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3 Great Growth Stocks to Invest in Now


  • These great growth stocks can thrive despite the current industry downturn.
  • Datadog (DDOG): Datadog is continuing to win tons of new business in the observability space.
  • Snowflake (SNOW): The cloud data solutions leader hasn’t slowed down despite the industry downturn.
  • Sprinklr (CXM): This smaller SaaS company helps big brands manage their online presence.
great growth stocks - 3 Great Growth Stocks to Invest in Now

Source: 3rdtimeluckystudio / Shutterstock

There is a healthy debate right now about whether growth stocks are on the upswing. On the one hand, growth names have rallied sharply to start 2023. On the other, the factors that sunk growth shares in 2022 remain present.

The tech industry is facing layoffs, revenue growth is down, and higher interest rates continue to cause slumping valuations across the industry.

The thing to keep in mind, however, is that there are some great growth stocks that can power through. Regardless of whether we’re in a new bull market or merely a pause in the tech industry’s downturn, there are some firms that are still thriving.

These three best growth stocks to buy now are posting sizzling revenue growth and are already profitability as well. This means that these companies can continue to build their businesses without worrying about running out of cash.

While the tech industry has its challenges, these three growth stocks should come out stronger regardless.

DDOG Datadog $70.67
SNOW Snowflake $145.16
CXM Sprinklr $12.86

Datadog (DDOG)

The Datadog (DDOG) logo displayed on a laptop screen.
Source: Karol Ciesluk / Shutterstock.com

Datadog (NASDAQ:DDOG) is a software-as-a-service (SaaS) company focused on observability. Its platform allows information technology professionals to monitor all of a company’s tech infrastructure from one place.

Datadog helps manage logs, databases, user experience, network and security, and more.

The revolutionary thing about Datadog is that it is an all-in-one tool. Historically, different parts of the network would be in different silos and things fell through the cracks. Particularly in this age of increased hacking and cybercrime, Datadog provides its clients with an invaluable service.

Market demand for Datadog’s solutions has been tremendous. The firm’s revenues have skyrocketed from $198 million in 2018 to $1.7 billion last year. Analysts expect that to jump to $2.1 billion this year and $2.7 billion in 2024.

Datadog is already profitable, and earnings should jump significantly in coming years. Given the necessity of monitoring a firm’s IT systems, Datadog has grown even during this tech industry downturn. This positions the company for a boom once the overall sector picks back up.

Snowflake (SNOW)

Snowflake symbol and logo at the company corporate headquarters in Silicon Valley. SNOW stock.
Source: Sundry Photography / Shutterstock

Snowflake (NYSE:SNOW) is another cloud company that has revolutionized its category.

The firm’s solutions for data storage, management, and analysis have attracted a gigantic customer base. Revenues are up from $97 million for fiscal year 2019 to an estimated $2.9 billion for the current year.

Despite the slowdown in the tech industry, Snowflake hasn’t seen any ill effects. Analysts expect a shocking 40% top-line revenue growth rate this year, and another 37% growth on top of that next year from Snowflake.

The firm is profitable. It also has more than $12/share of cash on its balance sheet, giving it tremendous flexibility in running its operations and seeking growth opportunities during this current industry slowdown.

All this positions Snowflake as a company that can keep firing on all cylinders, taking market share and cementing its position as the future leader in the cloud data space for many years to come.

Sprinklr (CXM)

hands typing on a computer keyboard under a computer screen
Source: Shutterstock

Sprinklr (NYSE:CXM) is a SaaS company focused on customer relationships and content marketing. Specifically, it provides tools and applications to companies to manage their brands and ad campaigns online.

An example would be on Twitter, where Sprinklr helps its clients monitor their brands, respond to customer feedback, track keywords, and more.

This sort of sentiment monitoring can be vital for helping brands manage their image across many platforms, ad campaigns, and channels.

Sprinklr has been booming, with revenues jumping from $324 million in fiscal year 2020 to an estimated $712 million for the current year. Sprinklr has already reached profitability now, putting it ahead of many peers.

As for 2023, Sprinklr is working to bring over new clients from Hootsuite and other rivals. Any incremental success in bringing in additional business should help shares move higher. For now, CXM stock sells for less than 6 times revenues, which is a fine price for a fast-growing already profitable SaaS firm.

On the date of publication, Ian Bezek held a long position in CXM stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/3-great-growth-stocks-to-invest-in-now/.

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