From Nasdaq:

Growth stocks with potential for high long-term returns come from various industries and offer portfolio diversification to reduce risk. Meta Platforms, formerly Facebook, and Hubspot are two such stocks currently rated a “strong buy” by Wall Street analysts. Meta’s AI innovation and Hubspot’s improving financials contribute to their high ratings.

Meta Platforms’ stock soared 194% last year, with its social media platforms generating massive revenue and profits. It’s stock is up 33% year-to-date, beating the S&P 500. The company’s augmented and virtual reality products are showing strong growth, and it plans a significant investment in AI for 2024. Analysts predict its revenue and earnings will rise by 17.2% and 34.4% for the full year 2024. The stock is rated a “strong buy,” with an average target price of $497.48.

HubSpot’s revenue surged 26% to $557.6 million in Q3, with increased customer satisfaction and 100.7% stock price gain in 2023. The acquisition of Clearbit aims to provide high-quality data to customers. Analysts expect an 18% year-over-year increase in Q4 revenue and predict a 17.8% rise in 2024 revenue. The stock is rated a “strong buy,” with a mean target price of $594.79 and high target price of $697.

Hubspot is trading at 94 times forward 2024 earnings and 12 times forward sales, while peer Salesforce is trading at 35 times forward earnings. It’s valuation is steep, placing it in the high-risk, high-reward investment category. With its high earnings growth trajectory and profitable projections, it’s worth considering for a small position in cloud software stocks.



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