Please ensure Javascript is enabled for purposes of website accessibility

These 2 High-Growth Stocks Could Power the Bull Market's Next Record Run

By Dan Caplinger - Jun 22, 2021 at 5:10PM

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

As good as 2020 was, the best might be yet to come.

The stock market had a good day on Tuesday, building on momentum from earlier in the week and powering the S&P 500 (^GSPC -0.16%) and Nasdaq Composite (^IXIC 0.00%) to record closes. The Dow Jones Industrial Average (^DJI 0.23%) posted modest gains as well. Overall, investors seem to have confidence that the Federal Reserve won't take away the punch bowl of accommodative monetary policy too quickly, and that should serve to help some of the growth stocks that led 2020's massive rebound to further gains.

Index

Percentage Change

Point Change

Dow

+0.20%

+69

S&P 500

+0.51%

+22

Nasdaq Composite

+0.79%

+112

Data source: Yahoo! Finance.

When it comes to stock market momentum, the place many investors look is the high-growth arena. Rising companies have come to prominence by taking advantage of favorable trends in the marketplace, and today's gains from cybersecurity expert CrowdStrike Holdings (CRWD 1.02%) and connected-TV platform provider Roku (ROKU 1.21%) signaled that another wave higher for these popular stocks could be the impetus for a continuing bull market run during the second half of 2021 and beyond.

IT professional looking at a document in a data center.

Image source: Getty Images.

CrowdStrike gets some positive attention

Shares of CrowdStrike Holdings were up nearly 8% on Tuesday. That pushed the cybersecurity stock to its best level ever, wiping out a substantial correction that took place earlier this year between February and March.

The latest upward move for CrowdStrike came amid favorable comments from Wall Street analysts. Professionals at Stifel pointed to CrowdStrike's business as having a lot more potential for future growth, and they therefore upgraded the stock from hold to buy. Stifel also set a $300 per-share price target on CrowdStrike's stock.

Analysts are pleased to see CrowdStrike growing its business in multiple ways. The company is attracting new customers, taking advantage of favorable trends toward increasing digitalization across the global economy. At the same time, with a wide array of features on its platform, CrowdStrike has done a good job of enticing existing clients to use more of the new features that the cloud-security specialist is releasing on a regular basis.

In the long run, Stifel believes that CrowdStrike could multiply its current customer count nearly tenfold. That would obviously have huge implications for the stock, and that's why investors on Tuesday are looking at CrowdStrike with a more favorable eye.

The show goes on at Roku

Meanwhile, shares of Roku closed higher by another 5%, moving above the $400 per-share level for the first time since early March. The streaming television-platform provider still has further to go to reach its all-time highs, but shareholders seem optimistic about Roku's long-term prospects.

Tuesday's gains added to a 4% move higher on Monday following favorable comments from analysts covering the stock. Analysts at Loop Capital boosted their price target on Roku by $25 per share, with a new target of $475 per share. The move came amid bullish comments about the state of the advertising market, which many see recovering in the wake of reopening following the worst of the COVID-19 pandemic.

Roku has thus far done an excellent job of playing streaming services against each other. By maintaining a neutral platform, Roku isn't playing favorites, but its service has become an essential vehicle to reach potential subscribers. That's given Roku increasing leverage to negotiate favorable deals, and as digital-advertising spending rises, Roku should be in an even better position to stay on top of its game.

High-growth stocks like Roku and CrowdStrike played vital roles in helping the stock market reach record highs in 2020. If they can continue to perform well, then they might prove equally instrumental in allowing the bull market to keep moving higher.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc. and Roku. 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.
CRWD
$191.17 (1.02%) $1.93
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$32,803.47 (0.23%) $76.65
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$4,145.19 (-0.16%) $-6.75
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$12,720.58 (0.00%) $0.00
Roku Stock Quote
Roku
ROKU
$82.26 (1.21%) $0.98

*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
377%
 
S&P 500 Returns
123%

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

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.