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Investing in companies that can advance and profit from influential trends can be a life-changing path to wealth creation. Not every stock you buy will be a world-beating success story, but just holding a few big winners over the long term can deliver incredible returns.
If you’re looking for stocks that can help you take advantage of some of this century’s biggest technology trends, read why investing in two industry-leading companies can help you reap big financial wins. please.
This battered stock is the perfect way to represent the electric vehicle trend
albemarle (ALB -3.31%) is a leading lithium miner and a leading provider of lithium for batteries used in electric vehicles (EVs). If you’re looking for a mining strategy to benefit from long-term growth in the EV space, the company is worth considering as a potential investment. That battered stock could turn out to be a big winner in the long run.
Albermar’s results have been hit recently by falling lithium prices and competition from China-based rivals.Including major automobile manufacturers ford and general motors Faced with weaker-than-expected demand growth, it also cut back on its electric vehicle production plans. Amid this pressure, the company’s stock price has fallen 53% from its 2022 high. However, the performance was not actually disastrous.
Third-quarter sales rose about 10% from a year earlier to $2.3 billion, but the level was below analysts’ targets and the company’s previous outlook. Although the company’s performance this year will vary, it expects sales to increase 30% to 35% annually by the end of 2023.
ALB PS Ratio (Forward) data by YCharts
Valued at less than 1.9 times this year’s expected sales and less than 7 times expected earnings, Albemarle has significant growth potential at an affordable price.
The slowing growth of the EV market is related to macroeconomic pressures, but this will not last forever. If the decline in lithium prices turns out to be indeed cyclical and reverses at some point in the future, Albemarle stock should be able to deliver impressive gains.
Rising demand for cybersecurity is a top trend for growth investors
Cybersecurity is already central to business resilience and will become even more important in the future. The financial and reputational damage from security breaches continues to rise, with criminals targeting large companies and businesses in hopes of securing ransom payments or profiting from stolen data in other ways. The motivation to target institutions is increasing.
cloud strike‘s (CRWD -0.32%) Cloud-based software prevents cybersecurity breaches from occurring and protects your business from suffering potentially disastrous setbacks. The company’s Falcon platform uses artificial intelligence technology to catalog and adapt to new threats it encounters. Then, as the library of identified cyber-attacks continues to grow, all customers within a company’s network can benefit.
In the third quarter, CrowdStrike’s revenue increased 35% year-over-year to $786 million. Meanwhile, non-GAAP (adjusted) net income jumped 107% year over year to approximately $199 million, and free cash flow increased 37% to $239 million. The company also ended the period with total cash and equivalents of $3.17 billion against zero debt.
CrowdStrike’s business fundamentals remain solid and the business continues to have very promising long-term expansion prospects.
Even with strong momentum, the company will likely capture only a mid-single-digit percentage of the $100 billion total addressable market (TAM) that management projects for 2024. This means that cybersecurity specialists are still gaining market share at a healthy pace. There is still a lot of potential for growth.
Driven by current service growth, new product launches, collaboration potential, and untapped AI and cloud security opportunities, CrowdStrike expects TAM to explode to $225 billion in 2028.
With rapidly growing sales and profits and a huge market opportunity ahead, CrowdStrike stands out as a great way to capitalize on the growing demand for high-performance cybersecurity services.
Keith Noonan has a position at CrowdStrike. The Motley Fool has a position in and recommends CrowdStrike. The Motley Fool recommends General Motors and recommends the following options: Long January 2025 $25 Calls on General Motors. The Motley Fool has a disclosure policy.
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