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Okay, so it’s almost time to ring out the old year and ring in the new one. While you’re busy making New Year resolutions, let me tell you that there couldn’t be a better time to build your portfolio.
Do you really want to be stuck with the growth stocks of yesterday? Or the ones that somehow gained from the health crisis but are now faced with the toughest of comps? Or perhaps those that you got into before the pandemic beat them down, and you basically have your fingers crossed now that the worst seems to be behind us?
Really, it is not worth the trouble. The longer you hold on to stocks that don’t pay, the more you lose in terms of cash and also time. A year is a really long time. Too long to wait when you should be growing.
Else, this has been a great year for you so far and you want 2021 to be as good or better.
Whether you’re young and starting to invest or older and only have a certain portion of your savings on which you’d invest in riskier stocks, the advice is the same.
There are tried and tested methods to eliminate risk. So don’t go reinventing the wheel.
Stick to the basics. Remember that it’s the earnings results that ultimately drive stocks. If a company has great technology that it isn’t able to market, or all the marketing techniques at its disposal but without a well-differentiated product, in both cases, it may not generate the desired results.
At the end of the day, you want to invest in companies that can turn their offerings into cash. You don’t want that them to take too much risk todo this and in case of those that aren’t generating profits as yet, you want to see a clear path to profit.
That means, you must develop the habit of reading the numbers. Because that’s what will tell you what to snap up and what to pass up.
Zacks proprietary models do just that. There’s a ranking system for all the stocks in the universe that captures these numbers. There are a number of ways of categorization that helps divide stocks according to their industry, also according to their growth potential or value prospects. Then of course, there are the numbers themselves. This makes it much easier to choose from the thousands of stocks available.
So here are a few that you may want to check out because of the growth potential they offer-
Digital Turbine offers products and solutions like DT Ignite(TM), a mobile device management solution with targeted app distribution capabilities; DT IQ(TM), a customized user experience and app discovery tool; DT Marketplace(TM), an application and content store; and DT Pay(TM), a content management and mobile payment solution to mobile operators, device OEMs and third parties. It operates primarily in Berlin, Singapore and Sydney.
Its fiscal 2021 (ending March) and 2022 revenues are currently expected to grow 104.07% and 28.5%, respectively. So despite the tough comps next year, growth is expected to continue. And perhaps as you already know, a strong growth stock should be able to continue growing its revenues. It isn’t enough to simply grow earnings, because without revenue growth, earnings growth can only be limited by the extent of operating leverage and additional efficiencies that the company may be able to achieve.
Its fiscal 2021 and 2022 earnings are expected to grow 215.0% and 37.0%, respectively.
After it beat the Zacks Consensus Estimate by 36.4% in the September quarter, current and following year estimates moved up 34.0% and 34.4%, respectively.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
Cloudera, Inc.
Cloudera develops and distributes software for business data operations including storage, access, management, analysis, security, search, processing and analysis. Its products include Cloudera Enterprise Data Hub, Cloudera Analytic BD, Cloudera Operational DB, Cloudera Data Science & Engineering and Cloud Essentials.
The company’s fiscal 2020 and 2021 revenues are expected to grow 8.8% and 9.3%, respectively.
Its earnings are expected to grow 407.7% and 11.7%, respectively.
After topping the Zacks Consensus Estimate by 66.7% in the September quarter, current and following year estimates moved up 21.2% and 2.3%, respectively.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
nLIGHT provides high-power semiconductor and fiber lasers into industrial, microfabrication, aerospace and defense markets.
The company’s 2020 and 2021 revenues are expected to grow 24.5% and 15.4%, respectively.
Its earnings are expected to grow 300.0% and 211.1%, respectively.
Following a September quarter surprise of 1,100%, The Zacks Consensus Estimate for 2020 went from a 4 cent loss to a 12 cent profit. The 2021 estimate jumped 27.6% from 29 cents to 37 cents.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
Himax designs, develops and markets critical semiconductors components include display drivers for large-sized TFT-LCD panels, which are used in desktop monitors, notebook computers and televisions; and display drivers for small- and medium-sized TFT-LCD panels, which are used in mobile handsets and consumer electronics products such as digital cameras, mobile gaming devices and car navigation displays. It is also expanding its product offering to include LCD TV chipset solutions and LCOS microdisplays.
The company’s 2020 and 2021 revenues are expected to grow 30.3% and 21.5%, respectively.
Its earnings are expected to grow 457.1% and 76.0%, respectively.
The company only met expectations for the September quarter, but after the announcement, analysts took their 2020 and 2021 estimates higher. Accordingly, the Zacks Consensus Estimate for 2020 jumped 733% to 25 cents and that for 2021 jumped 25.7% to 44 cents.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
A10 provides software based application networking solutions enabling enterprises, service providers, Web giants and government organizations to enhance, secure and optimize the performance of their data center applications and networks. The company delivers its solutions on optimized hardware appliances and as virtual appliances across its Thunder Series and AX Series product families.
The company’s 2020 and 2021 revenues are expected to grow 6.6% and 7.3%, respectively.
Its earnings are expected to grow 1,300.0% and 23.8%, respectively.
The company beat expectations for the September quarter by 30.0%, after which the Zacks Consensus Estimate for 2020 jumped 16.7% to 42 cents and that for 2021 jumped 4% to 52 cents.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
Image: Bigstock
5 Tech Stocks Promising Solid Growth In 2021
Okay, so it’s almost time to ring out the old year and ring in the new one. While you’re busy making New Year resolutions, let me tell you that there couldn’t be a better time to build your portfolio.
