In today's video I look at fundamentals and valuation metrics for Activision (ATVI), Salesforce (CRM 2.10%), and Alphabet (GOOGL 4.60%). With talk of interest rate hikes coming sooner than expected, some investors have moved to find companies with solid earnings, unleveraged balance sheets, and strong cash flow. Below I share a few highlights from the video on why investors should add them to their watch lists.
Two reasons to add Activision to your watch list
- Activision is a leader in the gaming market, providing games on console, PC, and mobile platforms. For the first quarter of 2021, the company reported 72% year-over-year (YOY) revenue growth in its Activision segment, driven by its Call of Duty games, and 22% YOY revenue growth in its King segment, driven by solid Candy Crush growth.
- Activision has exceptional fundamentals when you look at its trailing 12 months (TTM). The company has profitable earnings, positive cash flow from operations, and more cash and short-term investment than debt.
Two reasons to add Salesforce to your watch list
- Salesforce is a growing company focused on providing customer relations management tools to the enterprise world. It reported 23% YOY revenue growth for the first quarter of 2021, and it has guided 21% YOY revenue growth for the upcoming quarter.
- Salesforce has exceptional fundamentals when you look at its TTM. The company has profitable earnings, positive cash flow from operations, and more cash and short-term investment than debt.
Two reasons to add Alphabet to your watch list
- Even though Alphabet's stock price is sitting at all-time highs, looking at specific valuation metrics shows that the company might still have some room to grow.
- Alphabet has exceptional fundamentals when you look at its TTM. The company has profitable earnings, positive cash flow from operations, and more cash and short-term investment than debt.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of June 16, 2021. The video was published on June 17, 2021.