Stocks to buy

Path to Wealth: 3 Stocks with Explosive Growth Prospects

The S&P 500 and Nasdaq appear to be entering another rally toward the end of 2023. The October CPI report, which came out in mid-November, and other labor market data indicated that inflation and unemployment were easing, reducing the pressure on the Fed to raise interest rates further. This rally has led to the emergence of these growth stocks to buy.

With the macro environment less cloudy than it used to be, you may want to consider investing in compelling growth stocks that can deliver superior returns in the long run.

Here are three stocks with explosive growth prospects that deserve your attention.

CrowdStrike (CRWD)

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CrowdStrike (NASDAQ:CRWD) is a leading provider of cloud-based endpoint protection and threat intelligence services. The company offers a comprehensive platform that leverages artificial intelligence, behavioral analytics, and threat intelligence to detect and prevent breaches. CrowdStrike reported impressive results for Q3 FY2024, beating analysts’ expectations on both revenue and earnings. The company grew its revenue by 34% year-over-year to $786 million, driven by strong demand for its subscription-based products and services.

Additionally, CrowdStrike saw strong growth for its AI-native Falcon XDR platform, which helps connect data from siloed security solutions so they can work together to improve threat visibility and reduce the length of time required to identify and respond to an attack.

Although the demand environment has not yet fully normalized for cybersecurity solutions, CrowdStrike has shown impressive growth and could continue to do so as the global economy improves. Shares have climbed more than 123% YTD, which exemplifies how holding this stock for the long term can contribute to significant wealth generation.

GitLab (GTLB)

An image of a laptop, tablet, and phone with various software and tech imagery on their screens

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GitLab (NASDAQ:GTLB) is a software company that offers a single platform for the entire DevOps lifecycle, from planning and coding to testing and deploying.

In particular, the company’s platform enables developers to collaborate more efficiently and deliver software faster. GitLab’s platform also leverages AI to enhance efficiency and help reduce cycle times for software development.

The company reported strong results for its Q3 FY2024 period, with revenue increasing organically by 38% year-over-year to $139.6 million. GitLab also improved its non-GAAP and GAAP gross margins and non-GAAP earnings per share.

The company has ultimately come a long way from providing point solutions to offering a full-service platform. These financial results underscore how GitLab’s shift in gears has succeeded so far. Adopting novel technologies, including artificial intelligence and machine learning, will require an efficient software development process, and GitLab’s platform will benefit from the long-term demand there.

Sprinklr (CXM)

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Sprinklr (NYSE:CXM) is a software company that helps brands manage their customer interactions across various digital channels, such as social media, messaging, email, and the web. Moreover, the company’s platform leverages artificial intelligence to analyze customer feedback, generate insights, and optimize engagement.

Sprinklr reported solid results for the second quarter of their fiscal year 2024, with total revenue growing by 18% year-over-year to $178.5 million while subscription revenue increased by a larger 23% to $163.5 million. The strength in year-over-year revenue growth has also resulted in improved operating and bottom-line profitability as well.

During their second-quarter earnings announcement, management also boosted their financial outlook. The company expects to grow its revenue by 16.3% to 16.6%, between $719 million and $721 million in fiscal 2024. Shares have just about doubled since the start of the year.

On the date of publication, Tyrik Torres did not have (either 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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

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