3 Nasdaq-Listed Tech Stocks Flying-High in 2025 Signaling More Upside

Despite a challenging start to 2025 for U.S. stock markets, particularly the tech sector, three Nasdaq-listed stocks with favorable Zacks Ranks are poised for near-term double-digit returns: CyberArk Software (CYBR), Lam Research Corp. (LRCX), and monday.com Ltd. (MNDY). CYBR is benefiting from cybersecurity demand with expected revenue and earnings growth of 31.9% and 25.1%, respectively, while LRCX is driven by strength in 3D DRAM and advanced packaging with expected revenue and earnings growth of 22.2% and 33.4%, respectively; MNDY is experiencing growth in its Work OS platform with expected revenue and earnings growth of 25.6% and 6.3%, respectively.

Analysis

The U.S. stock market, particularly the technology sector, has encountered headwinds in 2025, evidenced by the Nasdaq Composite's 0.4% year-to-date decline, following an AI-driven bull run in 2023-2024. Factors such as overstretched valuations, persistent inflation, weak economic indicators, geopolitical tensions, and concerns over potential tariff and trade policies have dampened investor confidence. Ambiguity surrounding Federal Reserve rate cuts and the emergence of low-cost Chinese AI platforms further exacerbate these concerns. Despite this challenging environment, specific Nasdaq-listed technology companies with strong fundamentals are identified as potential outperformers. CyberArk Software Ltd. (CYBR), holding a Zacks Rank #1, is capitalizing on robust demand for cybersecurity solutions, projecting current-year revenue and earnings growth of 31.9% and 25.1%, respectively, with its consensus earnings estimate improving 3.6% in the last 30 days and an average brokerage price target suggesting a 16.6% upside. Lam Research Corp. (LRCX), a Zacks Rank #2 stock, is poised to benefit from recovering memory spending and increased wafer fab equipment (WFE) investment, which is forecasted to reach approximately $100 billion in 2025; LRCX anticipates 22.2% revenue growth and 33.4% earnings growth for the current year, with an average price target indicating a 12.4% upside. Monday.com Ltd. (MNDY), also a Zacks Rank #1, is demonstrating strong traction with its Work OS platform, expecting 25.6% revenue growth and 6.3% earnings growth for the current year, its consensus earnings estimate having risen 12% in the past 30 days, and an average brokerage target suggesting a 21.3% potential increase.

Key Decisions for Investors

• Given the broader market challenges and the Nasdaq's 0.4% YTD decline, investors should focus on technology stocks demonstrating strong individual fundamentals and positive analyst sentiment, such as those highlighted with favorable Zacks Ranks.
• Consider CyberArk Software (CYBR) for its significant expected revenue growth of 31.9% and earnings growth of 25.1%, driven by cybersecurity demand and a strategic shift to SaaS, supported by brokerage targets indicating a 16.6% average upside with minimal forecasted downside.
• Evaluate Lam Research (LRCX) based on its projected 22.2% revenue and 33.4% earnings growth, tied to the anticipated rebound in memory spending and a $100 billion WFE market in 2025, while remaining mindful of its brokerage target range which includes a potential 16.7% downside.
• Assess monday.com (MNDY) for its robust 25.6% expected revenue growth and a significant 12% upward revision in current-year earnings estimates over the last 30 days, with analysts' average price target suggesting a 21.3% upside potential.
• Maintain awareness of overarching market risks, including persistent inflation, Federal Reserve policy uncertainty, and geopolitical developments, which could continue to exert pressure on the technology sector despite individual company strengths.