I'm a big fan of software-as-a-service (SaaS) companies, but some of those stocks are pricey, even after a tech stock sell-off over the past six months. For instance, Snowflake is down 44% from its 52-week-high but still trades at 54 times sales. CrowdStrike is down 10.7% from all-time highs but still goes for 53 times sales. And Shopify is down 22.8% from highs but still sells for 48 times sales. A lot of optimism, and future sales, are already priced into those stocks.
For investors who aren't optimistic -- or who want to diversify to stay on the safe side -- here are a couple of cheaper names outside the tech sector that nonetheless have impressive growth rates.
Lovesac (NASDAQ: LOVE) , the modular furniture superstar, is trading at three times sales. Meanwhile, revenue jumped 40% in the most recent quarter. And Virtu Financial (NASDAQ: VIRT) stock is even cheaper, with its price-to-sales ratio of 1.2. Virtu had an amazing 103% revenue growth in its most recent quarter.
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Worried About the Tech Sell-Off? Consider These Safer Stocks