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5 Growth Stocks To Watch Now That Have Recently Reported Strong Quarter Earnings
If you are investing in growth stocks today, you may find that they seem to be having nearly the same momentum as they did in the stock market last year. After a rather underwhelming start for these growth names this year, it appears that growth stocks are back in favor. If you’re looking for stocks that could help you weather through the storms while contributing to your overall portfolio, could these tech stocks be great investments?
Considering that many of the top growth stocks making significant moves are mostly tech companies, it wouldn’t hurt to pay closer attention to these hypergrowth names. After all, these are the companies that have outpaced the rest, delivering massive returns to investors. Of course, you would also want to make sure that these hyper-growth stocks in your portfolio are well-positioned to continue delivering big gains. With all that being said, let’s look at some of the best growth stocks to watch in the stock market today.
Growth Stocks That Have Recently Reported Strong Quarter Earnings
- MongoDB Inc. (NASDAQ: MDB)
- DocuSign Inc. (NASDAQ: DOCU)
- Pinterest Inc. (NYSE: PINS)
- Cloudflare Inc. (NYSE: NET)
- BigCommerce Holdings Inc. (NASDAQ: BIGC)
While there are many ongoing developments in the cloud space, the database business is no exception. And that’s where MongoDB comes into the picture. The company aims to store all electronic information with its innovative cloud-based solution. While it’s not a major name like Amazon (NASDAQ: AMZN) or Microsoft (NASDAQ: MSFT), its flagship services have gained traction over the years.
The company’s most recent fiscal quarter shows us how fast it has been growing recently. MongoDB’s first-quarter sales came in 39% higher year-over-year to $182 million, comfortably ahead of Wall Street’s consensus estimate of $170 million. A big part of the strong result came from a 73% revenue increase from the cloud-based Atlas database service.
Considering many businesses are taking advantage of MongoDB’s flexible database systems to power their own software and services, MDB stock looks like a solid growth stock to put on your watchlist today.
DocuSign is a company that helps organizations connect and automate how they prepare, sign, and manage agreements. We all know the coronavirus pandemic has accelerated the shift toward remote work, but what many should know is that DocuSign’s digital agreement technology is making this trend a reality.
For those unfamiliar, the company offers the DocuSign Agreement Cloud, a software suite that includes DocuSign eSignature. It is an electronic signature solution that allows an agreement to be signed electronically on a variety of devices.
From the company’s most recent quarterly report, revenue came in 58% higher year-over-year to $469.1 million. More impressively, DocuSign continues to generate cash, with its operating cash flow and free cash flow rising 129% and 275% respectively. You could say that DocuSign has become a pillar of the ‘anywhere economy’ that lets people increasingly do anything in life and work from anywhere. Given the digital transformation that is happening worldwide, will you consider buying DOCU stock?
Pinterest is an image-sharing and social media company. Its platform allows users to search for and save information on easy-to-access digital ‘pinboards’. The company has been posting smashing quarterly results in the past few quarters. Some might say the company is set up for sustainable monetization. That’s because Pinterest is more visual and search-based, making advertisements easier and less intrusive for users. From the latest count, the company had 478 million global monthly active users.
From its first-quarter fiscal result, the company’s revenue soared 78.3% from the year-ago period to $485 million. Pinterest’s monthly active user surged by 30% and the average revenue per user came in 34% higher year-over-year.
Furthermore, the company is also continuing to strengthen its cash position. Investors love the company because the company is investing in comprehensive marketing. It has creative content creators that should drive long-term user engagement. Considering its solid fundamentals, would you agree that now is the time to place a pin on PINS stock?
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Cloudflare may not be a household name today in the cloud computing space, but I’ll not discard the possibility that it might be one in the future. For those unfamiliar with the business, Cloudflare’s aim is to build a better and safer internet. Some of the company’s potential growth drivers include serverless computing, internet of things (IoT), and 5G. These present massive opportunities for the company to tap into. With more businesses moving their operations to the cloud, Cloudflare could see explosive growth in this burgeoning cybersecurity industry. That’s because of its role in safeguarding and speeding up the internet.
From the company’s first-quarter earnings, revenue came in 51% higher year-over-year to $138.1 million. The network security and content delivery network (CDN) provider also sees strong large customer growth, with a record addition of roughly 120 large customers in the quarter.
More importantly, large customers now represent greater than 50% of revenue. Following these earnings, NET stock has surged around 20% over the past month. With NET stock generally showing upward momentum, would you say it’s a winning company that keeps winning?
When it comes to a leading SaaS (Software as a Service) e-commerce platform that empowers merchants to grow their businesses online, Shopify (NYSE: SHOP) usually tops the list. But did you know that BigCommerce is in the game as well?
And more importantly, it’s finding similar success. The company boasts many high-profile clients using its online store software. Amongst them are Ben & Jerry’s, Gillette, and B-Wear Sportswear, just to name a few. Overall, the company caters to a wide array of customers across numerous industries and 150 countries.
From the company’s first-quarter earnings, revenue soared 41% year-over-year to $46.7 million. This reflected another quarter of accelerating growth after three successive years of continuous growth. According to the management’s outlook, the company is still on track to reach profitability sometime in 2023. If you have missed the boat for Shopify stock, would BIGC stock be a better growth stock to buy? Considering the latter has a much lower valuation and much more growth runway, an investment in BigCommerce is certainly tempting.