|Bid||194.61 x 1000|
|Ask||195.00 x 1100|
|Day's Range||186.26 - 202.35|
|52 Week Range||102.35 - 289.51|
|Beta (3Y Monthly)||2.71|
|PE Ratio (TTM)||93.97|
|Earnings Date||Nov 7, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||276.13|
Shares of tech companies Alibaba, JD.com, the Trade Desk, and Roku are up today. The broader indexes have also opened higher on trade talk optimism.
During Wednesday night's Lightning Round as part of the popular Mad Money program, Jim Cramer responded to a caller about The Trade Desk Inc. : "I think this is oversold. People have given up but I haven't given up," said Cramer. Let's check out the charts and indicators before we make up our minds about TTD.
When it comes to investing, everything matters. The fundamentals matter. The stock needs to be undervalued or fairly valued relative to its long-term growth prospects. The optics matter. There needs to be a reason why investors will want to buy the stock for the foreseeable future. And, yes, the technicals matter. The chart needs to support the bull thesis.In this gallery, we will focus on the last of those three characteristics. Specifically, we will be looking at five stocks that have great charts.But, we won't neglect the other two characteristics, either. In other words, we are going to look at five stocks that have great charts, and are simultaneously supported by favorable fundamentals and optics. Why? Because when great charts converge on favorable fundamentals and optics, you usually get a winning stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Momentum Stocks to Buy On the Dip Without further ado, then, let's take a look at five stocks to buy with great charts -- and strong fundamentals and optics, too. Stocks to Buy with Great Charts: Okta (OKTA)First up, we have a momentum cloud stock, Okta (NASDAQ:OKTA), which was killed amid the massive September shift from momentum stocks to cloud stocks. And its fundamentals, optics and technicals all say it should bounce back in a big way soon.Let's start with the chart. Throughout the summer of 2019, OKTA stock was forming a bearish head-and-shoulders pattern. Indeed, that head-and-shoulders pattern ended with a big plunge at the end of the summer. But, it appears that this head-and-shoulders pattern has now fully played out. That is, the stock has retraced its way all the way back to the starting point of that head-and-shoulders pattern. OKTA stock appears to be finding support there. It also should find support at the 200-day moving average, which happens to be right around the same level.The technical picture implies that the worst of the recent OKTA selloff is over, meaning the coast is clear to buy the dip.On the fundamentals side, Okta is a big growth cloud security company. It has been, still is and will remain a big growth company with big margins, supported by secular tailwinds in cloud, cybersecurity and the internet of things. Nothing about this secular growth narrative has changed over the past few weeks. As such, the fundamentals remain robust here and support further upside in OKTA stock.On the optics side, the momentum-to-value shift which materialized in September won't last forever. History says it will end, and soon. When it does, the optic backdrop will improve and provide support for a rebound in OKTA stock. General Electric (GE)Next up, we have a beaten up industrial giant, General Electric (NYSE:GE). GE's fundamentals, optics and technicals all imply it could be on the verge of a meaningful breakout.Let's start with the chart. There is one very important thing to watch here -- the 50-day moving average. Specifically, after spending several months sharply below its 50-day moving average, GE stock is on the verge of breaking above the 50-day moving average in a meaningful way. GE stock has only done this once before, back in early 2019. That breakout above the 50-day following a long stint below the 50-day led into a big, multi-month rally in GE stock. The same thing could happen this time around.On the fundamentals side, GE's depressed fundamentals are starting to improve. This breaks down into three things. First, the global economy appears to be stabilizing, and that should provide an upward lift for economically sensitive stocks like GE. Second, GE continues to simplify its operations with asset sales and business divestitures -- moves which create more visibility towards sustained profitability in the long run. Third, GE also continues to reduce its debt load, which ultimately reduces operational risk in the long run and should result in continued multiple expansion for the stock.When it comes to the optics, those look good, too. GE is a very economically sensitive stock. No one wants to buy this stock when the economy appears to be decelerating. But, signs are starting to emerge that the global economy is actually improving, and there's a fresh wave of European Central Bank and U.S. Federal Reserve stimuli on the way which should help improve things even further. As such, over the next few months, the global economic outlook should improve. * 7 Tech Stocks You Should Avoid Now In response, investors will buy into beaten up, economically sensitive stocks like GE. The Trade Desk (TTD)Much like Okta, programmatic advertising leader The Trade Desk (NASDAQ:TTD) is a momentum growth stock which: 1) was damaged meaningfully in the recent pivot out of momentum stocks, and 2) looks ready to rebound in an equally meaningful way.The chart here looks compelling. Since January 2018, TTD stock has formed a solid uptrend. Amid this uptrend, the stock has dropped into technically oversold territory (as defined by a Relative Strength Index reading below 35) only a few times. Each time, TTD stock bounced back from those oversold conditions over the subsequent few weeks to months. Right now, TTD stock finds itself in similar oversold territory. History says what comes next is a sizable rebound rally.It helps that the fundamentals for TTD stock remain very robust. This company is a leader in the field of programmatic advertising, which automates the ad transaction process using data and algorithms. This is a secular growth industry supported by the fact that all processes across the globe are becoming data-driven, automated processes. Nothing about this favorable secular growth narrative has changed recently. Indeed, the last thing we heard from the company was a double-beat-and-raise second-quarter print that showed continued robust revenue growth, margin expansion and profit growth.When it comes to the optics with TTD stock, investor demand should return soon. As mentioned with Okta stock, history says that significant momentum-to-value shifts don't last very long, and when they come to a close, they ultimately result in a big rally for momentum stocks. I don't see this time being any different. As such, current weakness in TTD stock should end with a significant rebound rally. Pinterest (PINS)Next up, we have yet another momentum growth stock, Pinterest (NYSE:PINS). PINS has all the necessary ingredients to stage a meaningful rebound here and now.The technical picture for Pinterest