These growth technology stocks have reported significant year-over-year increases in their quarterly revenues and net income.
Thus, investors may want to consider them.
Luna Innovations
The first company to consider is Luna Innovations Inc. (LUNA, Financial), a Roanoke, Virginia-based developer, manufacturer and marketer of scientific and technical instruments.
The company grew its quarterly revenue by 44% to $19.5 million in fourth-quarter 2019, up from $13.54 million in the prior-year quarter. The net income rose by 128.3% to $2.15 million.
Following a 71.06% increase in the past year, the stock traded at a price of $7.27 per share at close on April 17 for a price-sales ratio of 3.38 versus the industry median of 0.88 and a price-earnings ratio of 48.47 versus the industry median of 6.81. The stock has a market capitalization of $221.64 million.
Luna Innovations does not pay a dividend.
Wall Street sell-side analysts recommend an overweight rating for shares of Luna Innovations, which means the stock is expected to outperform either the industry or the overall market with an average target price of $9.06 per share.
GuruFocus assigned a high 9 out of 10 rating to the company’s financial strength and a moderate score of 4 out of 10 to its profitability rating.
CLPS
The second company to consider is CLPS Inc. (CLPS, Financial), a Chinese provider of information technology and consulting services to financial companies.
The company has grown its quarterly revenue by 38.3% to $42.6 million in the quarter ended Dec. 30, 2019, up from $30.8 million a year ago. The bottom line of the quarterly income statement was a net income of $2.4 million in the final quarter of 2019, a positive shift from a loss of $1.4 million reported last year.
As a result of a 78.7% decline over the past year, the share price closed at a price of $2.07 on April 17 for a price-sales ratio of 0.44 versus the industry median of 1.76 and a price-earnings ratio of 69 versus the industry median of 20.65. The stock has a market capitalization of $30.71 million.
CLPS does not pay a dividend.
GuruFocus assigned a high score of 8 out of 10 to the company’s financial strength and a moderate score of 4 out of 10 to its profitability.
AppFolio
The third company to consider is AppFolio Inc. (APPF, Financial), a Santa Barbara, California-based provider of ad hoc business software solutions for the real estate and legal markets.
The company grew its revenue by 33.7% to $67.4 million in the quarter ended Dec. 30, 2019, up from $50.4 million in the year-ago quarter. The net income increased by 67% to $4.43 million.
The stock has risen 20.4% in the past year to close at $106.87 per share on April 17 for a price-sales ratio of 14.85 versus the industry median of 1.76 and a price-earnings ratio of 104.77 versus the industry median of 20.65. The stock has a market capitalization of $3.65 billion.
AppFolio does not pay a dividend.
Wall Street sell-side analysts recommend an overweight rating for shares of AppFolio with an average target price of $88 per share.
GuruFocus assigned a positive score of 6 out of 10 to both the company’s financial strength and profitability.
Disclosure: I have no positions in any securities mentioned in this article.
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