Magnificent Seven Collaborator Breaks Out Past Buy Point

IPO Stock Of The Week Monday.com (MNDY), a collaborator with multiple Magnificent Seven stocks, is trying to break out past a new buy point after a big surge in recent weeks. MNDY stock is on IBD’s IPO Leaders screen.

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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, HR, and product development.

Monday.com collaborates and integrates with firms including Magnificent Seven stocks Microsoft (MSFT) and Alphabet (GOOGL), along with Zoom Video Communications (ZM), HubSpot (HUBS) and more.

Through its open platform Monday AI, the company enables clients to build any kind of AI app. Still in beta and with more apps to come, uses range from sentiment analysis to customer experience (CX) chatbots and content generation.

In its Q3 report on Nov. 13, the AI stock leader generated a whopping 1,180% EPS gain to 64 cents a share. Third-quarter revenue of $189.2 million marked a 38% gain over the year-ago period.

MNDY stock boasts a solid 96 IBD Composite Rating, and its recent gains make it a top stock to buy and watch, along with other Magnificent Seven stocks.

Magnificent Seven Partner Breaks Out

The AI stock is trying to break out past a 179.62 buy point in a double bottom, according to IBD MarketSmith chart analysis. Shares are just below their correct entry Friday.

Since bottoming on Oct. 26, MNDY stock has rallied as much as 50% to this week’s highs. That shows big institutional demand.

Meanwhile, the relative strength line shot up in recent weeks, but is still a bit off its old highs. It’s a key technical indicator to watch. Ideally, the RS line should hit a new high on or before the breakout day to confirm the IPO stock as a market leader.

Monday.com joins these Magnificent Seven stocks in or near buy zones. Apple (AAPL) is 2% away from a cup-with-handle’s 192.93 buy point. Microsoft is in a buy area past a 366.78 cup-base entry. But Nvidia (NVDA) gave up its 476.09 double-bottom entry this week.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.

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