In this video from "The 5" on Motley Fool Live, recorded on Oct. 4, Fool.com contributors Brian Withers, Rachel Warren and Demitri Kalogeropoulos each share an attractive stock they're watching today. Read on for reasons to like Zoom (ZM -3.03%), Asana (ASAN 1.56%), and Five Below (FIVE 0.82%).
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Brian Withers: ...talks about "Are there stocks you have on your radar that would be potential buying opportunity?"
I'll just go first to break the ice here. When I talked about corporate headquarters, one of the things I didn't say is all of those rooms would have to be Zoom enabled. [laughs] I think Zoom is going to play a huge part in the future of the hybrid workplace, and the ticker symbol ZM, it's down about 55% from its high and it's never looked cheaper from a valuation perspective. The company's balance sheet, the income statement, the cash flows never looked better.
I think Zoom is a great buy if you're willing to sit and be patient for about five years. Demitri, Rachel, you got one that you're looking at that's on sale right now
Rachel Warren: I'll go. This is actually a company I talked about in an earlier segment. It's not on sale year-to-date. But if you look back over the last week, shares are down about 10 percent. I'm talking about Asana, which is a great project management software stock that I do not currently own shares of but the more I'm learning about it as I'm delving more into tech stocks, I think it might be a really interesting company to buy in the future.
I think the company is really quickly seizing up market share in a very fast growth industry that I personally don't think is overcrowded yet. Obviously Asana has its fair share of competitors, but it is continuing to see rising revenues in increasingly fast pace. It has a really impressive selection of customers.
Huge companies like Amazon use Asana. Shares, they are hovering around $100 right now. I think the company has a lot of room to run in the coming years, especially with more and more companies, whether you're working in person or remote, relying on task management software so I think it's an interesting company to consider.
Demitri Kalogeropoulos: That's cool. I haven't looked at them before. I'll take a look there.
I'll do a little plug for company called Five Below. I'm just looking at their chart right now. This is youth-focused retailer. They've had a bad, let's say month or so of this. Since the market started dropping, the stock is down right now two-and-a-half percent for the year. It had been up 40% before this little drop.
I'm very impressed with this growth story. They've got around 1,200 stores around the country and they believe they can get as many as 2,500. They are adding flexibility now, obviously Five Below refers to their focus to those value on products that are priced at five dollars or below. But they've got a ten below section now and they slowly introduced that and their customers love it.
They've got more flexibility with that. They've got gaming sections in their home decorating sections. There's a lot of good ways that they can keep growing sales within their stores even as they expand to new markets.
Finally, you might think this is a fad driven thing to get into, but I understand that concern with the stock, but for several years now they've just been growing pretty steadily and they have ups and downs in their fads, but their merchandising strategy has allowed them to continue. To not really suffer any big drawdowns when, I'm thinking like the spinner craze of two years [laughs] ago, really impacted their business and there was actually a worry, Wall Street was asking, analysts asking them, how are you going to grow sales on top of your fidget spinner craze.
[laughs] But they found something else. That's the way that works. I'm impressed with that. That's a stock to maybe keep an eye on.