There are a lot of cutting-edge technologies driving the stock market right now. Artificial intelligence (AI) remains the main driver. But there are other fast-growing segments where revolutionary companies are seeing their share prices take off amid accelerating growth. Electric vehicles, online banking, e-commerce, cryptocurrency mining, cybersecurity, and data analytics are some of the sectors where companies are starting to emerge as growth stocks and share prices are rising fast. For investors, this offers a big opportunity for gains and to bolster the returns in a portfolio. The key is to know where to look for the stocks that are emerging as leaders and running ahead of the pack. Here are three revolutionary companies on the brink of growth.
SoFi Technologies (SOFI)
SoFi Technologies (NASDAQ:SOFI) stock recently rose 13% after the online bank reported its first-ever quarterly profit along with record revenue. SoFi, which issues products ranging from student loans to credit cards, reported fourth-quarter 2023 earnings per share (EPS) of 2 cents, beating Wall Street forecasts of a break-even quarter. A year earlier, SoFi Technologies reported a loss of 5 cents per share. Revenue totaled $594.25 million, hitting record levels and beating the $572 million that analysts expected.
Overall sales at SoFi were up 34% from the previous year, and the company’s lending segment posted excellent results, with student and home loan origination volumes rising 95% and 193%. Deposits at the online lender rose by $2.9 billion to $18.6 billion, and its membership increased by nearly 585,000 to more than 7.5 million online customers. For all this year, SoFi said that it expects EPS of 7 cents to 8 cents. Analysts had been calling for EPS of 5 cents. SOFI stock is now up nearly 20% in the last 12 months.
Cloudflare (NET)
The stock of Cloudflare (NYSE:NET) rose 21% after the cybersecurity firm issued better-than-expected Q4 2023 financial results and issued bullish forward guidance. The company announced EPS of 15 cents versus 12 cents that had been forecast on Wall Street. Revenues in the quarter came in at $362.5 million compared to the $353.1 million that was expected among analysts. Sales were up 32% from a year ago. Cloudflare also signed its largest customer deal ever in Q4.
Looking ahead, the company said that it expects EPS of 13 cents and $373.5 million in revenue for the current first quarter of 2024. Analysts had been calling for 12 cents in earnings and revenue of $372.3 million. Cloudflare, which provides cybersecurity for cloud computing, has been on a tear over the past 18 months, registering huge growth amid consistent demand for its products. NET stock has gained 46% over the last 12 months and is up 455% over the past five years.
Palantir (PLTR)
Palantir (NYSE:PLTR) is a unique data analytics company whose stock has also been marching higher as the company’s growth begins to accelerate. PLTR stock rose 20% on recent news of the company’s strong Q4 2023 earnings. For the final three months of last year, Palantir reported EPS of 8 cents, which matched Wall Street forecasts. Revenue amounted to $608.4 million, topping analysts’ expectations for sales of $602.4 million. The company’s revenue increased 20% from a year earlier.
The majority of the growth was attributed to demand for artificial intelligence, which Palantir CEO Alex Karp characterized as “unrelenting” during an earnings call with analysts and media. The company is in the process of rolling out a new AI platform. As for guidance, Palantir said it expects to report between $612 million and $616 million in revenue during the current first quarter and revenue for the full year of $2.65 billion to $2.67 billion. Wall Street was expecting sales of $2.66 billion for the entire year.
Palantir has now reported four consecutive quarters of profitability, making it eligible for inclusion in the S&P 500 index. PLTR stock has gained 172% over the last 12 months, including a 52% increase in 2024.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
