3 Stocks to Buy for the Next Bull Run: February 2024
The positive future of the U.S. economy appears promising, with a projected $7 trillion growth over the next decade. This is driven by a surge in immigration. The Congressional Budget Office’s estimate underscores the economic benefits of increased immigration. A larger labor force contributes to heightened productivity without causing wage inflation. This means the economy will only boom over the next few years. As a result, you need to invest in these undervalued stocks and profit massively. Grab these stocks to buy for the next bull run to get ready for the boom.
Roblox (RBLX)
Roblox (NYSE:RBLX) is an online game platform and game creation system that has evolved over recent years into a virtual universe and online community. RBLX is up 15.7% YoY with a 12-month median price target of $50.00, representing an 11.76% increase from its current price of $44.74.
Valued at $281.77 billion in 2023, the global gaming market is expected to reach $665.77 billion by 2030, exhibiting a CAGR of 13.1%. Propelled by advancements in virtual reality, augmented reality and cloud gaming, the possibility of new immersive experiences presents immense growth opportunities.
In Q4 2023, Roblox reported revenue of $749.9 million and Adjusted EBITDA of $259.6 million, up 30% and 42% YoY, respectively. The company also reached 71.5 million average daily active users, up 22% YoY. Looking ahead, management issued better-than-expected Q1 2024 revenue guidance of $755 million to $780 million. These metrics reflect not only strong financial strength but also a rapidly expanding user base.
Furthermore, Roblox has invested heavily into AI and its own version of the Metaverse to advance its digital community. For example, the company’s recent launch of an AI-powered “unified translation model” will allow players to overcome language barriers and converse in real time. Combined with Roblox’s new availability on the Meta Quest VR headset as well as Sony Playstation, this addition to Roblox’s platform signifies management’s continued dedication to capitalizing on the Metaverse trend.
Pinterest Inc (PINS)
Pinterest Inc (NYSE:PINS) is a virtual discovery engine and social media service specializing in image sharing. PINS is currently trading at $40.72, up 55.25% YoY.
Valued at $392.18 billion in 2022, the global social media platforms market is expected to reach $2.28 trillion by 2028, exhibiting a CAGR of 34.13%. Propelled by the increasing adoption of mobile technologies and the digitization of society, the social media market provides many avenues for growth.
In Q4 2023, Pinterest reported revenue of $981 million, which despite narrowly missing analyst expectations, grew 12% YoY. The company also boasted an all-time high of 498 million monthly active users, an increase of 11% YoY. Furthermore, Pinterest’s levered FCF margin of 11.75%, above the sector median of 7.58%, is a strong indicator of profitability. These metrics showcase the company’s growth potential, which is reflected in management’s Q1 2024 revenue growth forecast of 15% to 17% YoY.
Furthermore, in a call with analysts, Pinterest CEO Bill Ready announced a new ad deal with Google. This app integration with Google, similar to its partnership with Amazon, will focus on third-party ads, boosting its overall sales. The partnership is expected to aid in the monetization of international markets and could significantly affect Pinterest’s revenue moving forward. With its Amazon partnership still providing tailwinds heading into Q1 2024, Pinterest is well positioned to capitalize on its strong financials and new Google partnership.
Cloudflare Inc (NET)
Cloudflare Inc (NYSE:NET) is an American company specializing in cloud cybersecurity and content delivery network services. It has a valuation of $83.35 which is 42.80% more than last year.
NET’s financials are compelling on every metric, whether growth, profitability, or valuation. Its P/E Non-GAAP is high at 203.98 which is nearly 808.78% more than the sector average. Revenue Growth (YoY) is also lofty at 35.21% or 629.42% more than the sector median of 4.83%. Gross Profit Margin was impressive at 75.89% or 54.34% more than the sector.
NET is a part of the cyber security industry. This industry is predicted to grow at a CAGR of 13.8% from 2023-2030. As digitalization and urbanization increase, so will electronic commerce thus causing various firms and businesses to require cyber security. NET is a well-established leader in this sector and so with its growth, it should benefit substantially. Due to its superb financials and its being in a fast-growing profitable industry, Cloudflare is sure to break making it an excellent stock for investors looking for diversity and quick profit therefore earning it a “Buy” rating. If you are looking for stocks to buy for the next bull run, start here.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
