Please ensure Javascript is enabled for purposes of website accessibility

These 2 Beaten-Down Nasdaq Superstars Turned Things Around Tuesday

By Dan Caplinger - May 18, 2021 at 3:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Two growth stocks were back on the rise.

Stocks have been a volatile place for investors to be lately, and that's been especially true for the companies that make up the Nasdaq Composite (^IXIC 0.00%). Big drops have been a regular part of the picture for Nasdaq investors, although the index managed to claw back a 0.2% gain Tuesday afternoon as of 2:30 p.m. EDT after recent declines.

Some popular stocks have taken big hits in recent months. However, a couple of them are doing well today, and that has a lot investors taking a look to decide whether now's the time to climb in. Below, we'll look at why CrowdStrike Holdings (CRWD -0.86%) and Enphase Energy (ENPH -4.38%) are rising and how their businesses look going forward.

Person looking at a monitor with an open computer to the side.

Image source: Getty Images.

CrowdStrike strikes again

Shares of CrowdStrike Holdings were up almost 5% Tuesday afternoon. The cybersecurity specialist announced a couple of new product launches that emphasized the value of its software-as-a-service  platform.

First, CrowdStrike said it had added new features to its cloud security posture management product, Falcon Horizon. The cloud-based software looks at internet traffic behavior and seeks to detect patterns that could signal current or future attacks. By using real-time telemetry and analytics, CrowdStrike is able to detect threats more quickly and take action to protect clients across its entire platform.

In addition, CrowdStrike has expanded its broader Falcon platform to incorporate more features and allow for more users. Expanded macOS coverage will appeal to clients who favor hardware platforms that run that operating system, while new capabilities from CrowdStrike's Zero Trust and the addition of a new message center for its Complete and OverWatch services will enhance the value of Falcon for users.

Even after today's gains, CrowdStrike shares are still more than 20% below their highs from February. If the cybersecurity expert can keep enhancing its offerings, however, growing demand from key customers could help bring the stock back to its former heights quickly.

Enphase's day in the sun

Elsewhere, shares of solar microinverter specialist Enphase Energy also picked up almost 5%. The stock has seen precipitous declines of more than 45% over the past several months, but the prospects for its underlying business remain strong.

Enphase's fundamentals look extremely strong right now. Revenue was up 47% in the first quarter of 2021 compared to year-earlier results, and that was even better than the company itself had projected. The company sees considerable year-over-year growth continuing into the near future.

What's uncertain, though, is how much solar power system installation activity got delayed due to the pandemic. Many industries are seeing pent-up demand work through the system as the economy reopens, but Enphase investors have had extremely high expectations that sent the stock soaring over the past few years.

Solar power technology continues to evolve, and Enphase's microinverters have become must-have components for the most efficient systems. That's not likely to change, and that's why so many shareholders are patient with Enphase even through its dramatic decline during much of 2021.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

CrowdStrike Holdings, Inc. Stock Quote
CrowdStrike Holdings, Inc.
$189.52 (-0.86%) $-1.65
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
$12,657.55 (0.00%) $0.00
Enphase Energy, Inc. Stock Quote
Enphase Energy, Inc.
$287.74 (-4.38%) $-13.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.