looks very similar to the technical picture of Okta. That is, in late summer 2019, PINS stock was forming a bearish head-and-shoulders pattern. That head-and-shoulders pattern has now fully played out. PINS stock dropped and ultimately found support right around the same level that the head-and-shoulders pattern started. From a technical perspective, it looks like the next few months in PINS stock should be defined by a rebound bid to all-time highs.On the fundamentals side of things, PINS stock remains supported by favorable growth fundamentals. Pinterest is a unique social media platform with hundreds of millions of users. Those users don't go to Pinterest for the same reasons they go to Facebook (NASDAQ:FB) or Twitter (NYSE:TWTR). They go to Pinterest for visual discovery and inspiration -- two use cases which lend themselves particularly well to ads. As such, Pinterest should have no problem over the next several years building out its ad business. Thus, PINS stock will be supported by robust revenue and profit growth -- the sum of which should keep PINS stock on a long-term winning trajectory. * 10 Stocks to Sell in Market-Cursed September On the optics side of things, PINS stock should benefit from the fact that its last earnings report was very, very good. Over the next weeks, investors will look for opportunity in the momentum rubble by identifying stocks which most recently had strong momentum. Pinterest had that. Last quarter, the numbers were so good that PINS stock rallied 20% to all-time highs. Activision Blizzard (ATVI) Last, but not least, we have video game publisher Activision Blizzard (NASDAQ:ATVI). ATVI stock seems fundamentally, technically and optically positioned for a big breakout rally over the next 12 months.Starting with the chart, we can see that ATVI stock appears to be in the first few innings of a multi-month technical breakout. Look at the moving averages in the above chart. A golden cross pattern has emerged. The 50-day moving average has poked its head above the 200-day moving average for the first time in several months. This golden cross pattern has emerged only a few times over the past decade. Each time it has emerged in this way, it preceded a multi-month breakout in ATVI stock.2020 could be a big year for Activision. Next-generation video game consoles from Sony's (NYSE:SNY) PlayStation and Microsoft's (NASDAQ:MSFT) Xbox are launching next year, marking the first console refresh cycle in seven years. More than that, these next-gen video game consoles will have cloud gaming capabilities -- yet another huge advance in the video game industry. Also, Activision's game lineup for 2020 should be stellar.On the optics side, you have a long-term winning stock that went through a rough patch in 2018-2019. Now, the stock appears to be bouncing back from that rough patch. Importantly, it's bouncing back ahead of what is shaping up to be a big 2020. That's a pretty compelling rebound story. Thus, I think buying action in ATVI stock should outweigh selling action for the foreseeable future.As of this writing, Luke Lango was long OKTA, TTD, PINS, FB and ATVI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post 5 Stocks to Buy With Great Charts appeared first on InvestorPlace.
It was a very mixed session in the stock market day. While some areas of the market did really well, other parts of the market were creamed on Monday. Broadly speaking though -- as measured by the S&P 500 -- the stock market was flat on the day.Anyone investing in small caps or high growth wouldn't agree with that statement, though.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLast week, we finally saw the SPDR S&P 500 ETF (NYSEARCA:SPY), SPDR Dow Jones Industrial Average (NYSEARCA:DIA) and PowerShares QQQ ETF (NASDAQ:QQQ) break out.The trio had been trapped in a month-long trading range that was both choppy and frustrating for investors. When they finally broke out, investors were relieved despite there still being a few concerns. Small Caps Lead, High Growth DecimatedOne issue was small caps, which were struggling. I would really like to see the iShares Russell 2000 ETF (NYSEARCA:IWM) play catch-up and push over its 50-day moving average at this point. However, Monday's 1.33% rally against a flat S&P 500 was a good start.On the flip side, the action in high-octane growth stocks was damaging. Many of these names were showing a ton of relative strength throughout 2019, with several doubling, tripling and quadrupling. They showed relative strength in May when the market was under pressure, and again in August when volatility increased.But when stocks broke out last week, they were stagnant. Now on Monday, they're getting hammered. It's one reason why observing relative strength price action is so important. * 7 Stocks to Buy In a Flat Market The Trade Desk (NASDAQ:TTD) and Twilio (NYSE:TWLO) fell more than 10% at one point, while Alteryx (NYSE:AYX) fell more than 15%. Pinterest (NYSE:PINS), Shopify (NASDAQ:SHOP), Roku (NASDAQ:ROKU) and others were also hit with a bevy of selling. Even Starbucks (NASDAQ:SBUX) and Tyson Foods (NYSE:TSN) were struggling.A number of these stocks made our Top Stock Trades list on Monday as a result of the action.Hopefully InvestorPlace readers were ready though, as we highlighted this very concern in real-time just last week. Movers in the Stock Market TodayShares of AT&T (NYSE:T) were rallying as much as 6% in pre-market trading, but ended higher by just 1.41%. Still, the rally sent shares to multi-year highs after Elliott Management took an activist stake in the company.They sent a letter to management, highlighting steps they can take to elevate the stock to $60 or more by the end of 2021. That's up more than 60% from current levels. Keep in mind, shares still yield about 5.6%. Those who have been patient in AT&T stock are now being rewarded.Shares of Fannie Mae (OTCMKTS:FNMA) rocketed on the day, climbing almost 40% after an appeals court reversed an earlier decision which backed the government taking all of its profits. Freddie Mac (OTCMKTS:FMCC) rallied a similar amount on the ruling.Facebook (NASDAQ:FB) stock initially moved lower on the day, but closed higher on Monday despite more incoming probes. Now the New York attorney general is investigating the company for antitrust concerns. Joining them will be attorney generals from seven other states as well as the District of Columbia.Facebook also has to contend with the Federal Trade Commission and U.S. Department of Justice.However, it could be worse. For instance, look at Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). It just settled one investigation with the FTC and also has the DOJ breathing down its neck. But like Facebook, it was announced on Monday that a number of state AGs would investigate the company as well.However, instead of eight states and DC, GOOGL will face 50 attorney generals. California and Alabama will not be involved, but D.C. and Puerto Rico are, bringing the total to 50.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Stock Market Today: What to Do With High-Growth Onslaught? appeared first on InvestorPlace.
