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Astera Labs (ALAB) and AppLovin (APP) Are Aggressive Growth Stocks

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As the aggressive growth stock strategist at Zacks Investment Research Brian Bolan usually looks for stocks that have a strong Zacks Style Score for Growth and a weak Style Score for Value. This week he is looking at two “A” stocks and that is to say the company’s names start with the letter A. These two stocks also posted solid quarters, but are now priced lower than where they were prior to the earnings report.

Astera Labs (ALAB - Free Report) is a Zacks Rank #2 (Buy) and has an A for Growth and a F for Value in the Zacks Style Scores. The $12B market cap company reported a beat and raise quarter back on February 10th, but the stock has remained rather weak following the print. The company is expected to show solid growth in the coming year and Brian believes the fair value for this stock is in the $90 to $105 range. If the company continues to beat expectations, he says the stock could easily get to $125.

AppLovin (APP - Free Report) is a Zacks Rank #1 (Strong Buy) and it has an A for Growth and a F for Value. This stock has been the target of several short and distort campaigns with Fuzzy Panda being one of the more recent hit piece producers. Brian took exception to the idea of report using “formers” instead of saying “former employees” or being more literal. The company also quickly defended itself, and when there is real substance to an allegation we often see some time pass before a reply is made. The company responded to the claims in a matter of hours.

Just as in all of his Aggressive Growth Zacks Rank Buy videos, Brian reviews the earnings history, earnings estimates, growth projections and valuation before taking a look at the chart.


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