The following tech companies have seen their quarterly revenue and net income improve significantly on a year-over-year basis, attracting the interest of growth-focused investors. Furthermore, sell-side analysts on Wall Street have issued positive recommendation ratings for these stocks, suggesting they expect better market valuations in the future.
Affirm Holdings
The first stock that meets the criteria is Affirm Holdings Inc. (AFRM, Financial), a San Francisco-based operator of a platform providing various digital payment and commerce solutions for consumers and merchants in North America.
Affirm's quarterly revenue increased 54% year over year to $354 million as of the March 2022 quarter. Revenue was $230 million in the prior-year quarter. The company incurred a net loss of $54 million for the quarter, but this improved more than 80% from $287 million a year ago.
The stock was trading at $39.19 per share at close on Aug. 12 following a 38.1% decline over the past year for a market capitalization of $11.20 billion and a 52-week range of $13.64 to $176.65.
GuruFocus has given the company a rating of 4 out of 10 for financial strength and 1 out of 10 for profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $37.68 per share.
Stem
The second stock to make the cut is Stem Inc. (STEM, Financial), a San Francisco-based energy storage network serving U.S. and international commercial and industrial companies, independent power producers, renewable energy project developers and utility and grid infrastructure operators.
Stem's quarterly revenue increased 247.4% year over year to $66 million as of the June 2022 quarter. Revenue was $19 million in the prior-year quarter. Although the company reported a net loss of $32 million for the quarter, that was a significant 68% improvement over the net loss of $100 million in the year-ago quarter.
The stock was trading at $15.58 per share at the close of regular hours on Aug. 12 following a 27.55% drop that occurred over the past year, determining a market capitalization of $2.50 billion and a 52-week range of $5.72 to $27.5.
GuruFocus has given the company a rating of 5 out of 10 for financial strength and 1 out of 10 for profitability.
On Wall Street, the stock holds a median recommendation rating of overweight with an average target price of about $17.67 per share.
Payoneer Global
The third company that qualifies is Payoneer Global Inc. (PAYO, Financial), a New York-based cross-border payment service provider supporting transactions in approximately 190 countries and territories. The company's platform also offers business-to-business accounts payable/receivable, multi-currency accounts, physical and virtual Mastercard cards and others.
Payoneer Global's quarterly revenue increased 36% year over year to $136 million as of the March 2022 quarter. Revenue was $100 million in the prior-year quarter. The company reported a net income of $20 million, which was a positive reversal from the net loss of $3 million in the year-ago quarter.
The stock was trading around $6.70 a share as of Aug. 12 after falling 28.06% over the past year. It has a market cap of $2.38 billion and a 52-week range of $3.32 to $10.83.
GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 2 out of 10 to its profitability.
On Wall Street, the stock holds a median recommendation rating of buy with an average target price of about $8.75 per share.
