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This is a market that is very clearly favoring growth and technology stocks. After getting completely crushed in 2022 it makes sense that many of these bombed-out growth names have drawn investors back in.
Even after a strong start to the year, there are a number of growth names that are still compelling stock picks.
Image Source: Koyfin
Palo Alto Networks
Palo Alto Networks (PANW - Free Report) is a cybersecurity solutions firm. The company offers an array of different products and services including firewalls, secure private cloud software, and DNS security among many other things. PANW sells its products to medium and large enterprises across all major industries.
Palo Alto Networks is a high-performance stock. Even after the -40% drawdown it experienced in 2022 it has still considerably outperformed the market and its sector over the last two years. Over the last ten years PANW stock has more the 10x’d and compounded at an annual rate of 27%.
Image Source: Zacks Investment Research
Palo Alto Networks has impressive sales and earnings estimates. Current quarter sales are expected to grow 24% YoY to $1.7 billion, and current year sales are expected to climb 25% to $6.9 billion. Current quarter earnings are projected to grow 53% YoY to $0.92 per share, while current year earnings are expected to expand 59% to $4.01 per share.
Analysts have agreed unanimously on upgrading Palo Alto Network’s earnings expectations. Earnings have been revised higher by at least 15% across timeframes. This improving earnings outlook gives PANW a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
PANW is trading at a one-year forward sales multiple of 9x, which is just above its 10-year median of 8x, and below the industry average of 10x. There is no denying that Palo Alto Networks trades at a premium valuation, but when sales are projected to grow at more than 20% annually you often have to pay up.
Cyber security technology has become mission-critical for modern institutions, as it not only protects financial interests and data interests, but the reputation of an organization. PANW’s standalone applications allow organizations to easily enter the market for digital protection.
Image Source: Zacks Investment Research
Perion Network
Perion Network (PERI - Free Report) is a global technology company that provides online advertising solutions and search monetization to brands and publishers. The company is led by its two primary segments: Undertone and CodeFuel. Undertone is a creative digital branding while CodeFuel is a search monetization tool.
PERI is an incredibly strong performing stock. Over the last five years the stock has rallied 1600% and Perion is also one of the strongest performing stocks YTD.
Image Source: Zacks Investment Research
Perion Network is a Zacks Rank #1 (Strong Buy) stock, indicating upward trending earnings revisions. In the table below you can see just how bullish analysts are on PERI stock. Current quarter earnings have been revised higher by 30% over the last 60 days.
Image Source: Zacks Investment Research
After stalling out between 2014 and 2019 sales growth has since accelerated substantially higher. Current quarter sales are projected to grow 13% YoY to $142 million and current year sales are expected to climb 14% to $730 million. Earnings are expected to expand significantly as well, with current quarter earnings expected to increase 58% YoY.
Image Source: Zacks Investment Research
Perion Network is trading at a one-year forward earnings multiple of 17x, which is well below its three-year median of 27x. Its valuation is also considerably below the industry average, which presents a fantastic opportunity for investors, since it is also one of the top performing stocks in the sector.
Image Source: Zacks Investment Research
Perion Network is in an amazing spot to benefit from the continued growth of a digital-first economy. While the search business still likely has many years of growth, PERI has also positioned itself to benefit from the growth of the new AI based GPT technology. Perion has built a strong partnership with Microsoft (MSFT - Free Report) , allowing it to benefit from the long-term potential of ad sales in the Bing and broader AI ecosystem.
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2 Growth Stocks to Buy for the Next Leg Higher
This is a market that is very clearly favoring growth and technology stocks. After getting completely crushed in 2022 it makes sense that many of these bombed-out growth names have drawn investors back in.
Even after a strong start to the year, there are a number of growth names that are still compelling stock picks.
Image Source: Koyfin
Palo Alto Networks
Palo Alto Networks (PANW - Free Report) is a cybersecurity solutions firm. The company offers an array of different products and services including firewalls, secure private cloud software, and DNS security among many other things. PANW sells its products to medium and large enterprises across all major industries.
Palo Alto Networks is a high-performance stock. Even after the -40% drawdown it experienced in 2022 it has still considerably outperformed the market and its sector over the last two years. Over the last ten years PANW stock has more the 10x’d and compounded at an annual rate of 27%.
Image Source: Zacks Investment Research
Palo Alto Networks has impressive sales and earnings estimates. Current quarter sales are expected to grow 24% YoY to $1.7 billion, and current year sales are expected to climb 25% to $6.9 billion. Current quarter earnings are projected to grow 53% YoY to $0.92 per share, while current year earnings are expected to expand 59% to $4.01 per share.
Analysts have agreed unanimously on upgrading Palo Alto Network’s earnings expectations. Earnings have been revised higher by at least 15% across timeframes. This improving earnings outlook gives PANW a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
PANW is trading at a one-year forward sales multiple of 9x, which is just above its 10-year median of 8x, and below the industry average of 10x. There is no denying that Palo Alto Networks trades at a premium valuation, but when sales are projected to grow at more than 20% annually you often have to pay up.
Cyber security technology has become mission-critical for modern institutions, as it not only protects financial interests and data interests, but the reputation of an organization. PANW’s standalone applications allow organizations to easily enter the market for digital protection.
Image Source: Zacks Investment Research
Perion Network
Perion Network (PERI - Free Report) is a global technology company that provides online advertising solutions and search monetization to brands and publishers. The company is led by its two primary segments: Undertone and CodeFuel. Undertone is a creative digital branding while CodeFuel is a search monetization tool.
PERI is an incredibly strong performing stock. Over the last five years the stock has rallied 1600% and Perion is also one of the strongest performing stocks YTD.
Image Source: Zacks Investment Research
Perion Network is a Zacks Rank #1 (Strong Buy) stock, indicating upward trending earnings revisions. In the table below you can see just how bullish analysts are on PERI stock. Current quarter earnings have been revised higher by 30% over the last 60 days.
Image Source: Zacks Investment Research
After stalling out between 2014 and 2019 sales growth has since accelerated substantially higher. Current quarter sales are projected to grow 13% YoY to $142 million and current year sales are expected to climb 14% to $730 million. Earnings are expected to expand significantly as well, with current quarter earnings expected to increase 58% YoY.
Image Source: Zacks Investment Research
Perion Network is trading at a one-year forward earnings multiple of 17x, which is well below its three-year median of 27x. Its valuation is also considerably below the industry average, which presents a fantastic opportunity for investors, since it is also one of the top performing stocks in the sector.
Image Source: Zacks Investment Research
Perion Network is in an amazing spot to benefit from the continued growth of a digital-first economy. While the search business still likely has many years of growth, PERI has also positioned itself to benefit from the growth of the new AI based GPT technology. Perion has built a strong partnership with Microsoft (MSFT - Free Report) , allowing it to benefit from the long-term potential of ad sales in the Bing and broader AI ecosystem.