Tech growth investors may be interested in the following stocks as they have grown their quarterly revenue and net income substantially on a year-over-year basis.
Zoom Video Communications
The first company investors may be interested in is Zoom Video Communications Inc. (ZM, Financial), a San Jose, California-based provider of a platform for video-first communication services worldwide.
The company’s revenue grew 169% year over year to $328.17 million as of the first quarter, up from $122 million in the prior-year quarter. The net income was $27.08 million in the first quarter of 2020, increasing dramatically from $2.21 million.
The stock traded at $261.74 per share at close on July 2 for a market capitalization of $73.84 billion and a 52-week range of $59.54 to $263.8. The share price is up nearly 190% since last year.
Zoom Video Communications does not pay dividends.
Wall Street sell-side analysts have issued a hold recommendation rating and established an average target price of $216.06 per share.
The company's top fund holder is Morgan Stanley with 4.91% of shares outstanding, followed by Hillhouse Capital Management Ltd. with 3.92% and Baillie Gifford & Co. with 2.57%.
Dynatrace
The second company that meets the criteria is Dynatrace Inc. (DT, Financial), a Waltham, Massachusetts-based provider of a software intelligence platform for running enterprise cloud applications.
The company’s revenue came in at $150.6 million in the most recent quarter, which ended on March 30, growing 30% year over year. Total revenue was $116.2 million in the year-ago quarter. The quarterly net income of $46.7 million marked a positive switch from a net loss of $30.6 million recorded last year.
The stock closed at $42.35 on July 2 for a market capitalization of $11.89 billion and a 52-week range of $17.05 to $44.16. Year to date, the share price is up 67%.
Dynatrace does not pay dividends.
Wall Street sell-side analysts recommend a buy rating and an average share price target of $39.38 for this stock.
With 52.04% of shares outstanding, Thoma Bravo LLC is the company's top fund holder, followed by Philippe Laffont with 4.09% and Vanguard Group Inc. with 3.45%.
Huya
The third company that qualifies is Huya Inc. (HUYA, Financial), a Chinese operator of platforms where games are live streamed for users.
The company recorded a nearly 48% year-over-year increase in its quarterly revenue to 2.41 billion yuan ($341 million) as of first quarter of 2020, up from 1.63 billion yuan for the same quarter of 2019. The net income also increased by almost 170% to 171.2 million yuan, up from 63.5 million yuan for the same quarter of 2019.
The stock price traded at $19.45 per share at close on July 2 for a market capitalization of $4.28 billion and a 52-week range of $11.78 to $28.2. Over the past year, the share price has lost 25%.
Huya does not pay dividends.
Wall Street sell-side analysts recommend a buy rating for this stock with an average target price of $157.94 per share.
The company's top fundholder is Capital World Investors with 3.55% of shares outstanding, followed by Jim Simons with 2.35% and Morgan Stanley with 1.98%.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 Stocks Growing Revenue Fast
- A Trio of High Yield Stocks for the Dividend Investor
- A Trio of Low Price-Book Stocks
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