108.99 +1.24 (1.15%)
After hours: 6:36PM EDT
|Bid||107.81 x 1400|
|Ask||107.82 x 1100|
|Day's Range||107.00 - 114.09|
|52 Week Range||65.17 - 149.80|
|Beta (3Y Monthly)||1.01|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 15, 2020 - Jan 20, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||149.44|
Which stocks are ready to take off in 2020? This is the question growth investors constantly have on their minds. However, finding these stocks that are primed for explosive growth is no simple task.That’s where TipRanks comes in. Using the platform’s Stock Screener tool, I got access to market data that let me zero in on 3 stocks with strong long-term growth narratives.I’m putting these names at the top of my buy list based on their upside potential from the current share price. We’re talking 20% or more here. Not to mention each boasts a “Strong Buy” consensus rating, which is generated from all ratings assigned by Wall Street analysts over the last three months. Here are the 3 monster growth stocks poised to soar in 2020: L3Harris Technologies (LHX)L3Harris is a technology, defense and information services provider that designs C6ISR systems and products, wireless equipment and tactical radios. The company, which is a product of the Harris Corporation and L3 Technologies merger this past June, looks poised to deliver gains in 2020 on top of the 47% year-to-date growth it has already achieved.LHX has the advantage over other defense companies in that the merger has led to several synergies. For example, the combination of antennas from L3 and combined processing from Harris for avionics applications and the integration of Harris’ payloads on L3’s airborne platforms is expected to lead to an increase in revenue generation.4-star Morgan Stanley analyst Rajeev Lalwani also sees possible wins from the company's tactical radios that include Manpack, its electronics for F-35 and its electronic warfare for F-16 and F-18. All of this lends the analyst to his conclusion that LHX has “positioned itself as one of the better margin narratives in the industry”.Lalwani rates LHX stock a "buy" along with $259 price target. If everything goes as planned, LHX will soar about 30% over the next 12 months. (To watch Lalwani's track record, click here)“Given above-average potential around sales growth, margin expansion, FCF generation, and capital returns, alongside a leadership team that has previously executed, we see no reason why the legacy HRS premium valuation should not be retained has previously executed, we see no reason why the legacy HRS premium valuation should not be retained,” Lalwani added.The rest of the Street takes a similar approach when it comes to LHX. The defense stock sports a ‘Strong Buy’ analyst consensus and $238 average price target, indicating 20% upside potential. (See L3Harris stock analysis on TipRanks) Facebook (FB)Facebook has been a tear this year — with shares soaring 42% — and analysts say the gains may not be done yet.Ahead of its upcoming Q3 earnings release, the Street is standing firmly in Facebook’s corner with both Barclays and Deutsche Bank recently publishing bullish calls.Based on each firm’s channel checks, demand for Facebook ads remains healthy. According to Deutsche Bank’s Lloyd Walmsley, data indicates that there wasn’t any ad spend deceleration from the second quarter and that same client spending improved for FB.Adding to the good news, Walmsley sees gains in store thanks to Instagram Checkout as well as the company’s focus on monetizing Instagram influencers. Instagram Checkout lets users easily buy products they discover on the social media platform. Its growing number of partners and the addition of new features like alerts is expected to contribute to impressive top-line results in 2020.Walmsley rates FB stock a Buy along with $230 price target, which implies about 23% upside from current levels. (To watch Walmsley's track record, click here)Similarly, Barclays’ Ross Sandler likes what he’s seeing. “We get the sense that Facebook is starting to come out of the privacy and regulatory fog it has been in the past two years, and get back to a stronger innovation cycle. Management likely paints a scenario of steady deceleration and heavy investment for 2020, but we think Facebook may be the only mega-cap to see margin expansion and rapidly accelerating EPS growth next year,” the analyst explained.As a result, the 5 star analyst reiterated his Buy rating and $240 price target. He is confident in FB’s ability to surge 29% over the next twelve months. (To watch Sandler’s track record, click here)Overall, Wall Street is clearly bullish on FB. With 7 Buy ratings received from top analysts in just the last 25 days, it’s no wonder the stock