- The thesis presented in this article is that high growth names are able to produce sizeable returns despite the headwinds of inflation and higher interest rates.
- The thesis is supported by notable valuation compression in many names that has proceeded unremarked through much of 2021.
- In addition, most high growth companies are expanding their TAMs by aggressive moves into what are best described as adjacencies.
- Further, CAGR estimates for high growth companies have improved, and the evidence suggests that this trend will continue.
- And while not universal, many high growth IT vendors have been able to enhance their profitability and to generate surprisingly high free cash flow margins.
For further details see:
High Growth IT Stocks In Land Of Inflation And Higher Interest Rates: A Shopping List