The profit season of the American technology sector will be shifted into a higher gear in the coming weeks. Although most attention will be given to names such as Facebook, Apple, Amazon, Netflix, Google and Microsoft, investors would do well to focus their attention on other high-flying companies that are ready to offer strong long-term growth.
Here are three stocks that are benefiting from accelerating profits and revenue growth thanks to the increasing demand for their innovative products. Each is worth considering prior to their quarterly reports.
1. Forecast of Twilio's income: + 102% YoY
The shares of Twilio (NYSE :), cloud-based communication platform, have risen by 60% since January 1, as the strong demand for in-app communication solutions increases. The San Francisco-based company has become the leading name in the communications platform-as-a-service (CPaaS) sector and has big names such as Twitter (NYSE :), Coca-Cola (NYSE 🙂 and Lyft (NASDAQ 🙂 as customers .
The stock closed Tuesday at $ 143.09, giving it a market capitalization of $ 18 billion. The shares reached a high point of $ 151.00 ever on June 20.
It is easy to see why investors are excited: has gained momentum for five consecutive quarters and has risen by about 80% on an annual basis in the first three months of 2019. The earnings per share (EPS) was even more impressive. more than triple analyst expectations in two of the past three quarters.
Twilio is expected to report the results for the second quarter on or around August 7. According to consensus estimates, the cloud communications platform vendor must make a profit of $ 0.02 per share, while revenue is expected to increase by as much as 102% from the same quarter a year earlier to $ 263.72 million.
More importantly, investors will keep an eye on Twilio's update on its active customer accounts (ACA & # 39; s) to see if it can maintain its immense growth rate. The company announced in the quarterly report that it had 154,797 ACAs, an increase of 186% over the same quarter a year earlier.
2. MongoDB expected turnover: + 59.6% YoY
MongoDB (NASDAQ :), which made its trade debut in October 2017, is the most widely used NoSQL solution open-source database software platform.
The shares, which reached a highest point of $ 184.78 on June 10, have risen 81.4% year-to-date. The stock closed last night at $ 151.79, giving it a market capitalization of $ 8.35 billion.
The company has regularly reported Wall Street estimates with at least 50% YoY during each quarter since the IPO, due to the growing demand for its cloud-based open-source database offering.
MongoDB is expected to report a loss of $ 0.28 per share in the second quarter with a turnover of $ 91.77 million when it publishes the results on September 5. That would mean a 59.6% increase in Yoy revenues from the same quarter last year when it was posted a loss of $ 0.41 per share with revenue of $ 57.49 million.
Sales are growing thanks to the solid registration requirement for the Atlas cloud database, which saw sales increase by more than 400%. The offer now accounts for 34% of company turnover.
3. Zscaler Revenue Forecast: + 47.1% YoY
Zscaler (NASDAQ 🙂 – & # 39; the world's largest provider of cloud-based web security gateways – offers automated forensic threats and dynamic malware protection against advanced cyber risk & # 39; s.
The shares have doubled so far in 2019 and are rising by 110% as investors become increasingly bullish on the cloud-based cyber security specialist. The stock closed last night at $ 82.59, not far from the highest point of $ 85.50 ever reached on July 10, giving it a market capitalization of $ 10.38 billion
Zscaler then on September 4. Consensus calls for earnings per share of $ 0.02 for the fourth quarter, which would indicate a growth rate of profit of 200% per year. Turnover is expected to increase by 47.1% compared to the same period a year earlier to $ 82.63 million.
Investors would like to see if the San Jose-based company can continue to significantly expand its Private Access service, which gives organizations secure access to internally managed applications hosted in corporate data centers or the public cloud. The product accounts for around 10% of new customer contracts from Zscaler.
