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These 3 Stocks Have Seen Revenue Growth of Over 35% and Are Still Down Big

By Jose Najarro - Jun 4, 2021 at 11:15AM

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They are in the diverse markets of gaming hardware, online education, and user authentication security, respectively.

In today's video I look at the stocks Corsair Gaming (CRSR 2.20%)Chegg (CHGG -4.88%), and Okta (OKTA 2.63%). Prices for all three of these stocks have taken a hit even though each company has seen strong revenue growth. Below I share a few reasons why investors should add these three companies to their watch lists.

Three reasons to add Corsair to your watch list

  1. Corsair reported 72% year-over-year (YOY) revenue growth and 104% YOY gross profit growth for the first quarter of 2021.
  2. Corsair has solid fundamentals for its trailing 12 months. It has positive cash flow from operations and positive earnings. 
  3. In the 12 months ending March 31, 2021, Corsair has launched 84 products, shipped 33 million units, and made three acquisitions.

Three reasons to add Chegg to your watch list

  1. Chegg reported 51% year-over-year (YOY) revenue growth and 64% YOY subscriber growth for the first quarter of 2021.
  2. Chegg has solid fundamentals for its trailing 12 months. It has positive cash flow from operations and more cash and short-term investments than debt. 
  3. Chegg believes 102 million students can benefit from Chegg services. In 2020 it had only 6.6 million subscribers, suggesting there's a vast untapped market for the company.

Three reasons to add Okta to your watch list

  1. Okta reported 37% year-over-year (YOY) revenue growth and 27% YOY total customer growth for the first quarter of 2021.
  2. Okta has solid fundamentals for its trailing 12 months. It has positive cash flow from operations and substantially more cash and short-term investments than debt. 
  3. For the upcoming year, Okta expects 45% YOY revenue growth and at least 35% growth each year for the next four years.

Click the video below for my full thoughts. 

*Stock prices used were the closing prices of May 28, 2021. The video was published on May 31, 2021. 



Jose Najarro owns shares of Okta. The Motley Fool owns shares of and recommends Okta. The Motley Fool recommends Chegg. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Chegg Stock Quote
Chegg
CHGG
$22.44 (-4.88%) $-1.15
Okta Stock Quote
Okta
OKTA
$107.22 (2.63%) $2.75
Corsair Gaming, Inc. Stock Quote
Corsair Gaming, Inc.
CRSR
$16.70 (2.20%) $0.36

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

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