Do you really want to be stuck with the growth stocks of yesterday? Or the ones that somehow gained from the health crisis but are now faced with the toughest of comps? Or perhaps those that you got into before the pandemic beat them down, and you basically have your fingers crossed now that the worst seems to be behind us?
Really, it is not worth the trouble. The longer you hold on to stocks that don’t pay, the more you lose in terms of cash and also time. A year is a really long time. Too long to wait when you should be growing.
Else, this has been a great year for you so far and you want 2021 to be as good or better.
Whether you’re young and starting to invest or older and only have a certain portion of your savings on which you’d invest in riskier stocks, the advice is the same.
There are tried and tested methods to eliminate risk. So don’t go reinventing the wheel.
Stick to the basics. Remember that it’s the earnings results that ultimately drive stocks. If a company has great technology that it isn’t able to market, or all the marketing techniques at its disposal but without a well-differentiated product, in both cases, it may not generate the desired results.
At the end of the day, you want to invest in companies that can turn their offerings into cash. You don’t want that them to take too much risk todo this and in case of those that aren’t generating profits as yet, you want to see a clear path to profit.
That means, you must develop the habit of reading the numbers. Because that’s what will tell you what to snap up and what to pass up.
Zacks proprietary models do just that. There’s a ranking system for all the stocks in the universe that captures these numbers. There are a number of ways of categorization that helps divide stocks according to their industry, also according to their growth potential or value prospects. Then of course, there are the numbers themselves. This makes it much easier to choose from the thousands of stocks available.
So here are a few that you may want to check out because of the growth potential they offer-
Digital Turbine, Inc. (APPS - Free Report)
Digital Turbine offers products and solutions like DT Ignite(TM), a mobile device management solution with targeted app distribution capabilities; DT IQ(TM), a customized user experience and app discovery tool; DT Marketplace(TM), an application and content store; and DT Pay(TM), a content management and mobile payment solution to mobile operators, device OEMs and third parties. It operates primarily in Berlin, Singapore and Sydney.
Its fiscal 2021 (ending March) and 2022 revenues are currently expected to grow 104.07% and 28.5%, respectively. So despite the tough comps next year, growth is expected to continue. And perhaps as you already know, a strong growth stock should be able to continue growing its revenues. It isn’t enough to simply grow earnings, because without revenue growth, earnings growth can only be limited by the extent of operating leverage and additional efficiencies that the company may be able to achieve.
Its fiscal 2021 and 2022 earnings are expected to grow 215.0% and 37.0%, respectively.
After it beat the Zacks Consensus Estimate by 36.4% in the September quarter, current and following year estimates moved up 34.0% and 34.4%, respectively.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
Cloudera, Inc.
Cloudera develops and distributes software for business data operations including storage, access, management, analysis, security, search, processing and analysis. Its products include Cloudera Enterprise Data Hub, Cloudera Analytic BD, Cloudera Operational DB, Cloudera Data Science & Engineering and Cloud Essentials.
The company’s fiscal 2020 and 2021 revenues are expected to grow 8.8% and 9.3%, respectively.
Its earnings are expected to grow 407.7% and 11.7%, respectively.
After topping the Zacks Consensus Estimate by 66.7% in the September quarter, current and following year estimates moved up 21.2% and 2.3%, respectively.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
nLight Inc. (LASR - Free Report)
nLIGHT provides high-power semiconductor and fiber lasers into industrial, microfabrication, aerospace and defense markets.
The company’s 2020 and 2021 revenues are expected to grow 24.5% and 15.4%, respectively.
Its earnings are expected to grow 300.0% and 211.1%, respectively.
Following a September quarter surprise of 1,100%, The Zacks Consensus Estimate for 2020 went from a 4 cent loss to a 12 cent profit. The 2021 estimate jumped 27.6% from 29 cents to 37 cents.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
Himax Technologies, Inc. (HIMX - Free Report)
Himax designs, develops and markets critical semiconductors components include display drivers for large-sized TFT-LCD panels, which are used in desktop monitors, notebook computers and televisions; and display drivers for small- and medium-sized TFT-LCD panels, which are used in mobile handsets and consumer electronics products such as digital cameras, mobile gaming devices and car navigation displays. It is also expanding its product offering to include LCD TV chipset solutions and LCOS microdisplays.
The company’s 2020 and 2021 revenues are expected to grow 30.3% and 21.5%, respectively.
Its earnings are expected to grow 457.1% and 76.0%, respectively.
The company only met expectations for the September quarter, but after the announcement, analysts took their 2020 and 2021 estimates higher. Accordingly, the Zacks Consensus Estimate for 2020 jumped 733% to 25 cents and that for 2021 jumped 25.7% to 44 cents.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
A10 Networks, Inc. (ATEN - Free Report)
A10 provides software based application networking solutions enabling enterprises, service providers, Web giants and government organizations to enhance, secure and optimize the performance of their data center applications and networks. The company delivers its solutions on optimized hardware appliances and as virtual appliances across its Thunder Series and AX Series product families.
The company’s 2020 and 2021 revenues are expected to grow 6.6% and 7.3%, respectively.
Its earnings are expected to grow 1,300.0% and 23.8%, respectively.
The company beat expectations for the September quarter by 30.0%, after which the Zacks Consensus Estimate for 2020 jumped 16.7% to 42 cents and that for 2021 jumped 4% to 52 cents.
The shares carry a Zacks Rank #2 (Buy) and Growth Score A.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>