[ad_1]
of S&P500 (^GSPC 1.23%) The market index hit a new all-time high this week, closing Friday’s session at 4,838. This is 35% above the market bottom in October 2022, which marked the end of the last bear market.
Thanks to the strange way in which the definitions of bull and bear markets work, it’s now safe to say that this is a proper bull market. It wasn’t official until now, but it probably started 15 months ago.
Over the past 100 years, bullish market conditions have lasted an average of three years. The average stock market gain when the next bear market arrives is 114% over the same analysis period. A 35% gain and change in one year is a great start, but this bull market likely has the legs to make even bigger gains possible.
Of course, these market temperament categories are not hard and fast rules. These are useful rules of thumb that indicate statistical trends. History doesn’t repeat itself, but it often rhymes. So I think Wall Street is likely to continue down this well-trodden path for some time, as historical patterns suggest.
Therefore, you should have enough time to cash in on the new bull market by investing in high-growth stocks that are on the rise. The market environment is ripe for a long period of rising prices, especially as the Fed grapples with the inflation crisis. Given these optimal market conditions, we strongly recommend that you consider the following: Roku (Roku 3.58%) and crowdstrike holdings (CRWD 2.62%). These fast-growing tech stocks have all the right pieces of the pie, and they look like buys without hesitation at the moment.
CrowdStrike’s AI double-edged sword
Built on this bullish market backdrop, CrowdStrike seems to me to be a safe bet for two opportunities: artificial intelligence (AI) and cybersecurity (just kidding!).
The company utilizes machine learning tools to analyze and mitigate security threats. CrowdStrike benefits from the development of new AI technologies and applies fresh insights to security systems on the fly. At the same time, advances in AI research are giving hackers more tools and increasing the need for stronger security shields. This is a win-win situation, with CrowdStrike taking on both the good and the bad aspects of the evolving field of AI.
This unique position in the evolving AI landscape gives CrowdStrike a competitive edge. With innovative AI applications, such as Falcon Systems’ AI chatbot Charlotte, CrowdStrike is not only keeping up with cybersecurity trends, but also setting them and challenging others to catch up.
It shows in CrowdStrike’s financial reports. Not only is revenue and free cash flow growing rapidly, but that growth has accelerated in recent quarters.
CRWD Revenue (TTM) Data by YCharts
Of course, investors are embracing CrowdStrike’s AI-driven growth. The stock has increased 188% over the past 52 weeks, pushing its valuation to 24.5 times trailing sales. In contrast, the S&P 500’s average price-to-sales ratio is currently 2.6, which is considered a historically high multiple to begin with.
So CrowdStrike isn’t a cheap stock, but you get what you pay for. We are a market-leading expert in the thriving cybersecurity market, using the latest AI tools to keep hackers at bay. For investors looking to capitalize on the intersection of AI and cybersecurity, CrowdStrike now offers an attractive opportunity. This is an expensive stock, but it should be worth every penny as the company’s growth prospects continue to expand.
Roku’s hidden growth rocket
Many investors have been quick to ignore Roku, as the media streaming platform specialist is currently unprofitable. That is, the company generated free cash flow of $102 million over the past four quarters based on sales revenue of $3.4 billion, but its bottom line for the same period was $868 million. This is a net loss and continues to decline. .
However, you should know that Roku essentially volunteered these rock-bottom benefits. As rivals and challengers to its dominant position in the market fought inflation with higher prices, Roku kept its price tag and royalty rate stable. This is an expensive tactic, but it’s also an effective one. In his November third quarter update, the company boasted 75.8 million active accounts. This is a 34% increase from his 56.4 million account two years ago. Over this period, quarterly sales increased from $680 million to $912 million.
global rival samsung‘s (SSNL.F -28.75%) Sales for the same period decreased by 18%. It’s not an apples-to-apples comparison given the South Korean high-tech electronics conglomerate’s wide range of products and services, but Samsung’s declining revenue line stands in sharp contrast to Roku’s phenomenal growth.
Market makers largely left Roku bleeding in the ditches of Wall Street two years ago, and despite a 73% price increase over the past 52 weeks, the stock remains at its lowest point since summer 2021. It is trading 82% below its all-time high.
As this bull market continues, global demand for user-friendly streaming platforms should rise again. At the same time, the long-term downturn in the advertising market will once again result in strong demand, and Roku should be able to collect dramatically richer revenues in his 2024 and beyond.
Remember, the company used to rely heavily on device sales, but has instead focused on more lucrative software licenses and advertising sales. And so far, the market has given Roku almost zero credit for this innovative strategic shift. I can’t wait to see what happens to stock prices when the recovered economy starts paying dividends.
This exciting growth stock trades at just 3.7 times sales and 82% below its all-time high. Still, here we are. I think you’ll be kicking yourself if you don’t pick up a few shares of this undervalued growth rocket before this bull market gets into full swing.
[ad_2]
Source link
