logologologologo
  • Home
  • Business
  • Markets
  • Exchange
  • Investment
  • Personal Finance

A Bull Market Is Coming. 3 Stocks to Buy Like There’s No Tomorrow

Will 2023 bring a new bull market?

For investors, 2022 came in with a bang, but it’s set to end with a whimper.

With just two weeks left to go in the year, the S&P 500 is down 20% year to date, while the Nasdaq has lost 32%.

Investors holding out for a Santa Claus rally may have gotten their hopes dashed by the Federal Reserve last week, which raised interest rates another 50 basis points and also lifted its forecast for interest rate hikes next year, calling for rates to rise another 75 basis points, which added to fears that the economy will fall into a recession next year.

No one knows what 2023 holds for the stock market, but we do know one thing. A bull market will come eventually, just as it has after every bear market in the history of the U.S. stock market, including the Great Depression, the financial crisis of 2008 and 2009, and the coronavirus pandemic crash.

When the next bull market comes, you’ll want to have these three stocks in your portfolio.

1. Pinterest: A unique opportunity in social media

Like other social media stocks, Pinterest (PINS 0.83%) has fallen sharply over the last year as revenue growth has slowed, profits have fallen, and its user base has temporarily declined.

Those headwinds are the result of difficult comparisons with its performance in 2021, and a general slowdown in digital advertising that has weighed on peers like Alphabet, Meta Platforms, and Snap.

However, there are several reasons why Pinterest looks primed for a comeback. First, after several quarters of declines in its user base, the company returned to solid growth in the third quarter. Its user base grew in all three of its regions, up on a sequential basis from 433 million to 445 million.

Similarly, even in a challenging macro environment, Pinterest continues to grow average revenue per user (ARPU), which rose 11% overall to $1.56, and ARPU in North America, its most valuable market was up 15% to $6.13. That growth is a notable contrast from peers Meta and Snap, both of whom saw ARPU fall in the third quarter.

New CEO Bill Ready is also well versed in e-commerce, having previously run Google’s shopping and payments program, and Pinterest is fast making improvements in areas like video and ad performance tracking, making the platform more useful for users and advertisers.

Finally, Pinterest has an edge over other social media platforms because many of its users come to the site with purchase intent, making it more valuable to advertisers. The company is also solidly profitable on an adjusted basis. When the ad market bounces back, Pinterest is likely to be a big winner.

2. Okta: The leader in cloud identity

Okta (OKTA 1.51%) is another tech stock that has crumbled this year, but the sell-off represents a great buying opportunity for the independent leader in cloud identity software. Okta makes tools that allow businesses and employees to seamlessly and securely log in to the apps they need and stay connected.

It’s been a rich growth opportunity for the company thus far as revenue grew 37% in its most recent quarter, however, Okta is facing headwinds from the macroeconomic climate and unforced errors in its integration of Auth0, the customer identity software company it acquired last May.

While the company expects sales growth to decelerate, it’s also rapidly improved profitability, smashing estimates in the third quarter and showing Wall Street it has more control over its bottom line than previously thought.

Okta is also expanding its platform by going into adjacent markets like identity governance access and privileged access management, which make its addressable market now valued at $80 billion. That compares to expected revenue this year of less than $2 billion.

The software stock now trades at a price-to-sales ratio of 6, a great valuation for a company with a long growth path in front of it on the top line and rapidly improving margins on the bottom line.

3. The Trade Desk: An adtech pioneer

The Trade Desk (TTD 5.35%) is the most valuable pure-play ad tech company and a rare growth stock that also delivers strong profitability.

The Trade Desk operates a self-serve, cloud-based, demand-side platform, allowing customers to manage their ad campaigns in real time.

The product has been overwhelmingly popular as the company has had a customer retention rate of 95% or greater in every quarter over the last eight years, and has steadily grown over the last decade. Revenue was up 31% in the third quarter to $395 million, significantly outperforming its peers and digital ad platforms, and it posted an adjusted net income of $123 million, showing the scalability of its business model allows it to earn wide margins.

The Trade Desk’s Unified ID 2.0 is also shaping up to be the leading alternative to third-party cookies, which Google is planning to ban from Chrome by 2024. UID 2.0 is free, but it encourages customer loyalty and more sign-ups for its platform.

Despite The Trade Desk’s strong growth this year the stock is still down 50% due to headwinds in the ad industry. If the company can continue to grow through the potential recession, the stock is likely to explode when the economy rebounds and overall advertising demand bounces back.

Source: fool.com

Related posts

February 8, 2023

OnePlus 11 review: A back-to-basics flagship phone


Read more

Categories

  • Business
  • Content
  • Exchange
  • Inflation
  • Investment
  • Markets
  • Personal Finance
  • Technology
  • Uncategorized

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021

Recent Posts

  • OnePlus 11 review: A back-to-basics flagship phone
  • 4 Technologies That Aren’t That Big Today but Will Likely Be Massive in 20 Years
  • Google launches ChatGPT competitor in strike at Microsoft
  • Factbox-U.S. stock buybacks so far in 2023: big money, fewer companies
  • Spotify upgraded at Wells Fargo as company comes off ‘margin probation’

About Us

The Alpha Cut a Vida Street LLC Company
1404 N. Ronald Reagan Blvd.
Suite 1120
Longwood, FL 32750

Link

(843) 256-4375
https://thealphacut.com

Why Us

Terms & Privacy
Policy & Procedure
Disclaimer

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only.
Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
All data in this communication is provided for informational purposes only and is not intended for trading or investing purposes. We expressly disclaim the accuracy, adequacy, or completeness of any data and content provided by financial exchanges, individual issuers, their respective affiliates and business partners and shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining our prior written consent.
We make no express or implied warranties or representations and shall have no liability whatsoever with respect to any data contained herein. The data may not be further redistributed or used to create indices or other financial products. This report and the views expressed herein are subject to change at any time based upon market or other conditions (such as domestic and global economic trends) and are current as of the date of publication hereof. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.
We emphasize that Investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies, and can result in significant capital losses that may have a detrimental effect on the value of your investments.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth.As with any structuring of a portfolio of investments, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
The information, analysis and opinions expressed herein are for general, impersonal information only and are not intended to provide specific advice or recommendations for any individual entity.

copyright © Alpha Cut 2021. All Right Reserved
The Alpha Cut a Vida Street LLC Company