It was a relatively calm day on Wall Street on Monday, with the exception of the selloff in high-growth stocks. We'll look at a few right now, as they are our top stock trades to watch. Top Stock Trades for Tomorrow 1: The Trade DeskMany of these stocks are great companies, but they have been on tremendous runs so far in 2019. The Trade Desk (NASDAQ:TTD) is one of them. However, shares fell more than 10% on Monday alone -- with no news in sight.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhen the market was breaking out of its month-long trading range last week, many of the relative growth leaders were not partaking in said upside. We flagged that at the time -- both here on InvestorPlace and on Twitter. Monday's price action doesn't come as much of a surprise to those that saw those posts. * 7 Best Stocks That Crushed It This Earnings Season In any regard, investors are trying to balance buying these for the long haul and avoid getting run over on the decline. For TTD, shares knifed right through the 38.2% retracement like it wasn't even there.I have my eye on $200 now. Not only is that a significant round number that can act as a magnet, but near it we will also find the 200-day moving average and the 50% retracement. If it fails to hold, $180 is the next target. Top Stock Trades for Tomorrow 2: NetflixAfter this one was smoked on earnings, InvestorPlace readers cleaned up nicely when Netflix (NASDAQ:NFLX) was rejected from prior range support at $340 and the 200-day moving average.Now this name has been trapped in a series of relentless selling. Shares are pushing above downtrend resistance, but not in a meaningful manner as the 20-day moving average swiftly rejects NFLX.If the 61.8% retracement holds as support, perhaps NFLX can again attempt to push above the 20-day. Above that and the 50% retracement is on the table.If the 61.8% fails as support though, NFLX will likely retest its lows near $282.79. Top Stock Trades for Tomorrow 3: TwilioTwilio (NYSE:TWLO) stock didn't even slow down as it knifed through the 200-day moving and 38.2% retracement. Like TTD, TWLO is a great company but the writing was on the wall in terms of the price action.I'm not sure if we'll get TWLO down to $100, but it might be an attractive entry point for interested bulls. Particularly with the 50% retracement near $105 and the 61.8% near $95. Top Stock Trades for Tomorrow 4: AlteryxAlteryx (NYSE:AYX) has been a monster so far in 2019. Even after Monday's 15% beating, shares are still up 102% so far for the year. Lucky for us, we named AYX one of 7 mid-cap studs to watch this year.With AYX slicing through the 50-day like a hot knife through butter though, investors need to take some precaution. Between $107 and $110 is channel support (blue line) and the 38.2% retracement.If that doesn't hold, let's see if $95 is on the table. Top Stock Trades for Tomorrow 5: Tanger Factory OutletsOne name that hasn't been doing all that well this year is Tanger Factory Outlet Centers (NYSE:SKT). This REIT has a big dividend and terribly performing stock. However, shares are quietly up eight days in a row and putting an exclamation point on Monday's rally.Shares are up about 5% and bursting through the 50-day moving average. Keep in mind, this moving average gave SKT a very hard time in July. Now above it, let's see if shares can get back to $16.50. * 7 Industrial Stocks to Buy for a Strong U.S. Economy Mainly though, I want to see the 20-day and 50-day moving averages act as support going forward.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long SKT and TTD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post 5 Top Stock Trades for Tuesday: TTD, NFLX, TWLO, AYX appeared first on InvestorPlace.
CFO of The Trade Desk Inc (30-Year Financial, Insider Trades) Paul Ross (insider trades) sold 2,682 shares of TTD on 09/03/2019 at an average price of $241.03 a share. Continue reading...
