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ng able to identify market leaders as they emerge is one of the best skills for traders and investors to work on developing. It’s a tactic that keeps you focused on only owning the best of the best in the market in order to maximize your gains and take advantage of institutional buying which drives prices higher. Oftentimes, these stocks are newer names that perhaps haven’t gotten a lot of exposure yet from financial media, which means being able to locate new market leaders early can lead to massive alpha for your portfolio.
Pinpointing these types of stocks is easier said than done, which is why we’ve put together a brief overview of 3 new market leaders to buy on dips below. These are all disruptive companies that are showing serious relative strength in the market and could turn into monster winners over the long term. Let’s take a deeper look at these standout stocks below.
First up is Ambarella, a developer of semiconductor processing solutions for video that enables HD video capture, sharing, and display. The company’s products have plenty of upside given their applications in video security, advanced driver assistance systems, electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving, and robotic applications.
Ambarella’s truly fascinating artificial intelligence technology, which falls under the category of computer vision, enables edge devices to visually perceive the environment and make decisions based on data that is collected from cameras, which could completely revolutionize both the surveillance and automotive industries.
The stock has been soaring following the company’s latest earnings report, which saw Ambarella report Q2 revenue of $79.3 million, up 58% year-over-year, and investors should be encouraged by the fact that the company boosted its Q3 sales estimates. Although chip supply constraints might be an issue in the near term, the immense upside for the company in the home security camera market and autonomous driving space make this a new market leader absolutely worth adding on dips.
Next, we have a software company that is changing the way that teams collaborate in the workspace and playing an essential role in how businesses operate post-pandemic. Atlassian Corporation’s products include project planning and management software, collaboration tools, and IT help desk solutions that ensure companies are working with maximum efficiency at all times. What’s great about this company’s software is that almost any business in the world can benefit from implementing it, which means it is attractive to companies of all different sizes.
The stock has been on fire following
Atlassian Corporation’s latest earnings results and has been showing true leadership over the last few trading sessions as the market faltered. The company’s top line grew by 30% year-over-year in Q4 to reach $560 million, and investors should be intrigued by the continued customer growth as the company added over 23,000 new customers last quarter. Investors can likely bank on this disruptive software company to continue taking market share from legacy providers, and as more companies pursue digital transformations one can only anticipate great things from Atlassian over the next few years.
One of the hottest trends in finance right now is the rise of “buy now, pay later” products and services, and Affirm Holdings stands out as a leader in that space. The company just reported very solid earnings and announced a big partnership deal with Amazon that could send shares much higher in the coming weeks. If you aren’t familiar with buy now, pay later services, they essentially help consumers split up the payments for purchases into installments and are disrupting the credit card and consumer lending industries.
Affirm Holdings offers consumers APR payment options and interest-bearing loans and also provides a point-of-sale payment solution and merchant commerce solutions to help retailers avoid swipe fees and lengthy ACH transfers. The company just delivered total revenue growth of 71% year-over-year and saw its Q4 gross merchandise volume grow by 106% to reach $2.5 billion. With Affirm’s active merchants growing by 412% in Q4, it’s clear that the company’s network is expanding at a rapid pace and should continue benefitting from rising demand in the buy now, pay later space. This is a market-leading fintech stock that stands out as a potentially massive long-term winner, so consider adding shares on dips if you are interested in exposure to a growing company in a red hot industry.
Before you consider Affirm, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Affirm wasn't on the list.
While Affirm currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
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