Finding the best investment ideas is tricky.
The market fluctuates and transitions into different cycles, with the constant temptation to switch your bets to chase trending stocks. However, the most successful investors know that market millionaires aren’t built overnight. Choosing the right stocks to buy and hold presents the most significant potential for growth. And tech stocks, with their historically excellent returns, are great candidates for this strategy.
It’s not going to be easy, though. Looking for healthy tech stocks will involve more than just listening to the noise. Great foundations, a solid balance sheet, cash flow, desired products, and the ability to change are musts. Let’s examine three companies that fit the bill.
Procore Technologies, Inc. (PCOR)
One of the emerging players in cloud-based management is Procore Technologies, Inc. (NYSE:PCOR). The company primarily caters to the construction industry. Also, it connects shareholders like architects, engineers, and specialty contractors into a single collaborative solution.
This simplifies complex workflows and improves operating efficiency by providing real-time access to critical project information. Procore’s Copilot has been one of its most recent client solutions to help with automotive-intensive manual processes.
Notably, PCOR consistently beats analyst earnings expectations by double digits. Top line numbers aren’t looking too shabby, either. Fourth quarter revenue reached $260 million, growing 29% year over year (YOY). Meanwhile, full-year revenue grew 32% to $950 million. In addition, GAAP and non-GAAP numbers remained strong, with 82% and 85% growth for both periods.
These results underscore PCOR’s ability to grow the business further, efficiently manage its operations, and provide investors with opportunities despite market conditions.
Intapp, Inc. (INTA)
While AI is front and center in the headlines, fintech is another important, but growing sector. One company that’s not only participating in fintech but also taking advantage of it is Intapp, Inc. (NASDAQ:INTA).
Intapp sells cloud-based software solutions (SaaS) to the professional and financial services industry. This includes private capital, legal, accounting, investment banking and consulting firms.
Intapp’s software platform allows clients to meet risk and compliance requirements and offers various other back-office services to assist personnel and clients.
Furthermore, Intapp, Inc. is making advancements in generative AI with its Intapp Assist. It helps clients manage their schedules, summarize unstructured content, and more. In addition, acquiring AI company Delphai will boost its AI capabilities in the legal space.
SaaS and support revenue, its primary segments, grew 25% YOY, reaching $77.1 million. Meanwhile, total revenue grew 23% YOY, which amounted to $103.9 million. Also, cloud annual recurring revenue (ARR) rose by 34% YOY. The company has been exhibiting strong growth for the last few quarters, with the latest one hitting 29.41%.
MongoDB, Inc. (MDB)
MongoDB, Inc. (NASDAQ:MDB) is one of the top names in scalable application development. The company has built a brand that helps enterprises address enterprise-level issues efficiently.
This brand recognition has led the company to be recognized as a founding member of the U.S. Artificial Intelligence Safety Institute Consortium. They will work together to support the creation of safe and trustworthy artificial intelligence (AI) tools and applications. In addition, it is partnering with Vodafone, one of the biggest telecom organizations in the world. MongoDB and Vodafone will drive through modernization with cloud-native apps.
Third-quarter financial results reveal revenue growing 30% YOY and reached $432.9 million. MongoDB Atlas’ revenue, a pivotal component of its total revenue, grew 36% YOY. Additionally, the company highlighted that its customer base has surpassed 46,400 and is growing faster than expected. Also, MDB consistently beats analyst earnings expectations and is well-loved as evidenced by their strong buy recommendations. Its growing presence in the market and continuous performance make it one of the best for tech enthusiasts looking for long-term growth.
On the date of publication, Rick Orford 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.