In my years of investing, I've learned that when it comes to picking high-quality stocks, everything matters. It's not just about identifying stocks with low price-to-earnings multiples, or high yields. It's not just about finding stocks that always beat Wall Street's revenue and profit expectations. Nor is it just about insider buying, or the technical indicators, or any single thing.Instead, it's about all those things. As it turns out, stock picking is a multi-dimensional analysis, and in order to be the best stock picker possible, you need to intimately understand all those dimensions.Given that, I've developed a three-pronged framework for identifying winning stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat framework is simple. First, and foremost, the stock needs to have favorable fundamentals, meaning the long-term fundamental growth prospects need to warrant upside in the stock from current levels. Second, the stock needs to have favorable optics, meaning that there needs to be a reason or set of reasons why investors will want to buy this stock both now and for the foreseeable future. Third, the stock needs to have favorable technicals, since good technicals provide psychological support for continued bullish investor sentiment.If a stock checks off all three of those boxes, I call it a "Triple Threat Stock" -- and in my experience, these Triple Threat Stocks have been big winners over the long run. * 7 Best Tech Stocks to Buy Right Now With that in mind, let's take a look at 7 of my favorite Triple Threat Stocks to buy for the long term. Shopify (SHOP)Source: BalkansCat / Shutterstock.com The Fundamentals: The fundamentals supporting e-commerce solutions provider Shopify (NYSE:SHOP) are about as good as you're going to find in the market. Shopify is powering a new era of direct decentralized commerce, enabling merchants of all shapes and sizes to successfully sell directly to their customers. This is a huge growth market, since we are migrating to a do-it-yourself economy with consumers who favor decentralized systems over centralized ones.The growth trajectory is consequently robust, with steady 50%-plus sales volume growth over the past several quarters. The long-term revenue potential is huge, as Shopify accounts for less than 2% of total e-retail sales. The long-term profit potential is also huge, because gross margins here are north of 50% and the opex rate has tremendous room to fall with scale.Net net, Shopify projects as a big revenue and profit grower for a lot longer as secular tailwinds expand the direct decentralized retail model from niche, to mainstream. All that growth firepower will inevitably push SHOP stock higher long term.The Optics: The optics supporting SHOP stock are similarly favorable across the board. For starters, SHOP stock has been working in a flat market. Since the trade war started, the stock has more than tripled, while the market has gone nowhere. Existing investors are going to what to stick with what's working. New investors are going to want to pile into what's working.Further, Shopify is a big growth stock in a super low rate environment. That's an attractive combo since low rates help support long duration assets. Even further, Shopify's growth narrative has almost nothing to do with China and the trade war. Thus, this stock is side-stepping the market's biggest risk right now.The Technicals: SHOP stock is up nearly 200% year-to-date, and the chart looks like a steady, straight-line up from ~$150 to ~$400. As far as charts go, they don't get much prettier than this one. SHOP is a prime stock to buy. Walmart (WMT)Source: Jonathan Weiss / Shutterstock.com The Fundamentals: The fundamentals underlying Walmart (NYSE:WMT) have been, still are, and will remain for the foreseeable future, rock-solid.Walmart is the world's biggest retailer. They got to this position for two reasons. One, they've dominated on price -- that is, they have always offered the lowest prices in the market, and because consumers are always attracted to low prices, consumers have consistently been attracted to Walmart's low prices. Second, they've dominated on convenience. Walmart has an extensive real estate footprint that puts Walmart's stores within reasonable driving distance of almost every U.S. consumer. Because consumers are also always attracted to high convenience, consumers have consistently been attracted to Walmart's unparalleled convenience.Over the past several decades, dominance on these two fronts has powered big comparable sales, revenue, and profit.This dynamic will continue for the foreseeable future. Walmart's prices are still the lowest in the market -- recent studies support that Walmart.com offers lower prices than even Amazon.com (NASDAQ:AMZN). Also, Walmart's convenience is only going up, as the company is rapidly expanding its e-commerce business and its omni-channel capabilities so that consumers can shop how they want and when they want.Consequently, Walmart's comps, sales, and profits will continue to march higher for the foreseeable future. As they do, WMT stock will power higher, too.The Optics: The optics supporting Walmart as one of are stocks to buy are favorable, led by three big things.First, the U.S. consumer is on fire right now, and Walmart is a U.S. consumer story. Pockets of the global economy are showing weakness. The U.S. consumer is not. So long as the U.S. consumer remains one of the few good things about the global economy, investors will pile into stocks which have big U.S. consumer exposure -- like WMT.Second, Walmart is on fire right now. Thanks to the fact that this company has figured out the digital game and is rapidly expanding its omni-channel footprint, Walmart is firing off decade-best comparable sales and traffic growth numbers. Thus, not only is Walmart exposed to one of the few pockets of the global economy that is working, but that exposure is high-quality exposure.Third, Walmart is recession-proof. Sure, a lot of investors throw that term around a lot. But, Walmart actually is recession proof. When a recession hits, consumers migrate to low-price retailers like Walmart. As such, Walmart can actually experience growth in an economic downturn. Look no further than 2007-09. While the S&P 500 collapsed 60%, WMT stock actually rose more than a percent over that same stretch. * 10 Stocks to Buy for September The Technicals: WMT stock has formed a solid uptrend over the past five years of higher lows and higher highs. That uptrend has remained in-tact in 2019. Indeed, it isn't showing any signs of breaking. As such, the technicals here point to continued secular strength. The Trade Desk (TTD)Source: Shutterstock The Fundamentals: Over at programmatic advertising leader The Trade Desk (NASDAQ:TTD), you have similar long-term growth fundamentals as at Shopify. That is, you have a hyper-growth company with a huge opportunity in front of it, which operates at sky high margins, and has visibility towards huge profits in the long run.The narrative at The Trade Desk begins and ends with automation and data. That is, automation and data are transforming work flows and processes everywhere -- making them smarter, faster, and