increased 13% to $617.0 million. The company is guiding for further growth in 2025, projecting cloud subscription revenue to increase by 14% year-over-year.

Trading around $34.69, Appian’s stock experienced a healthy jump after its Q4 earnings release, reflecting investor optimism. However, analyst sentiment remains mixed, with a consensus Hold rating and an average price target of $40.17. This suggests a potential upside but also acknowledges some inherent risks.

The increasing demand for rapid application development fuels Appian’s growth. The rise of cloud-based solutions and the integration of AI into business processes further enhance its prospects.

While the Hold rating suggests caution, Appian’s improving financials and positive 2025

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present a compelling, albeit moderately risky, opportunity for investors interested in the low-code automation market.

Monday.com: Building the Backbone of Modern Workflow

Monday.Com (NASDAQ:) provides a cloud-based Work OS platform, a central hub for managing projects, workflows, and team collaboration.

This platform allows businesses to create customized applications, fostering efficiency and transparency across various organizational functions.

Monday.com’s Q4 and full-year 2024 results reveal impressive growth. Q4 revenue reached $268.0 million, a 32% year-over-year increase. The company achieved a GAAP operating income of $9.6 million in Q4, a notable shift from a loss in the prior-year *******. For the full year, revenue soared 33% to $972.0 million.

The company also boasts a strong net dollar retention rate of 112%. Looking ahead, Monday.com projects 2025 revenue between $1.208 billion and $1.221 billion, representing 24% to 26% year-over-year growth.

The stock, currently trading near $306.50, has gained over 30% in 2025, reflecting strong investor confidence. The analyst consensus is a Moderate Buy, with an average price target of $353.32, indicating further potential gains. Notably, several analysts, including those at Goldman Sachs and Scotiabank, have recently raised their price targets, some exceeding $400.

Monday.com’s growth is driven by the global shift towards digital transformation and the increasing need for robust workflow management solutions, particularly in remote and hybrid work environments.

The company’s ongoing focus on AI integration, including the introduction of AI agents, positions it to capitalize further on this trend.

While the stock’s high price-to-earnings ratio (P/E) reflects a premium valuation, the consistent revenue growth, expanding profitability, and positive analyst sentiment suggest a company with a strong future.

Analog Devices: Building Blocks for a Connected World

Analog Devices (NASDAQ:) is a long-established semiconductor company specializing in high-performance analog, mixed-signal, and digital signal-processing integrated circuits (ICs).

These components are essential building blocks in a wide range of electronic devices, spanning the automotive, industrial, communications, and consumer sectors.

Analog Devices’ fiscal first quarter 2025 results showcased resilience in a challenging market. While Q1 revenue of $2.42 billion represented a 4% year-over-year decline, it exceeded analyst expectations. The company reported sequential growth in its Industrial and Automotive segments and double-digit growth in the Consumer sector.

Adjusted operating income for the quarter remained strong at $981 million, with an adjusted operating margin of 40.5%. Demonstrating confidence in its financial strength, Analog Devices’ dividend was increased by 8% to $0.99 per share, and the company authorized a substantial $10 billion share repurchase program.

Currently trading around $243.29, Analog Device’s stock is near its all-time high, reflecting a positive market response to its earnings and shareholder-focused initiatives.

The analyst consensus rating is a Moderate Buy, with an average price target of $255.19, providing some investor upside. However, recent rating upgrades have set a target price of around $270.00, suggesting an even greater potential upside for investors.

The stock’s recent performance is positive, with a 5-day increase exceeding 12% and a year-to-date gain of over 13%.

Analog Devices’ consistent dividend payments and recent dividend increase further enhance its appeal to income-seeking investors.

Analog Devices is positioned to benefit from several key trends: increasing electronic content in vehicles (driven by electrification and ADAS), the growth of industrial automation, and the expansion of 5G communication networks.

While ADI’s growth rate might be perceived as more measured compared to some tech sector companies, it offers stability and profitability within the critical semiconductor market.

The combination of dividend growth, a share repurchase program, and a strong market position make it an attractive option for investors seeking a balance of growth and income.

Beyond the Giants: A Tech Portfolio Diversification Strategy

Appian, Monday.com, and Analog Devices represent compelling investment alternatives to the Magnificent Seven, and each offers a unique value proposition. Appian is making strides in the low-code automation market, showing improved profitability.

Monday.com is rapidly expanding in the work management software space, fueled by digital transformation. Analog Devices, a semiconductor leader, provides stability and dividends driven by long-term trends in key industrial sectors.

These companies present varying levels of risk and potential reward. Appian and Monday.com offer higher growth but with corresponding volatility. Analog Devices provides a more established, potentially less volatile investment.

Incorporating emerging technologies like these three companies into a diversified technology portfolio can be a strategic approach to improve returns and mitigate risk.

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#Magnificent #Check #Tech #Rising #Stars

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