has a ‘Strong Buy’ analyst consensus. In general, analysts see 28% upside potential for FB based on its $237 average price target. (See Facebook stock analysis on TipRanks) Atlassian (TEAM)Despite some recent shakiness, Atlassian stock is up over 30% year-to-date, and several Wall Street analysts believe it remains one of the strongest names in the software space.According to 5-star SunTrust analyst Joel Fishbein, the force behind popular software products like JIRA and Service Desk presents investors with an exciting growth opportunity thanks to upcoming catalysts. Specifically, TEAM’s partnership with Okta (OKTA) could drive significant growth. The collaboration will see Okta's authentication technology integrated into Atlassian's cloud products, allowing IT admins to automate provisioning. The analyst notes that this partnership as well as the enhancement of its cloud products through its Code Barrel acquisition could result in annual contract value (ACV) expansion.Fishbein believes that these positive catalysts and its solid past performance make it a stand-out. On October 17, TEAM reported that during its fiscal first quarter, it saw revenue gain 36% year-over-year and added more than 7,000 new net customers.“Atlassian’s low touch sales and marketing, viral product adoption, focus on R&D and product innovation, and highly profitable model sets them apart in a crowded field,” the top analyst commented. This prompted him to rate the stock a Buy along with $162 price target, which implies about 40% upside potential. (To watch Fishbein’s track record, click here)The rest of the Street echoes the analyst’s sentiment. 8 Buy ratings and 2 Holds received in the last three months add up to a ‘Strong Buy’ analyst consensus. Additionally, its $153 average price target puts the upside potential at 31%. (See Atlassian stock analysis on TipRanks)
Cloud security company Okta (NASDAQ:OKTA) had a tremendous couple of years. Since trading at just $22.60 in early 2017, it quickly became a crowd favorite, soaring as high as $141.85. Since then, OKTA has crashed 34% off those highs. However, the plunge in OKTA stock has created a long-term buying opportunity.Source: Sundry Photography / Shutterstock.com A part of this opportunity comes from the fact that the company has disrupted the cloud-based security market, using a unique identity-based approach to security.For example, its Identity Platform assists companies of all sizes with tracking how their employees access and use cloud-based applications from anywhere in the world. While that may not seem important, consider this: Up to 81% of all data breaches have been caused by weak and even reused passwords, according to Verizon's (NYSE:VZ) 2017 Data Breach Investigations Report.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat can put an entire organization at risk, and that's where Okta comes into play. Okta Stock Is a Game-ChangerWith its cybersecurity tools, Okta tapped into a sweet spot of a market expected to grow 13% per year to $23.4 billion by 2025, according to Zion Market Research."The rising momentum of web-based applications and remote working has led the users to stay connected with organizational resources without putting security at risk. Moreover, organizations are hosting applications on the cloud, making it extremely important to manage their authentication and authorization for various applications and organizational data, thereby driving the identity and access management market," Zion notes. * 10 Stocks to Sell Before December's Meltdown Thanks to Okta's unique approach to protecting cloud security, it will benefit from that significantly. Its Identity Cloud Platform, for example allows people to securely access a network through a multi-factor authentication and sign-in security process. That alone can stop unauthorized visits. Then, once a user has been verified, they can access apps they've been granted access to, including cloud-based applications.The company also launched SecurityInsights, which provides companies with personalized security detection and solution capability. This allows users to report suspicious activity, helping companies take quick action against potential cyberattacks.Okta also partnered with software company Atlassian (NASDAQ:TEAM). Companies can now integrate Okta's authentication technology into Atlassian cloud products, giving users secure access in a safer online environment. Okta Fundamentals Are ImprovingGranted, OKTA stock did drop 34% from September. However, the pullback is temporary.For one, the company remains in net loss territory. As Demitrios Kalogeropoulos pointed out in his OKTA earnings breakdown for the Motley Fool, this net loss comes even after the company increased