cheaper. The Trade Desk applies automation and data to the advertising world through what is called programmatic advertising -- which is just leveraging data and machine learning to automate and optimize the way companies spend their ad dollars.Companies left and right are adopting programmatic advertising in bulk. That's why The Trade Desk has rattled off multiple consecutive quarters of 40%-plus revenue growth. These big growth quarters will stick around for a lot longer. Less than 1% of global digital-ad spend went through The Trade Desk last year, meaning this company has tons of room to expand share in a secular growth market for a lot longer.Gross margins are big, too, so as scale drives positive operating leverage over time, The Trade Desk stands to produce a ton of profits in the long run. All of those profits will add up to a TTD stock price in 5 years that is way higher than today's price tag, which is key when you're looking for stocks to buy.The Optics: The optics on TTD stock support continued strong investor demand for the foreseeable future. These favorable optics break down into two parts.First, The Trade Desk has worked in a flat market. Since the trade war started in January 2018, the major indices have gone nowhere. TTD stock has risen nearly five-fold over that same stretch. Existing investors want to stick with this beacon of strength. New investors will want to buy into it.Second, TTD stock is a big-time growth stock that derives essentially all of its value from future profits. In a low rate environment -- like the one we find ourselves in today -- those future profits have a higher present value. As such, today's environment is one wherein investors will continue to look for exposure to high-quality, long-duration assets. TTD stock is one of those assets.The Technicals: Over the past three years, TTD stock has formed a pattern. Rally big for a few months, and then consolidate around the 50-day moving average for a few months, all while maintaining a big spread over the 200-day moving average. Early 2019 was part one -- the multi-month surge. Mid-2019 has been part two -- the consolidation around the 50-day. Presumably, this ends with a repeat of part one -- another multi-month surge higher towards $300. Okta (OKTA)Source: Sundry Photography / Shutterstock.com The Fundamentals: Lather, rinse, and repeat the Shopify and Trade Desk fundamental growth narratives for the next of our Triple Threat Stocks to buy. Security giant Okta (NASDAQ:OKTA) is a big growth company with tons of room to grow, operating at sky high margins with the potential to produce enormous profits at scale.Okta is a cloud security company. But they are a unique cloud security company. They focus on what is called identity access management. That is, as opposed to outfitting an entire enterprise ecosystem with a castle of cloud security defense, Okta outfits each individual in the enterprise ecosystem with their own personalized armor of cloud security defense.This solution is optimal, mostly because overarching security systems can be restrictive and identity-based ones are flexible, and flexibility is extremely important to dynamic enterprises who often utilize many different software applications. Consequently, Okta's Identity Cloud solution has been swiftly adopted across the enterprise world, with customer and revenue growth rates at Okta consistently hovering north of 40%.There's also plenty of room to grow here. At last count, Okta had 7,000 customers. There are over 30 million enterprises in the U.S. -- all of whom could use Okta's Identity Cloud. There are several hundred million enterprises worldwide. Thus, this growth narrative is still in its first few innings.On top of it all, Okta runs at 70%-plus gross margins, so the company has visible runway to producing huge profits at scale. Over the course of the next several years, as Okta's profits do run significantly higher, OKTA stock will run significantly higher, too.The Optics: There are three big drivers of the favorable optics supporting OKTA stock at the current moment.The first two we've already discussed in this gallery. First, the stock has been working in a flat market -- up 300%-plus since the trade war started -- and investors will want to stick with what has been working. Second, this is a big time growth stock supported by exceptionally low rates.The third point is a bit more unique. Okta is a cloud company. The cloud space is on fire right now. It also has minimal exposure to China and the trade war. Indeed, an economic downturn could actually help the cloud industry by accelerating the on-premise to cloud shift. After all, cloud is supposed to cheaper, and cheaper wins out when money becomes tight. * 4 Triggers That Could Kick Gold Into High Gear The Technicals: OKTA stock has been on fire over the past year. But every once in a while, it does go through rough patches. In those rough patches, the stock tends to consolidate around the 50-day moving average before sprinting higher -- see late 2018 and February/March 2019. It appears OKTA is going through a similar consolidation right now. History says this consolidation around the 50-day will end in a big move higher. Facebook (FB)Source: Ink Drop / Shutterstock.com The Fundamentals: In 2018, the core growth fundamentals underlying Facebook (NASDAQ:FB) looked shaky. But now that the company has put those issues behind it, the long term growth fundamentals for this stock to buy look as strong ever.In a nutshell, Facebook's owns four of the world's favorite and most-used digital properties -- Facebook, Instagram, Messenger, and WhatsApp. For most consumers, these applications are more than just fun apps. They are utilities digital consumers use everyday to keep in touch with friends, communicate with others, and stay up-to-date with current events. As such, consumers are hooked to these platforms and they aren't leaving anytime soon. If the 2018 Cambridge Analytica scandal didn't get people quit (and it didn't), I don't know what will.So long as users stay in the Facebook ecosystem, ad dollars from across the world will continue to flood into the ecosystem. Facebook is also pushing the envelope on commerce. Considering the ecosystem is essentially the world's largest marketplace with 2.7 billion active potential buyers, these commerce growth initiatives could produce big results.Bottom line: ad revenue growth rates will remain big for the foreseeable future, and new e-commerce revenue will supercharge the overall top-line growth trajectory. Gross margins across the board will remain healthy. The opex rate will fall as big data security investments phase out. Net profits margins will move higher. So will profits.As profits move higher, FB stock will, too. That's because, at 23-times forward earnings, this stock is still cheap relative to its long-term growth potential.The Optics: The optics here are better than they've been in a long time. Facebook is shaking off the rust from an ugly 2018. In so doing, investors are starting to see that the company really wasn't damaged -- at all -- during one of the most controversial issues in corporate America in the past