In today's video, I look at the following growth stocks: Shopify (SHOP 3.24%), Twilio (TWLO 4.84%), and Redfin (RDFN +0.00%). The stock prices for each have dropped roughly 25% to 48% from their 52-week highs. Below I share three bullish reasons for each stock on why you should add them to your watch list.
Three reasons to add Twilio to your watch list
- Twilio reported 62% year-over-year revenue growth for the first quarter of 2021, and more than 235,000 active customer accounts compared to 190,000 at the same time last year.
- Twilio has strong fundamentals as it is positive in cash flow from operations and has substantially more cash and short-term investments than debt.
- Twilio's forward price-to-sales ratio has dropped to roughly 15.4, making it more attractive compared to a few months ago when it reached levels of over 23.
Three reasons to add Shopify to your watch list
- Shopify reported 110% year-over-year revenue growth and 62% year-over-year monthly recurring revenue growth for the first quarter of 2021.
- Shopify has exceptional fundamentals as it is profitable, positive in cash flow from operations, and has substantially more cash and short-term investments than debt.
- Shopify's forward price-to-sales ratio has dropped to roughly 22.7, making it more attractive compared to a few months ago when it reached levels of over 35.
Three reasons to add Redfin to your watch list
- Redfin reported 40% year-over-year revenue growth and 229% year-over-year gross profit growth for the first quarter of 2021.
- Redfin has strong fundamentals as it is positive in cash flow from operations and has more cash and short-term investments than debt.
- Redfin's forward price-to-sales ratio has dropped to roughly 2.5, making it more attractive compared to a few months ago when it reached levels of over five.
Click the video below for my full thoughts.
*Stock prices used were the closing prices of May 14, 2021. The video was published on May 15, 2021.
