Nasdaq Bear Market: 2 Top Stocks to Buy Right Now
In an environment that is
volatile and uncertain, itU+02019s quite difficult to identify
winning bets. But as investing is a long-term play, you need to
place your bets on companies that have strong fundamentals and
solid profit margins. The tech-heavy Nasdaq Composite index is down
almost 333% from all-time highs, which suggests several tech stocks
are available at a massive discount.
Let’s take a look at two such
tech stocks investors can buy right now.
One of the largest
in the world,
CRM) is valued at a market cap of $147 billion. The
stock is currently trading 53% below all-time highs due to the
ongoing bear market. Despite the pullback, the stock has surged
265% in the last ten years.
Salesforce is the undisputed
leader in the customer relationship management space, a market
valued at more than $200 billion.
Its suite of subscription-based
products is used by more than 150,000 companies globally.
Salesforce’s Customer 360 cloud-based
platform allows enterprises to gain easier access to data sets
across verticals such as sales, marketing, and commerce.
In the last four quarters,
Salesforce has generated close to $6 billion in free cash flow and
$29 billion in sales. These two figures have surged by almost 200%
in the last five years. In fact, Salesforce has grown its top line
by 20% annually in the last ten years and is forecast to increase
revenue from $26.5 billion in fiscal 2022 to $35.6 billion in
Its adjusted earnings per share
are also forecast to rise from $4.78 to $5.68 in this period. We
can see that despite a challenging macro-environment, Salesforce
continues to expand at an enviable pace.
It continues to expand its
customer base as onboarded companies, including
Workday (NASDAQ: WDAY) and Uber Technologies
in recent quarters.
Due to the decline in CRM stock,
the company’s management announced a share buyback program worth
$10 billion as they believe Salesforce is undervalued. Currently,
Salesforce is valued at 5x forward sales and 31.4x forward
earnings, which might seem expensive.
Salesforce ended the recent
quarter with more than $13.5 billion in cash, providing it with
enough flexibility to reinvest in growth as well as
The Trade Desk
A programmatic ad company,
The Trade Desk (NASDAQ:
TTD) has returned close
to 2,000% to investors since its IPO in 2017. But TTD stock is also
down 48% from all-time highs, valuing it at $28.17 billion by
TTD stock is an ad-tech company
and offers a buy-side platform enabling marketers to plan, measure
and optimize targeted ad campaigns across multiple digital
channels. The Trade Desk is an independent platform, suggesting it
has no incentive to allocate inventory to ad buyers, allowing the
company to onboard companies such as
Walmart (NYSE: WMT) and Walt Disney
DIS) in the connected TV
In the last four quarters, TTD
increased sales by 34% year-over-year to $1.4 billion.
Comparatively, its free cash flow surged 70% to $476 million. But
global ad spend is forecast to touch $1 trillion in the near
future, providing enough room for the company to accelerate
TTD stock is valued at 20 times
forward sales and 57.7 times forward earnings, which is very steep.
But its sales are forecast to rise from $1.2 billion in 2021 to $2
billion in 2023.
Analysts remain bullish on TTD
stock and expect shares to rise by 50% in the next year.
Historical Stock Chart
From Dec 2022 to Jan 2023
Historical Stock Chart
From Jan 2022 to Jan 2023