Don’t let the ample fear in the markets scare you off entirely. Some of the best growth stocks on the market are on sale now.
As the bear market wears on, most stocks have taken a pretty good hit so far in 2022. However, tech has gotten hit especially hard. Not only is this damaging to sentiment, it’s damaging to many investors’ portfolios. The silver lining is that we have an opportunity as we parse through certain categories, looking for the best growth stocks, best advertising stocks and so forth.
Salesforce (NYSE:CRM) is perhaps one of the best opportunities on the board when it comes to cloud stocks. Many companies are seeing some sort of slowdown in their business, whether it’s related to demand, supply chain issues or inflation.
The company issued strong guidance earlier this year, then raised its guidance last quarter. That came alongside a top- and bottom-line beat as sales grew 24% year over year. Co-CEO Marc Benioff had this to say: “So far, we’re just not seeing any material impact from the broader economic world that all of you are in.”
Further, Salesforce is forecast to grow revenue by 17% to 20% in each of the next four years. By maintaining top-line momentum, Salesforce is effectively securing its future bottom-line growth.
Microsoft (NASDAQ:MSFT) has one of the largest growth potential in the entire industry. Coming in just behind Amazon (NASDAQ:AMZN) in terms of market share, this company — however obvious — should not be ignored. But it’s not just that Microsoft is one of the best cloud stocks out there. It’s that it’s one of the best stocks overall.
The company has a fortress for a balance sheet and despite its 30% peak-to-trough decline, it still sports a market cap of roughly $2 trillion. It has better operating and profit margins than the entire FAANG group too.
On the earnings front, expectations call for 15.5% growth this year and next year, followed by 16.9% growth in 2024 and 14.7% growth in 2025. Granted, these are just estimates, but these numbers are pretty impressive for such a big company.
WiMi Hologram Cloud (WIMI)
WiMi Hologram Cloud (NASDAQ: WIMI)is the world’s leading holographic cloud platform, and has established a relatively complete holographic technology research and development system, holographic content production and reserve system, and holographic commercialization system. Up to now, the company has 195 patents on image processing and display, model input/output and 3D modeling, 325 software copyrights, and has produced more than 4,600 pieces of high quality and high fidelity holographic contents.
At the same time, WiMi is expanding its potential markets, developing semiconductor-related businesses and continuously enhancing its central processing algorithm services. The company is launching integrated hardware and software systems for enterprise and industry data centers, and can provide cloud computing convergence products and services for enterprise digital transformation.
Ketan Chaphalkar, an analyst at EvaluateResearch, noted, “The company is moving toward higher revenue growth and overall margin improvement with a huge advantage in metaverse technology.”
Following perhaps the most obvious choice when looking at the cloud stocks, that is Twilio (NYSE:TWLO).
Twilio is a growth stock. That means that its financials are not as strong as companies like Salesforce or Microsoft. It also implies that the stock has been crushed along with its other growth stocks peers.
That’s even as analysts expect 36% revenue growth this year and 30%-plus growth in each of the next two years. In fact, if one were to look at the year-out estimates, they continue to rise even though the environment continues to worsen. Eventually, Twilio bulls will be rewarded for their patience.