The Federal Reserve adopted a hawkish stance in March last year and began raising interest rates to curb sharp inflation. The good news is that the central bank’s efforts appear to be bearing fruit, as recent data suggests lower inflation.
Consumer price inflation will ease to 6.5% in December 2022 from 9.1% in June last year. Of course, this number is still above the Fed’s inflation target of 2%. This means that further rate hikes are likely. We have found that the high interest rate scenario is unfavorable for the stock market. But with inflation falling, it’s possible the Fed will cut interest rates in his 2023.
This could trigger a bull market, so now might be a good time to stock up. Crowdstrike Holdings (CRWD -3.61%) When dutch brothers (broth 0.64%) — Two fast-growing companies hit in the past year.
1. Crowdstrike Holdings
CrowdStrike Holdings’ stock has fallen 37% over the past year, but the company’s growth suggests it may regain momentum. The cybersecurity firm’s customer base is growing rapidly, creating a long-term sustainable revenue stream.
This is evident from CrowdStrike’s reported annual recurring revenue (ARR) of $2.34 billion for the third quarter of fiscal 2023 (three months ending October 31, 2022), down 54% year over year. % Increased has. This metric, which refers to the annualized value of active customer contracts at the end of a specified period, grew at a faster pace than CrowdStrike’s actual revenue growth of 53% during the quarter to $581 million .
Additionally, CrowdStrike’s ARR last quarter was well above the company’s $2 billion in revenue over the past 12 months, indicating it is on track to maintain strong growth. The growth of the company’s subscription business has played a key role in CrowdStrike building a solid revenue pipeline. Subscription revenue last quarter was $547 million, up 53% year-over-year. This was due to a 44% year-over-year increase in subscriber numbers.
The rapid growth in subscriber revenue compared to subscriber growth suggests that CrowdStrike’s customers are spending more on their services. In fact, 60% of the company’s customers use more than 5 of his modules.
More importantly, CrowdStrike is in such a huge end-market opportunity that it should be able to sustain such an impressive growth rate. The company expects the total market size it can serve to reach about $98 billion by 2025, which means it’s tapping only about 2% of the available opportunities. So it’s no surprise to see why CrowdStrike’s top line is expected to see impressive growth in the future.
CRWD Earnings Forecast for Current Fiscal Year Data with YCharts
CrowdStrike is currently trading at the lower end of its 52-week range, with earnings expected to grow at an annual rate of 59% over the next five years, giving investors the opportunity to invest in the fast-growing cybersecurity stock before going bankrupt. You may want to purchase to Get out and start rising.
2. Dutch Brothers
Drive-thru coffee chain Dutch Brothers is aggressively expanding its business, which is reflected in its growth rate. The company announced its preliminary results for the fourth quarter of 2022 on Jan. 9, with a healthy earnings outlook for 2023 of $950 million to $1 billion.
That’s an impressive 30% above Dutch Bros’ estimated 2022 topline of $732 million. The company plans to open at least 150 stores in 2023, up from his 133 stores last year. At the same time, Dutch Bros expects his low-single-digit same-store sales growth this year. Improving same-store sales growth should be good for the stock. This is because the company’s Achilles heel has been sluggish growth in same-store sales despite price increases.
Dutch Brothers’ consolidation strategy, which includes opening multiple locations near each other to attract customer attention and reduce delivery times and costs, has led to cannibalization of same-store sales. That’s why Dutch Bros’ same-store sales declined 2.1% year-over-year in Q4 2022. This is because new store openings have led to the transfer of sales from existing stores to new stores.
The good news is Dutch Bros can expect low-single-digit same-store sales growth over the next five to 10 years, with annual store growth in the mid-teens. The company expects this combination of same-store sales growth and store count growth to deliver approximately 20% annual revenue growth over the long term. In addition, Dutch Bros expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to outpace revenue growth.
All of this explains why analysts expect Dutch Brothers’ annual revenue growth to be around 20% over the next five years. More importantly, investors are now getting big deals on the stock as it trades at just 2.3x sales after last year’s sharp decline. this is, S&P 500has a price-to-sales ratio of 2.4.
Given Dutch Brothers’ healthy growth levels and bright long-term prospects, investors may want to buy this fast-growing company before it takes off and becomes expensive.
