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2 Intriguing Highly Ranked Stocks to Consider as Q2 Begins

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With a surging presence in their respective business industries, AppLovin Corporation (APP - Free Report)  and Coinbase Global (COIN - Free Report)  are two of the most intriguing stocks to watch as the second quarter begins.

During Q1, AppLovin’s stock soared +73% with Coinbase shares climbing +44% to impressively outperform the Nasdaq’s +9% year-to-date performance and the S&P 500’s +10%.

With that being said, here’s a look at why the strong price performances of AppLovin and Coinbase stock may continue.

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AppLovin’s Services Are Becoming Essential

It seems like there is an app for everything nowadays and this conundrum has made AppLovin one of the most enticing technology services stocks. AppLovin’s app-building technology platform also consists of measurement and analytics for marketing which provides marketers with the visibility, insight, and data required to scale their apps.

AppLovin is utilizing an AI-powered advertising engine and the company’s expansion since its 2021 IPO has been remarkable. Notably, AppLovin’s stock currently sports a Zacks Rank #1 (Strong Buy) and has an “A” Zacks Style Scores grade for Growth. Total sales are projected to climb 23% this year and jump another 10% in fiscal 2025 to $4.44 billion.

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More impressive is that AppLovin is already profitable with annual earnings now expected to skyrocket 153% in FY24 to $2.48 per share compared to $0.98 a share last year. Plus, FY25 EPS is projected to leap another 22%. Furthermore, AppLovin's stock trades at a reasonable 27.8X forward earnings multiple considering its very expansive outlook and EPS estimates have skyrocketed over the last 60 days for both FY24 and FY25.

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Coinbase is Benefitting from the Bitcoin Surge

Whether you agree with the concept of cryptocurrencies or not, the recent surge in Bitcoin has been captivating. Correlating with such, Coinbase’s stock also sports a Zacks Rank #1 (Strong Buy) and is one the most compelling securities and exchanges providers at the moment.

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Coinbase went public in 2021 as well and has already shown the ability to turn a desirable profit as the largest U.S. cryptocurrency exchange. Amid the recent surge in Bitcoin, Coinbase’s FY24 earnings estimates have catapulted to $1.68 per share compared to projections that called for an adjusted loss of -$0.42 a share 60 days ago. Plus, FY25 EPS revisions have climbed to $1.31 per share versus estimates that called for a loss of -$0.29 a share two months ago.

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Bottom Line

Rising earnings estimate revisions allude to the notion that it’s still time to buy AppLovin and Coinbase’s stock. To that point, it would be no surprise if their strong YTD performances continued making them two of the most intriguing stocks to consider as Q2 begins.  


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AppLovin Corporation (APP) - free report >>

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