Despite recent fluctuations and concerns, the future of the U.S. economy appears positive. Following the pre-Covid boom, the Covid-induced crash, and a too-hot recovery with rising inflation, the economy is now in a healthier phase.
Recent reports indicate that inflation is gradually decreasing, employment is growing, and wages are on the rise, suggesting that the economy is in better shape than anticipated, signaling a positive trajectory for the United States. Invest in these three growth stocks now, and enjoy profits.
Crocs Inc. (CROX)
Crocs Inc. (NASDAQ:CROX) is a unique American shoe manufacturer that sells foam shoes in its signature style “clogs”. With a stock valuation of $108.37, CROX saw a growth decline YoY of -11.48%, but a promising YTD increase of 16.02%.
Financially, CROX put the company in a secure position with greens across the board in its Q3 2023 results. With revenue being listed at $1.05 billion marking a 6.15% YoY increase, CROX outperformed consensus industry estimates by 1.14%. Furthermore, net income and diluted EPS both jumped, reaching $177.02 million and $2.87, each a respective YoY growth of 4.53% and 5.51%. Revenue sprung up as Crocs continued to increase production of both new and standard product lines.
With Crocs holding a wide target audience of both youth and adults, strategic business moves have been made to ensure the sanctity of the customer split in the future. Primarily, this comes from a combination of both youth-oriented and ordinary designs being released. On the youth front, Crocs recently announced a list of IP collaborations to come in 2024, including the likes of Pokemon, SpongeBob, Naruto, and more large-name brands. With the brand recognition of these IPs, a larger youth audience is expected to be reached through the new product drops and a surge in CROX valuation.
Zscaler Inc. (ZS)
Zscaler Inc. (NASDAQ:ZS) is a global cloud security company. Its stock is already up 77.40% in the past 12 months and trades for $253.27.
The cloud security market is expected to grow at a CAGR of 18.1% through 2029. The rising implementation of cloud computing is driving growth, making it one of the fastest-growing cybersecurity segments.
While the market growth is already high, Zscaler is beating it. In the first quarter of its fiscal year 2024, Zscaler brought in $496.7 million in revenue, up an eye-catching 40% YoY. Management expects this growth to continue and forecasts $507 million in revenue for the second quarter of the fiscal year, which would be an increase of more than 21% YoY. Furthermore, Zscaler more than doubled its operating profit and free cash flow YoY while achieving a record free cash flow margin of 45%. Its growth and profitability are higher and better than many of its competitors.
Moreover, in December 2023, Zscaler unveiled AI-powered analytics which aims to improve employee experience and reduce cyber risk. These features leverage cutting-edge technology to provide an optimal digital experience and comprehensive cybersecurity assessments. By integrating AI into its products, Zscaler demonstrates its commitment to providing the most efficient systems. As a tailwind, AI improvements to Zscaler’s product could boost sales and attract customers.
Hubspot Inc. (HUBS)
Hubspot Inc. (NYSE:HUBS) is a cloud-based CRM platform that helps businesses expand and grow. Its stock currently trades for $629.64 after rising 71.34% in the last 12 months.
The global customer relationship management (CRM) market was valued at $65.59 billion in 2023, and it is expected to grow at a CAGR of 13.9% from 2024 to 2030. Hubspot currently holds a 5.10% market share in this market, making it a formidable player in the CRM industry while still leaving it with room to grow.
Hubspot’s competitive advantages lie primarily in its integrated platform, its inbound marketing strategy, and its AI innovation. Firstly, as mobile devices proliferate, integrated mobile CRM platforms are increasingly sought after. Hubspot addresses these needs by offering a mobile app and by consolidating many features and tools into its platform, eliminating the need for multiple systems. Secondly, Hubspot’s marketing automation software sets it apart from competitors. Hubspot employs inbound marketing techniques that increase brand awareness by presenting helpful materials, a different and more modern technique compared to traditional advertising. Finally, Hubspot launched a variety of AI tools and features in September 2023, including a generative AI assistant and tools to forecast sales. 40% of enterprise customers have already used Hubspot AI features, emphasizing its impact.
Financially, Hubspot is performing well and growing quickly. In Q4 2023, it generated $581.9 million in revenue, up 24% compared to Q4 2022. Hubspot also grew its customer base to 205,091, up 23% from the prior year.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