decade. Investors are therefore starting to realize just how sticky the Facebook ecosystem is, and how strong and healthy the long-term growth prospects are for Facebook.As they realize this, they want back in. That's why we've seen a big YTD rally in FB stock. But the stock is still well off its 2018 highs. Thus, investors will keep wanting "in" until the stock breaks through those highs. That gives the stock plenty of runway to keep moving higher.The Technicals: FB stock has formed a clean uptrend in 2019 of distinct higher highs and higher lows. The stock recently tested and held the support line in this uptrend. It is now bouncing off that support line -- a strong sign that the uptrend is in-tact. If so, the technicals here reasonably point towards a rally to a new higher high, or somewhere above $210. Lululemon (LULU)Source: Richard Frazier / Shutterstock.com The Fundamentals: The fundamentals for Lululemon (NASDAQ:LULU) are exceptionally favorable in the long run for two big reasons. First, the athletic apparel market is on fire and projects to remain on fire. Second, Lululemon is the hottest brand in that athletic apparel market and should remain so for the foreseeable future.On the first point, the athletic apparel market is the shining star of the retail world. Retail sales have been moving higher at a steady pace, thanks to healthy labor conditions. But athletic apparel sales have been outpacing the crowd. This is due to secular trends, such as eating right, being fit, and staying healthy, the sum of which have pushed consumers to workout more and live healthier, more active lifestyles. A big part of that is buying the right clothes to fit that lifestyle -- hence, the big surge in athletic apparel spend over the past few years.On the second point, Lululemon is the hottest and most relevant brand in the athletic apparel space. Thanks to genius marketing and merchandising, Lululemon has struck the sweet spot of controlling high prices and still driving big demand, all while maximizing brand equity. That is to say, Lululemon's clothes are expensive enough to where they are a status symbol, and yet aren't expensive enough to where they eliminate mass market demand.In striking this sweet spot, Lululemon is driving mass market demand at favorable price points. The result? Big comparable sales growth, big margin expansion, and even bigger profit growth.This dynamic projects to persist for the foreseeable future. Why? Because Lululemon is still small. They did just $3.5 billion sales over the past 12 months. Nike (NYSE:NKE) did about $40 billion. Thus, Lululemon has plenty of runway to keep growing at a robust rate for a lot longer.The Optics: The optics here are simple and favorable. The U.S. consumer -- and to a lesser extent, the global consumer -- is working right now. Many other parts of the global economy aren't working. Thus, investors today are craving consumer exposure.The highest quality form of consumer exposure is exposure to the athletic apparel industry since secular tailwinds have and will continue to promote above-trend growth across this whole space. In that athletic apparel industry, the company that stands out from the pack as the fastest grower with the most long-term potential is Lululemon.For the foreseeable future, investors will follow that same logic train to arrive at the same conclusion. In today's environment, buy LULU stock. * 5 Retail Stocks That Belong on Your Shopping List Today The Technicals: As is the case with many other stocks on this list, LULU stock has found tremendous support over the past year in its 50-day moving average. See late 2018, late March 2019, and early June 2019. Today belongs in that list, too. LULU stock is consolidating around its 50-day moving average amid trade war turbulence. The implication is that once this trade war turbulence passes, LULU stock will fly higher. Chegg (CHGG)Source: Casimiro PT / Shutterstock.com The Fundamentals: High-flying digital-education company Chegg (NASDAQ:CHGG) is yet another growth stock supported by very favorable long-term growth fundamentals. Specifically, this is a big growth company, in a secular growth market, with very little competition, which runs at huge margins, with a ton of runway to keep growing, and the potential to produce huge profits at scale.Long story short, Chegg is the digital education company that high school and college students across America have needed for the past decade. Everything high school and college students interact with these days is all digital. The one big exception? School. The academic world has been slower to pivot to the digital revolution. Chegg is changing that. They have made a digital education companion built for students in the 21st Century, complete with digital on-demand tutoring services, e-textbooks, tutorial videos, solution manuals, writing help, citation makers, so on and so forth.Chegg bundles all these services into a subscription offering, and sells that to students across America. Demand has been robust thus far -- services revenue growth has exceeded 30% in each of the past several years. The best part? Chegg is only getting started. They have about 3 million subscribers on their connected learning platform. There are 36 million high school and college students in the U.S. alone -- and far, far more globally. Thus, Chegg is penetrating a very small portion of its addressable market.Over the next several years, then, Chegg will rattle off several more 20%-plus and 30%-plus revenue growth quarters. All those big growth quarters will be accompanied by big profit growth, too, since the Services business runs at ~80% gross margins.Fast forward 5 years. Chegg will have a lot more subscribers, a lot more revenues, and a lot more profits. CHGG stock price should be significantly higher, too.The Optics: With CHGG stock, there are three components to the favorable optics underlying the stock.First, Chegg has been a shining star in a flat market. It's up 130% since the trade war began. Investors will want to stick with this strength so long as the trade war hangs around.Second, Chegg is a big growth stock with a big valuation. The stock derives a ton of its value from future profits. As mentioned earlier, those profits get a boost when rates are low. Thus, today's low rate environment is favorable for CHGG stock.Third, this is a U.S.-only growth story. While the global economy may be slipping, the U.S. economy appears to be doing just fine. Further, this is a U.S. student growth story. U.S. students will likely continue to pay for educational services regardless of the economic backdrop.The Technicals: In 2019, CHGG stock has formed a clean uptrend of higher highs and higher lows. The stock is currently testing the support line of that uptrend. Will it hold? Given the favorable fundamentals and optics, probably. If it does, the technicals would imply a rally in CHGG stock towards a new higher high, or somewhere north of $48.As of this writing, Luke Lango was long SHOP, WMT, TTD, OKTA, FB, LULU, NKE, and CHGG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post 7 Triple Threat Growth Stocks to Buy for the Long Term appeared first on InvestorPlace.
