The market rallied again yesterday, with all indexes – and almost all sectors – closing higher.
While it’s still a little early to tell, there is increasing evidence that the August pullback is coming to a close – paving the way for a sunnier September.
With that in mind, today’s stock pick is a high-flying tech stock that is not only still going strong…
But actually defied this month’s pullback thanks to a strong second-quarter earnings report.
Market momentum is clearly on its side, and its stock is also up nearly 40% on the year.
As for what it reported in its latest earnings – we’re talking earnings about 70% higher than consensus estimates that represented a nearly eight-fold increase from the year before.
So, if you’re looking for a large-cap growth stock that has defied the pullback and has strong momentum on its side…
Name and Ticker (Revealed)
The name of the ONE stock (ticker symbol and all) that has helped over 170,000 people discover how to gain their financial freedom…
Splunk Inc. (SPLK)
Splunk is a software company whose machine learning-powered products help businesses turn machine-generated data (think data from web servers and logs) into real-time actionable information. In industry jargon, it provides what is called an “observability platform”.
Splunk’s customer base includes names from the Mclaren F1 racing team to Domino’s Pizza. It also counts about 90% of Fortune 100 companies as its clients. And it’s still growing its customer base, ending the second quarter with 834 clients with annual recurring revenues of about $1 million (compared to 723 in the year before). In total, it has over 15,000 customers.
On top of all that, it just released Splunk AI in July, which uses generative AI to help its clients interact with its platform and better understand its outputs. This makes its platform significantly more user-friendly, potentially expanding its reach even further.
Splunk is currently trading at a price-to-sales ratio of 5.2x – which is actually a low for the company since it went public in 2012. Combine this with the fact that its stock price still down over 45% from its 2020 high – plus all the other aforementioned factors – and you have a very promising growth stock on your hands.
To your wealth,
Felix @ Ace of Investing