The supply chain is one of the most important components of any economy or business. And Manhattan Associates (MANH) brings new software offerings to the space along with a fresh entry for stock investors.

The Atlanta, Ga.-based company has been a strong performer in 2024, rising around 32% for the year so far and popping 39% from recent lows. More gains could lie ahead.

Manhattan provides software that helps customers manage their supply chains and inventory. It is a leader in the warehouse management systems niche as well as omnichannel order management.

Competitors include the likes of Panasonic-owned Blue Yonder as well as offerings from Oracle (ORCL) and SAP (SAP).

Manhattan's products allow customers to manage their stock through the entire supply chain, all the way down to the retail storefront. Its revenue is seen benefiting as more customers transition to the cloud, an area where it has focused sharply.

Analysts Bullish On Manhattan Stock

Wall Street experts are bullish on the stock. CFRA analyst Janice Quek rates it as a buy with a 317 price target.

"We maintain our Buy recommendation on shares of (Manhattan) on cloud expansion opportunities from its existing customer base as new cloud-based solutions expand its current portfolio of offerings," she said in a recent note to clients.

Quek added: "The launch of its Manhattan Active Supply Chain Planning solution also completes the shift of its entire portfolio of offerings to a cloud-first approach, while driving a competitive advantage from being the only vendor to have a combined Supply Chain Planning and Supply Chain Execution offering."

Piper Sandler analyst Quinton Gabrielli recently initiated the stock with an "overweight" rating. His price target is 326.

"Manhattan has over 1,200 customers, with less than 20% of them on a cloud solution," he said in a Nov. 24 note to clients. "Assuming a full transition to cloud, this represents more than $3 billion in revenue in the existing base alone."

Gabrielli believes that cloud migrations occurring through 2030 "will act as a multiyear catalyst" for the company. Further, he believes Manhattan will see "increased visibility and margin improvement moving forward."

Wall Street Snaps Up Big Cap Stock

Institutions certainly seem to be backing the firm, with the stock boasting an Accumulation/Distribution Rating of B-. This represents more buying than selling among funds of late.

In total, 62% of shares are currently held by funds, according to MarketSurge data. Highly rated holders include the MFS Growth Fund (MFEGX) and the Allspring Growth Fund (SGRAX).

The Big Cap 20 name recently triggered a 7% sell signal from a cup-base entry of 307.50 amid broader stock market weakness. But now it is testing support at the important 50-day moving average. The stock rose 0.3% Thursday but closed below the 50-day moving average.

Additionally, a new handle with an ideal buy point of 312.60 could form. That makes it a good watchlist candidate.

Overall performance of Manhattan stock is strong, with its IBD Composite Rating sitting at a near-perfect 98, as does its Earnings Per Share Rating. Earnings have grown by an average of 31% over the past three quarters.

However, while earnings are seen rising 23% this year, profit growth is expected to slow to 6% in 2025. The latter figure is not ideal for those following the IBD investing methodology. Gains of at least 25% are preferable.

Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.

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