In late January 2018, U.S. President Donald Trump announced tariffs on solar panels and washing machines from China, officially starting the U.S.-China trade war. That was 19 months ago. Over the subsequent 19 months, the stock market has gone nowhere. The S&P 500 peaked at 2,870 in late January 2018. Nineteen months later, at the end of August 2019, the S&P 500 is at 2,870.That isn't a coincidence. The U.S.-China trade war has created a flat market. Why? Because no one is sure exactly how this volatile trade war will play out, and how it does play out will have profound implications on the global economy. Either the U.S. and China come to a trade resolution, the trade war ends and global economic activity ramps back up (and stocks fly higher), or they don't, the trade war drags on, and corporate uncertainty drags the global economy into a recession (and stocks plunge).As such, until investors have clarity as to which way the trade war will swing, the stock market will likely remain flat. At the current moment, the most likely scenario is for trade war uncertainty to persist, and for the stock market to remain stuck in neutral.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHow do investors make money in a flat market? It's pretty simple. Look for three things.One, look for stocks that have been working in this flat market. Two, look for stocks with minimal exposure to the market's big headwind, which today is the trade war. Three, look for stocks with plenty of long-term growth potential -- enough long-term growth potential that investors are willing to ignore near-term noise for the promise of long-term gain once the noise passes. * 7 Best Fidelity Funds for 2019 With that in mind, let's take a look at a list of seven stocks to buy in this flat market. Stocks to Buy in a Flat Market: Shopify (SHOP)Source: BalkansCat / Shutterstock.com % Gain Over Last 19 Months: 215%Exposure to China: MinimalRevenue CAGR Estimate over Next Two Years (from YCharts): 35%Up first, we have one of the market's hottest socks, e-commerce solutions provider Shopify (NYSE:SHOP).SHOP stock checks off all the boxes you'd want it to check off in a flat market. The stock has more than tripled since the trade war started, so clearly the stock is working. It's working because Shopify has very little exposure to China, so the growth trajectory has remained robust despite escalating trade tensions (Shopify's revenue growth rates have remained in excess of 45% in each of the past several quarters). Further, Shopify controls less than 2% of global retail sales, and given current consumer trends promoting do-it-yourself mentalities and economic decentralization, it's easy to see Shopify running up toward 5-10% share in the long run.That means that this growth narrative is just getting started. That's why analysts see Shopify growing revenues at a 35% compounded annual growth rate over the next two years.In other words, with Shopify, you have a big growth stock that has been on fire over the past 19 months, has minimal exposure to the U.S.-China trade war and which has tons of long-term growth potential. That's a winning combination in a flat market. Roku (ROKU)Source: Michael Vi / Shutterstock.com % Gain Over Last 19 Months: 240%Exposure to China: MinimalRevenue CAGR Estimate over Next Two Years (from YCharts): 33%Shopify stock has been red hot over the past 19 months, but Roku (NASDAQ:ROKU) stock has been even hotter.Roku stock is up 240% since the trade war started, mostly because this company is supported by secular growth tailwinds, which have remained vigorous despite escalating trade tensions. That is, consumers in the U.S. are still shifting in bulk from linear to internet TV. At the same time, media companies everywhere are still launching multiple streaming services. Thus, both supply and demand in the streaming TV market are still rapidly rising, meaning that there remains robust demand for a streaming service aggregator like Roku to connect all the demand in the streaming TV world to all the supply, in a seamless, friction-less and low-cost manner.Consequently, Roku has fired off huge user engagement and revenue growth rates over the past several quarters. As it has, ROKU stock has popped.Meanwhile, Roku has very little exposure to China, with the only exposure really being that they manufacture their streaming devices in China. But, the hardware part of this business is largely irrelevant to the software side, so hardware manufacturing exposure to China is a null point in the big picture. Further, Roku only has 30 million active streamers. There are over a billion internet households in the world, meaning that Roku is still a long runway ahead of it for future growth -- hence the 30%-plus revenue CAGR projected over the next two years. * The 10 Reasons to Buy Alibaba Stock Net net, Roku -- much like Shopify -- has been red hot during the trade war, has minimal exposure to China, and projects as a big grower for a lot longer. Again, that's a winning combination, which should continue to produce gains in a flat market. The Trade Desk (TTD)Source: Shutterstock % Gain Over Last 19 Months: 380%Exposure to China: MinimalRevenue CAGR Estimate over Next Two Years (from YCharts): 28%Up nearly 400% over the past 19 months, programmatic advertising leader The Trade Desk (NASDAQ:TTD) checks off all the boxes you'd want checked off for a winning stock in a flat market.First, TTD has risen nearly five-fold over since early 2018. That's a huge gain. Clearly, whatever this company is doing, it's working.Second, what The Trade Desk is doing -- providing programmatic advertising solutions to automate and optimize the ad spend process by leveraging data and machine learning -- is revolutionary. Indeed, it's already disrupting the entire ad industry, as companies left and right are adopting TTD's automated ad spend solutions. Still, the ~$2.4 billion of ad spend that flowed through TTD's platform in 2018 amounted to less than 1% of total digital ad spend globally. Thus, the runway for growth here is very long and very big.Third, TTD has minimal exposure to China. International gross billings amounted to just 15% of total gross billings in 2018. While that number will grow over time -- and while China could one day be a huge market for TTD -- The Trade Desk presently lacks meaningful exposure to China, meaning that weakness in China won't show up in TTD's numbers.Overall, then, TTD stock is a stock that has outperformed big in this flat market, has big growth potential in the long run, and lacks meaningful exposure to China -- a trio of winning features that should keep TTD stock on an uptrend in this flat market. Chegg (CHGG)Source: Casimiro PT / Shutterstock.com % Gain Over Last 19 Months: 130%Exposure to China: NoneRevenue CAGR Estimate over Next Two Years (from YCharts): 22%Digital education leader Chegg (NASDAQ:CHGG) has been less hot compared to many of the other stocks on this list, but it still checks off all the boxes of a winning stock in a flat market.First, CHGG stock is up big since the trade war started, more than doubling over that stretch as the company has powered consistently favorable results that comprise big subscriber, revenue and profit growth.Second, CHGG stock lacks trade war exposure. This is a U.S. company, which services U.S. high school and college students. The U.S.