FSLY - 3 Contrarian Growth Stocks To Consider For Outsized Returns
- Although the tech sector has led the market on a one-month basis and performed reasonably well YTD, three growth stocks exhibit strong potential from a contrarian take.
- AYX, FSLY, and SPLK have been punished by the market, with all three down over 30% on a one-year basis, with some issues arising from growth slowdowns.
- AYX has seen a fair decline in revenue growth rates, yet could return to >20% y/y growth from a shift to cloud deployments and trades at an attractive 6.5x EV/sales.
- FSLY has seen a failure to exceed consensus revenue estimates impacting its forward revenue growth, but it excels in growing revenue per customer with long-term tailwinds.
- SPLK suffered during FY21 due to non-cloud concentration, but a shift to cloud is showing promise and growth, and 5.8x FY24 EV/sales multiple is attractive for this leader.
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3 Contrarian Growth Stocks To Consider For Outsized Returns