In today's video I look at fundamentals and valuation metrics for Activision (ATVI), Salesforce (CRM 1.14%), and Alphabet (GOOGL -0.27%). 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

  1. 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. 
  2. 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

  1. 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.
  2. 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

  1. 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. 
  2. 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.