its cash burn to 1% of revenue from 6% of revenue year-over-year.With that, and a new private offering of $1 billion worth of convertible debt notes, nervous investors sent the stock lower.However, I'm not greatly concerned by that, and see further upside in the stock, especially with earnings. In fact, in recent months, "[t]he company reported sales of $141 million, representing 49% growth year over year."As Kalogeropoulos notes, that was also well above company predictions for $131 million in sales. Meanwhile, subscription revenue jumped 51% to $132.5 million. Okta also added about 450 customers, growing its total customer base to more than 7,000, which includes some of the world's largest companies.Going forward, Okta raised its outlook for the second straight quarter, "targeting fiscal-year sales of between $560 million and $563 million." That's up from expectations of "between $543 million and $548 million" from May 2019. It's also up from the $530 million to $535 million forecast set at the start of the year. The only issue is a stable profit. "Non-GAAP net losses are on track to land at between $0.44 and $0.42 per share this year, compared with $0.32 per share last year," Kalogeropoulos writes. * 7 Software Stocks to Buy for Growth The Bottom Line on Okta Inc StockWhile I'm not happy seeing losses push higher, I'm confident in the company's longer-term outlook with explosive earnings and forecasts. Given its exposure to a growing cybersecurity market, and big demand from global businesses, I'm also not concerned about its growth.Long-term, OKTA stock is a winner that hit a temporary rough patch. I don't believe it's anything to be concerned with. Instead, we should focus on the long-term growth story here. With sizable growth prospects, it's tough to argue for further downside.With patience, I expect Okta Inc stock to resume its powerful uptrend, especially since cybersecurity issues show no signs of cooling.As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post The Correction Is a Solid Opportunity to Buy Okta Stock appeared first on InvestorPlace.
Technology stocks led losses Friday as indexes accelerated their declines at midday and Dow components Boeing and Johnson & Johnson sold off on bad news.
(Bloomberg) -- Software companies fell on Friday, extending recent losses after results from Atlassian Corp. topped analyst forecasts yet failed to provide enough upside to assuage concerns over the group’s valuation.Atlassian shares dropped as much as 11% to their lowest level since May. The stock was on track for its third straight decline, as was Veeva Systems Inc., off 5.4%, and ServiceNow Inc., down 3.8%, which reports its own results next week. Coupa Software Inc. sank 8.4% in its fourth straight drop, a period over which it has shed more than 20% of its valuation. Twilio Inc. was down 4.5%. Alteryx Inc. was down 7.2% and Crowdstrike Holdings Inc. dropped 7.3%, heading for the eighth decline in the past nine sessions.A basket of high-multiple software stocks tracked by Goldman Sachs fell 5.7% in its fifth straight decline, hitting its lowest since March, while the Russell Midcap Technology Growth Index was down 2.2%.“When investors have lost conviction, it usually means the best strategy is to stay conservative until the coast is at least somewhat clear,” wrote Richard Davis, an analyst at Canaccord Genuity. “We are in that time in the cycle.”Davis has a buy rating on Atlassian, writing that it “fits the description of a safe harbor company.” However, he said the stock has a “high-ish valuation” and suggested that multiples could be hard to justify. “In this macro environment,” he wrote, “if anyone expected an over-sized guide up, they haven’t been paying attention.”Recent weakness in the sector included both Workday Inc. and Zoom Video Communications Inc. tumbling in the wake of their respective investor events, which underlined growth concerns.Atlassian’s results included a raised full-year revenue forecast, and Cowen wrote that this could ease broader concerns over the sector.This “was one of the more anticipated prints in software as a result of emerging macro concerns in the space and it being one of the first to report,” analyst J. Derrick Wood wrote. The “solid numbers & outlook, along with constructive commentary on stable demand conditions, should give investors greater comfort in the potential for stability in software spending.”To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jim SilverFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
KeyBanc Capital Markets analyst Alex Kurtz maintained an Overweight rating on Atlassian with a $150 price target. Mizuho Securities analyst Gregg Moskowitz reiterated a Buy rating and $152 price target.