-China trade war has zero impact on those students, or their willingness to spend on Chegg's digital education service. Thus, it's fair to say that Chegg has zero trade war exposure.Third, CHGG stock is far from being done growing. The platform has 3.1 million subscribers. There are 36 million high school and college students in America. That means Chegg is at roughly 8% market penetration. Further, Chegg has very little competition in that market, and is supported by secular demographic trends such as the fact that most Generation Z students prefer to learn online. As such, all signs point to the fact that Chegg is in the first few inning of a long-term growth narrative that will result in 20%-plus profit growth for a lot longer. * 10 Mid-Cap Stocks to Buy All in all, CHGG stock -- like all the other stocks on this list -- has all the attributes of a winning stock in a flat market. As such, so long as the market remains flat due to trade war concerns, Chegg stock is a good place to hangout. Okta (OKTA)Source: Sundry Photography / Shutterstock.com % Gain Over Last 19 Months: 335%Exposure to China: MinimalRevenue CAGR Estimate over Next Two Years (from YCharts): 31%One of the market's favorite growth stocks over the past 19 months -- cloud identity management company Okta (NASDAQ:OKTA), up more than 300% since the trade war started -- has turned into a market favorite for good reason.First, Okta's secular growth narrative is very promising. Okta's Identity Cloud is a unique identity-focused approach to cloud security, wherein Okta outfits each employee in an enterprise with their own "identity armor" as opposed to outfitting the ecosystem with a "security castle". The logic is that if everyone in an ecosystem has armor, there's no need to build a castle around the ecosystem -- everyone is safe. And, without a castle, individuals are unrestricted and can move freely -- this enhanced flexibility is increasingly important in enterprise ecosystems with multiple software applications.Consequently, enterprises have been quick to adopt Okta's Identity Cloud. But, Okta is still a small company, with revenues projected at just $550 million this year. Global cybersecurity spend amounts to over $100 billion every single year. Thus, Okta has plenty of room to grow its share in the cybersecurity market in the long run.Second, Okta's secular growth narrative has very little do with China. At least for now. Less than 20% of revenue comes from outside of America, and of that 20%, China is such a small part that it wasn't mentioned once in either the company's most recent annual report or most recent conference call. Further, even if the U.S.-China trade war dampens global corporate investment, one thing corporations are not likely to cut back on is security spend.Consequently, with OKTA stock, you have a red hot stock that is supported by robust secular growth tailwinds which are largely unaffected by the U.S.-China trade war. That's a winning combination in today's flat market. Twitter (TWTR)Source: Worawee Meepian / Shutterstock.com % Gain Over Last 19 Months: 75%Exposure to China: NoneRevenue CAGR Estimate over Next Two Years (from YCharts): 15%Another high-growth U.S. technology company that looks like a good buy in a trade war afflicted market is Twitter (NYSE:TWTR).First, and foremost, Twitter has no China exposure. The Twitter platform is blocked in China, and all of the platform's users are from outside of China. Thus, U.S.-China trade war turbulence shouldn't have any impact on the user base, and it likely won't have much impact on the ad business until business uncertainty escalates to the point where they start cutting ad spend -- and we appear to be far from that point today.Second, Twitter has been on fire over the past near two years. The company's revenue growth rates have come surging back, and have remained vigorous as the company has figured out how to optimally advertise on its platform. Meanwhile, user growth trends have been stable, and margins have tracked higher alongside big revenue growth, thereby powering huge profit growth. Alongside this big profit growth, TWTR stock has flown higher -- to the tune of a 75% gain since the trade war started in early 2018.Third, Twitter still has a lot of growth firepower left. The company is a 1% (and expanding) share player in a secular growth global digital ad market projected to grow at a double-digit rate for the foreseeable future. That combination of share expansion and double-digit market growth implies that mid-teens revenue growth is achievable over the next several years, which is what analysts are modeling for. On top of that, operating margins are just 14%, versus over 30% at Facebook (NASDAQ:FB), so Twitter has plenty of runway to drive further positive operating leverage in the long run. * 10 Mid-Cap Stocks to Buy Big picture, Twitter has very minimal exposure to the trade war, has been on fire lately in terms of growth and share price appreciation, and has plenty of room to keep growing at a big pace for a lot longer. Those are the exact features which investors will continue to be attracted to in a flat market. Twilio (TWLO)Source: rafapress / Shutterstock.com % Gain Over Last 19 Months: 400%Revenue Exposure to China: MinimalRevenue CAGR Estimate over Next Two Years (from YCharts): 30%Last, but not least, on this list of hot stocks to buy in a flat market is cloud communications leader Twilio (NASDAQ:TWLO).As with all the other stocks on this list, Twilio checks off all the right boxes. Red hot stock? Check. TWLO stock is up 400% since the trade war begun, thanks to a series of consecutive beat-and-raise reports. Minimal exposure to China? Check. Only a quarter of revenue comes from outside of the U.S.Big growth potential? Check. Every company is integrating cloud communications into their customer experiences, and as they do, Twilio's revenue growth trajectory will remain robust for the next several years - hence analysts expecting a 30% revenue CAGR here over the next two years.Net net, Twilio is a winning stock in a flat market. It projects to remain so for the foreseeable future, too.As of this writing, Luke Lango was long SHOP, ROKU, TTD, CHGG and OKTA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post 7 Stocks to Buy In a Flat Market appeared first on InvestorPlace.
President and CEO of The Trade Desk Inc (30-Year Financial, Insider Trades) Jeffrey Terry Green (insider trades) sold 288,000 shares of TTD on 08/23/2019 at an average price of $258.27 a share. Continue reading...