Here is a rewritten version of the article:
The current bull market in the Nasdaq Composite, following a significant dip during the 2022 bear market, presents exceptional opportunities for savvy investors. While artificial intelligence (AI) stocks have contributed significantly to the Nasdaq’s surge, many excellent growth prospects continue to fly under the radar. Here are four promising growth stocks you won’t want to miss out on:
1. Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG): Alphabet, the parent company of Google, is a leading contender in the tech sector. Though cyclical due to its heavy reliance on advertising, Alphabet boasts impressive long-term sales and profit growth potential. Its Google Cloud segment, the third largest in the industry, is already generating substantial returns, having reached a whopping $38 billion in annual run-rate sales. Despite its recent rise to new highs, Alphabet’s share price is still reasonably priced relative to its prospective earnings.
2. PubMatic (NASDAQ: PUBM): PubMatic, a cloud-based programmatic adtech firm, has experienced remarkable sales and profit growth. The company’s focus on digital advertising, which is witnessing a fast-growing trend, allows it to thrive. In fact, during the quarter that ended in March, its omnichannel video sales, which include connected TV (CTV), grew by an impressive 3%. Moreover, management’s decision to develop its cloud-based infrastructure instead of opting for an existing third-party platform is commendable since it helps the company retain more of its revenue as it expands. PubMatic’s balance sheet, which currently stands at $174.1 million in cash, cash equivalents, marketable securities, and zero debt, further strengthens its position.
3. NOV (NYSE: NOV): Though some investors are repelled by the notion of investing in the oil and gas industry, NOV offers a compelling investment opportunity. Due to the historical demand drop-off for energy commodities triggered by COVID-19 lockdowns, the industry took a significant hit. However, as NOV’s CEO stated, there’s almost an ideal growth scenario for the company. Three years of reduced capital spending by global energy majors, combined with Russia’s invasion of Ukraine, has led to a scarcity of oil supply, and the spot price of crude oil is expected to remain above its historic average for the foreseeable future. NOV can potentially benefit from increased drilling demand due to this uncertainty. Additionally, NOV’s ability to cater to the needs of both onshore/offshore drillers and fracking companies, while also benefiting from onshore/offshore wind turbine installations, further enhances its position.
4. Block (NYSE: SQ): Fintech giant Block, formerly known as Square, has faced increased competition in the digital payment arena, but its key performance indicators have held strong. The company’s Square ecosystem, which handles digital payments, is growing rapidly, having processed $50.5 billion in gross payment volume (GPV) during the quarter that ended in March, equivalent to $202 billion annually. More impressively, around 39% of the GPV came from large enterprises with over $500,000 in annualized GPV, highlighting the increasing significance of the segment’s revenue potential. Digital payments platform Cash App, which had 57 million monthly transacting active customers and 24 million Cash App active cardholders in the same quarter, is set to generate even more cash flow for Block in the future. Experts forecast Block’s earnings per share (EPS) to more than triple over the next three years, making it a standout option for growth investors.
It’s essential to note that The Motley Fool’s Stock Advisor analyst team recently identified ten stocks that they believe are the most profitable investment choices for investors to purchase at this time. Alphabet wasn’t included in this list, indicating that investors may find better options among the ten selected stocks. The Stock Advisor service, which has quadrupled the return of the S&P 500 since 2002*, provides investors with detailed guidance on building a portfolio, regular updates from specialists, and two fresh stock recommendations every month.
*Stock Advisor results as of May 6, 2024
Sean Williams owns positions in Alphabet, Block, and PubMatic. The Motley Fool has positions in and recommends Alphabet and Block. The Motley Fool has a disclosure policy.
These four growth stocks you’ll regret not purchasing in the new Nasdaq bull market were initially published by The Motley Fool.
Here’s how you can rephrase the section on NOV:
The oil and gas industry has been a source of unease for some investors over the past few years. While the industry encountered difficulties during the initial stages of the COVID-19 pandemic, NOV offers an exciting investment prospect. According to NOV’s CEO, the current situation presents an almost perfect growth scenario for the company. The three-year period of decreased capital expenditure by global energy majors, combined with Russia’s invasion of Ukraine, has produced a scarcity of oil supply. The spot price of crude oil is anticipated to remain above its historic average for an extended period. NOV’s ability to satisfy both onshore/offshore drillers and fracking firms, in addition to benefiting from onshore/offshore wind turbine installation, reinforces the company’s position. NOV’s balance sheet, which currently holds approximately $4 billion in backlogged equipment orders, further strengthens its standing.
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