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Cellebrite (CLBT) and LiveRamp (RAMP) Are Aggressive Growth Stocks

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Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has two new stocks for your aggressive growth stock radar screen. These are both tech stocks that have been showing good growth.

First up is Cellebrite (CLBT - Free Report) which is a Zacks Rank #1 (Strong Buy) and sports an A for Growth and a D for Value in the Zacks Style Scores. Brian loves to focus on what he calls the growth divergence when a stock has a strong Zacks Style Score for growth and a weak Style Score for value.

Cellebrite (CLBT - Free Report) is a provider of digital intelligence solutions of government agencies as well as the general public. They help organize and maintain critical data for investigations and other sensitive areas. The idea here is that the company has a very sticky client base and that keeps a steady revenue stream flowing.

Cellebrite (CLBT - Free Report) is slated to post revenue growth of 17% this year and another 17% next year. On top of that, the company has posted four straight beats of the Zacks Consensus Estimate over the last year with the average positive surprise working out to be 225%. That number is a little skewed by the 800% positive earnings surprise the company posted in the most recent quarter.

Brian notes that the valuation is a little stiff here at 34x forward earnings and a price-to-book multiple of 43x but reminds us that this is an asset-slim business so don’t be too afraid of the big price-to-book multiple. As for the earnings multiple, this stock is a consistent grower so the multiple is more or less justified where it is.

Next on the list is LiveRamp (RAMP - Free Report) which is a Zacks Rank #1 (Strong Buy). This stock has a great growth divergence with an A for Growth and an F for Value. This company offers a platform that helps measure how connected a customer is to a brand. This is a software-as-a-service style name that helps increase consumer engagement.

As with CLBT, Brian reviews the earnings history, estimate revisions, and the valuation for LiveRamp (RAMP - Free Report) . Brian notes that RAMP posted a big move higher following the most recent earnings and shows that the company is another consistent grower albeit on a bigger base than for CLBT.


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LiveRamp Holdings, Inc. (RAMP) - free report >>

Cellebrite DI Ltd. (CLBT) - free report >>

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