In a market landscape teeming with potential, up-and-coming tech stocks often stand as the unsung heroes of portfolio growth. Many investors may have their sights glued to established giants. However, the real excitement is bubbling under the surface in the domain of emergent tech enterprises. These are the tech stocks to watch. The companies pioneering advancements in everything from artificial intelligence to renewable energy. Still, the journey to becoming a future tech stock winner isn’t without its turbulence.
Risk and reward are two sides of the same coin, but these stocks may offer significant upside when navigated carefully. So, if you’re scouring the market for tech stocks, casting a discerning eye could uncover opportunities that others might overlook. Buckle up as we dive into the nitty-gritty of what makes these companies truly compelling investments for the savvy tech enthusiast.
Nextdoor Holdings (KIND)
In the universe of up-and-coming tech stocks, Nextdoor Holdings (NYSE:KIND) demands your attention. The company has built a unique and growing niche within social networking, focusing on a user-centric model with hyperlocal interactions like neighborhood forums and crime alerts. Over the past six months, the stock has seen a 10% uptick. Nextdoor’s recent addition to the Russell 3000 Index is a notable development. This suggests that Wall Street is starting to recognize the company’s potential.
Financially, Nextdoor’s Q2 2023 report reveals a complex portrait. While revenue increased to $56.9 million, a 4% year-over-year climb, it also posted a net loss of $35.4 million. But, don’t let that deter you. The net change in cash surged by 111%, hinting at operational improvements. Moreover, Nextdoor has shown resilience in planning for future growth; it even forecast its Q2 2023 revenue above consensus. With the company continually taking strides to diversify its user base and combat misinformation through initiatives like fact-checking tools, it’s primed to deal with existing criticisms.
While it’s important to tread carefully given Nextdoor’s current profit margins, the company offers a compelling vision for connecting communities and supporting local businesses. A mission that is not only socially relevant, but also ripe for monetization through various channels. Keep your eye on Nextdoor, its evolving business model and ongoing improvements suggest a solid bet for long-term growth.
PAR Technology (PAR)
In a year that has catapulted tech stocks to the forefront of Wall Street’s attention, PAR Technology (NYSE:PAR) stands out as an up-and-coming player with enviable gains. With a year-to-date (YTD) return of nearly 70%, it’s worth giving this stock more than a cursory glance.
Despite missing its June 2023 EPS estimate by a substantial 52% and posting a net income drop of 4.5%, the company has made strategic leaps that could potentially cushion its long-term trajectory. Most notably, through its subsidiary PAR Government Systems, PAR Technology recently secured a prime spot on a $900 million U.S. Space Force contract. In partnership with ICEYE, this five-year agreement underscores the firm’s burgeoning credibility in satellite-based services, encompassing various domains such as space, air, land and maritime.
So, what’s fueling investor optimism? Firstly, PAR Technology has a diversified revenue stream that transcends mere point-of-sale systems, extending to kitchen display systems, loyalty programs and much more. Moreover, the company recently clinched a five-year, $21 million contract to bolster U.S. Navy operations in Djibouti, Africa, further widening its scope beyond restaurant and retail solutions.
With over 40 years in business, PAR Technology has a footprint that spans more than 110 countries. This experience is helping to solidify its place among future tech stock winners. The company’s diverse portfolio and commitment to innovation make it noteworthy. Especially for investors keen on diversification within the tech sector, PAR Technology is a tech stock to watch.
Workday (WDAY)
Workday (NASDAQ:WDAY), a frontrunner in the realm of enterprise cloud applications for finance and human resources, is showcasing more than just resilience amid economic uncertainty, it’s thriving. Posting a robust YTD return of 46%, the company strongly positions itself as one of the tech stocks to watch.
Digging into its second-quarter financials for fiscal 2024, Workday reported a significant 16% jump in revenue to $1.79 billion. Additionally, the company saw an eye-popping 223% surge in net income to $78.7 million. What’s more, Workday beat the earnings per share expectations by a robust 14%. This underlines the company’s ability to deliver on its financial commitments.
More than just numbers, Workday is putting innovation at the forefront. It recently upped its fiscal 2024 subscription revenue guidance and unveiled its advancements in generative AI capabilities. These developments highlight the company’s focus on innovation, positioning it as an appealing choice among emerging tech stocks. Workday’s recent quarterly results reveal broad-based strength across various metrics. The company is also investing in future-oriented initiatives. Therefore, Workday is not merely a tech stock to buy, but one to hold for the long term. This could make Workday one of the future tech stock winners that shouldn’t be ignored.
On the publication date, Faizan Farooque did not hold (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.