Futures: The stock market rally has made impressive gains, but can the indexes hit all-time highs? Atlassian and Intuitive Surgical were key earnings movers late.
Atlassian earnings and revenue topped fiscal Q1 estimates on Thursday while guidance edged by Wall Street targets. Atlassian stock initially fell on the news but then reversed.
Atlassian Corporation PLC (TEAM) delivered earnings and revenue surprises of 16.67% and 3.40%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Atlassian Corp. shares declined in the extended session Thursday even after the enterprise cloud-software company posted results and an outlook slightly above Wall Street estimates. Atlassian shares fell 3.3% after hours, following a 1.3% decline in the regular session to close at $122.64. The company reported fiscal first-quarter net income of $69.3 million, or 28 cents a share, compared with a loss of $242.4 million, or $1.03 a share, in the year-ago period. Revenue rose to $363.4 million from $267.3 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 24 cents on revenue of $351.8 million. Atlassian expects adjusted fiscal second-quarter earnings of about 27 cents a share on revenue of $386 million to $390 million, while analysts had forecast 26 cents a share on revenue of $381.5 million. Atlassian also announced it acquired automation company Code Barrel for an undisclosed amount.
Atlassian Corporation PLC (NASDAQ: TEAM) shares are falling after issuing weak 2020 earnings guidance. The company issued strong second-quarter earnings and sales guidance, but 2020 earnings guidance was short of consensus estimates. "We're out of the blocks in good form in fiscal 2020," said Mike Cannon-Brookes, Atlassian's co-founder and co-CEO.
Software stocks have seen an average pullback of 20% from their 52-week highs, as rich valuations and high ownership interest made them susceptible to macro volatility, according to Morgan Stanley. Notwithstanding ...
Don't be caught off-guard: Atlassian Corporation (NASDAQ: TEAM ) releases its next round of earnings this Thursday, October 17. Want to skip the homework and get all the facts in one place? We thought ...
Workday Inc. shares are off more than 11% in Wednesday morning trading and pacing the declining software sector after the company held its user conference and analyst day. Several analysts flagged the company's commentary on its human-capital management product, which Workday expects to end the year with 20% growth, marking a slowdown. "Financials will need to continue to grow at healthy rates to offset this," wrote Jefferies analyst Brent Thill, though he said the attachment rate of financials to the core product is relatively low, suggesting opportunity. While Workday also announced some new products, Macquarie analyst Sarah Hindlian questioned the revenue potential for some of them. "For example, blockchain-enabled Workday Credentials allows verification of credentials such as employment and educational history," she wrote. "We think this is likely a limited market opportunity." Another issue for Workday is that its chief executive commented that the company has "definitely seen some delays" in deal activity, but Workday doesn't expect these to impact the business or result in cancellations. Other software stocks are getting hit in Wednesday trading as well, including Slack Technologies Inc. , which was the subject of a price-target cut at Morgan Stanley, and Adobe Systems Inc. , which received a Citi Research downgrade. Shares of Okta Inc. , Splunk Inc. , Zoom Video Communications Inc. , and Atlassian Corp. PLC are also down. The iShares Expanded Tech-Software ETF is off 2.3%, while the S&P 500 has lost 0.1%.
ServiceNow's ties to digital transformation projects stands out heading into the third quarter earnings period as investors brace for more volatility in software stocks, says one analyst.
Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to […]
Okta rolled out a slate of new cybersecurity, access management and authentication tools with major enterprises in mind. CEO Todd McKinnon talks to TheStreet about why Okta's laser-focused on the largest organizations in the world.
Atlassian Corporation PLC (TEAM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Atlassian shares failed to break out from trendline resistance following a broad price hike across its products, but analysts remain confident.
Slack , Atlassian , and Microsoft Teams. The big question: Is there room for all three in the workplace communication sector? Short answer: Yes. Longer answer: It's complicated. Atlassian has somewhat of a first-mover advantage.
Four top software stocks on seasoned hedge fund manager Jim Roppel's watchlist include Atlassian stock, Okta stock, ServiceNow stock and DocuSign stock.