June 7, 2021 6 minutes to read
This story originally appeared on StockMarket
5 Growth Stocks To Watch For Now That Have Reported Strong Quarterly Earnings Recently
If you invest in growth stocks today, you may find that they have almost the same dynamic as they did last year in the stock market. After a rather disappointing start for these growth stocks this year, growth stocks appear to be popular again. If you’re looking for stocks that will help you weather the storms while adding to your overall portfolio, could these technology stocks be a great investment?
When you consider that many of the top growth stocks that are making significant moves are primarily technology companies, it wouldn’t hurt to pay more attention to these hypergrowth names. After all, these are the companies that have overtaken the rest and are delivering massive returns for investors. Of course, you’ll also want to make sure that these high-growth stocks are well positioned in your portfolio to continue making big profits. After all of that, let’s take a look at some of the best growth stocks to watch in the stock market today.
Growth stocks that recently posted strong quarterly earnings
- MongoDB Inc. (NASDAQ: MDB)
- DocuSign Inc. (NASDAQ: DOKU)
- Pinterest Inc. (NYSE: PINS)
- Cloudflare Inc. (NYSE: NET)
- BigCommerce Holdings Inc. (NASDAQ: BIGC)
MongoDB
While there are many advancements in the cloud space, the database business is no exception. And this is where MongoDB comes in. The company’s goal is to save all electronic information with its innovative cloud-based solution. While it’s not a big name like Amazon (NASDAQ: AMZN) or Microsoft (NASDAQ: MSFT), its flagship services have grown in importance over the years.
The company’s most recent fiscal quarter shows us how fast it has grown lately. MongoDB revenue rose 39% to $ 182 million in the first quarter, well above Wall Street’s consensus estimate of $ 170 million. Much of the strong result came from a 73% increase in sales with the cloud-based Atlas database service.
Given that many companies use MongoDB’s flexible database systems to run their own software and services, MDB stock looks like a solid growth stock to put on your watchlist today.
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DocuSign
DocuSign is a company that helps organizations connect and automate the way they prepare, sign, and manage agreements. We all know that the coronavirus pandemic has accelerated the shift towards remote working, but what many should know is that DocuSign’s digital agreement technology is making this trend a reality.
For strangers, the company offers the DocuSign Agreement Cloud, a software suite that includes DocuSign eSignature. It is an electronic signature solution that allows an agreement to be electronically signed on a wide variety of devices.
The company’s most recent quarterly report found sales increased 58% year over year to $ 469.1 million. Even more impressive, DocuSign continues to generate cash, with cash flow from operations and free cash flow increasing 129% and 275%, respectively. You could say that DocuSign has become a pillar of the Anywhere Economy, enabling people to do anything in life and work from anywhere. With the digital transformation happening around the world, are you considering buying DOCU shares?
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Pinterest is an image sharing and social media company. Its platform enables users to search for and save information on easily accessible digital “pin boards”. The company has released staggering quarterly results over the past few quarters. Some might say the company is geared towards sustainable monetization. That’s because Pinterest is more visual and search-based, which makes advertising easier and less intrusive for users. At the last count, the company had 478 million monthly active users worldwide.
Based on its first quarter earnings, the company’s revenue increased 78.3% year over year to $ 485 million. Pinterest’s monthly active users increased 30% and the average revenue per user increased 34% year over year.
In addition, the company is further expanding its liquidity position. Investors love the company because the company invests in extensive marketing. It has creative content creators who should encourage long-term user loyalty. Given the solid fundamentals, would you agree that now is the time to infect PINS stock?
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Cloud flare
Cloudflare might not be a household name in the cloud computing space today, but I’m not going to rule out the possibility that it could be in the future. For those unfamiliar with the business, Cloudflare’s goal is to create a better, safer internet. The company’s potential growth drivers include serverless computing, Internet of Things (IoT) and 5G. These offer the company enormous opportunities to tap into them. As more businesses move to the cloud, Cloudflare could see explosive growth in this emerging cybersecurity industry. That’s because of its role in securing and speeding up the internet.
From the company’s first quarter earnings, revenue increased 51% year over year to $ 138.1 million. The provider of network security and content delivery networks (CDN) also recorded strong growth in major customers with a record growth of around 120 major customers in the quarter.
More importantly, major customers now account for more than 50% of sales. After those gains, NET stock is up around 20% over the past month. Since NET stock is generally showing upward momentum, would you say it’s a successful company that continues to win?
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BigCommerce holdings
When it comes to a leading software as a service (SaaS) e-commerce platform that enables merchants to grow their business online, Shopify (NYSE: SHOP) is usually high on the list. But did you know BigCommerce is in the game too?
More importantly, it’s a similar success. The company has many high profile customers who use its online store software. These include Ben & Jerry’s, Gillette and B-Wear Sportswear, to name a few. Overall, the company serves a wide range of customers from numerous industries and 150 countries.
From the company’s first quarter earnings, revenue increased 41% year over year to $ 46.7 million. This reflected another quarter of accelerated growth after three consecutive years of continuous growth. According to management’s outlook, the company is still well on its way to achieving profitability sometime in 2023. If you missed the boat for Shopify stock, would BIGC stock be a better growth stock? Considering the latter has a much lower valuation and a lot more opportunities for growth, investing in BigCommerce is certainly tempting.
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