3 High-Growth Tech Stocks to Buy Before Year-End The tech sector is set for significant growth as digital transformation accelerates, driven by AI, infrastructure investments, and demand for secure solutions. Thus, fundamentally sound stocks Tenable Holdings (TENB), Box...
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The tech sector is set for significant growth as digital transformation accelerates, driven by AI, infrastructure investments, and demand for secure solutions. Thus, fundamentally sound stocks Tenable Holdings (TENB), Box (BOX), and Teradata (TDC), which exhibit stellar growth, might be ideal investments. Keep reading.
As the technology sector advances, emerging trends are fueling substantial growth in the devices and cybersecurity markets. The rising demand for digital transformation and secure cloud solutions is transforming how businesses function and safeguard their assets. In this dynamic environment, top tech stocks like Tenable Holdings, Inc. (TENB), Box, Inc. (BOX), and Teradata Corporation (TDC) stand out as strong investment opportunities before the year ends. These companies have also delivered impressive growth CAGRs over the past year.
Global IT spending reached $5.27 trillion this year, driven by rising demand for cloud solutions, cybersecurity, automation, and data management. Both large corporations and SMEs are investing in IT services to improve operations and efficiency, highlighting strong growth prospects and optimism in the tech market.
Driven by rapid technological advancements, growing adoption of smart devices, and increasing demand for innovative, high-performance solutions, the global devices market is poised for significant expansion. According to recent forecasts, the global revenue in the devices market is set to grow by $101.30 billion, exhibiting a CAGR of 14.3% from 2024 to 2028, reaching a new peak of $807.2 billion by 2028.
With these favorable trends in mind, let's take a closer look at the tech stocks:
Tenable Holdings, Inc. (TENB)
TENB offers cyber exposure and vulnerability management solutions, enabling organizations to secure IT, cloud, and operational environments across global markets. Key products include Tenable Vulnerability Management, Tenable Cloud Security, and Nessus.
TENB's revenue has grown at a CAGR of 19.8% over the past three years, and its total assets have risen by a CAGR of 12.2% over the same time frame.
On September 18, 2024, TENB announced the launch of Tenable Enclave Security, a solution designed for highly secure, classified, or air-gapped environments. Supported by Tenable Security Center, it offers risk assessment and contextual insights to help organizations identify and mitigate exposures proactively.
On September 10, TENB introduced AI Aware, an advanced detection feature in Tenable Vulnerability Management that identifies vulnerabilities in AI applications, libraries, and plugins. This tool enables organizations to manage AI-related risks effectively without disrupting business operations.
During the fiscal third quarter that ended September 30, 2024, TENB's revenues increased 12.7% year-over-year to $227.09 million. Its non-GAAP income from operations grew 23% from the year-ago value to $44.98 million. In addition, the company's non-GAAP net income and non-GAAP EPS came in at $39.32 million and $0.32, up 42.1% and 39.1% over the prior-year quarter, respectively.
Analysts expect TENB's EPS and revenue for the quarter ended December 31, 2024, to increase 37.8% and 8.7% year-over-year to $0.34 and $231.82 million, respectively. It surpassed the Street EPS and revenue estimates in each of the trailing four quarters.
Over the past year, the stock has gained 2.9% to close the last trading session at $40.79.
TENB's POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
TENB has an A grade in Growth and a B in Quality. It is ranked #4 out of 20 stocks in the B-rated Software - Security industry.
Beyond what we have stated above, we have also given TENB grades for Momentum, Value, Stability, and Sentiment. Get all the TENB's ratings here.
Box, Inc. (BOX)
BOX offers a cloud content management platform for secure collaboration, content sharing, and workflow management across devices. Serving industries such as finance, healthcare, government, and legal, it supports around 100,000 organizations globally in 25 languages.
BOX's revenue has grown at a CAGR of 9.3% over the past three years and its EBITDA has risen at a CAGR of 25.5% over the same time frame.
On November 12, 2024, BOX announced a partnership with Slalom to help enterprises use advanced AI and machine learning to gain insights from their content. Together, they aim to modernize workflows, improve collaboration, and transform content management processes for Box's customers.
On November 7, BOX announced that the National Transportation Safety Board (NTSB) had chosen the company as the cloud platform for its Digital Content Delivery Platform. Box will enable NTSB investigators to collect and share investigation-related documents, audio, and video files with citizens via NTSB.gov.
In the fiscal second quarter ended July 31, 2024, BOX's revenues increased 3.3% year-over-year to $270.04 million. Its non-GAAP operating income was $76.69 million, up 18.5% from the year-ago value. Moreover, its non-GAAP net income attributable to common stockholders and non-GAAP net income per share attributable to common stockholders stood at $ 64.74 million and $0.44, respectively, representing increases of 18.3% and 22.2% over the prior-year quarter.
Street expects BOX's revenue and EPS for the quarter ended October 31, 2024, to increase 5.2% and 17.4% year-over-year to $275.10 million and $0.42, respectively. It surpassed the consensus EPS and revenue estimates in three of the trailing four quarters.
The stock climbed 30.9% year-to-date and has returned 29% over the past year, to close the last trading session at $33.53.
BOX's POWR Ratings reflect strong prospects. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has an A grade for Growth and Quality and a B for Value. It is ranked #37 out of 77 stocks in the B-rated Technology - Services industry.
To access BOX's Momentum, Stability, and Sentiment ratings, click here.
Teradata Corporation (TDC)
TDC offers Teradata Vantage, a multi-cloud data platform for enterprise analytics, along with consulting and support services to optimize data use across industries like finance, healthcare, and retail worldwide.
TDC's EBITDA has grown at a CAGR of 13.1% over the past five years and its EBIT has risen at a CAGR of 26.3% over the same time frame.
On October 8, 2024, TDC established a collaboration with NVIDIA Corporation (NVDA) to integrate NVIDIA AI into the Teradata Vantage platform. This partnership aims to enhance the platform's capabilities for large, global organizations using both public and private clouds.
TDC's total revenue increased marginally year-over-year to $440 million in the fiscal 2024 third quarter that ended on September 30, 2024. The company's non-GAAP operating income in at $99 million, up to 57.1% from the year-ago value. Its non-GAAP net income came in at $67 million, up 55.8% year-over-year, while its non-GAAP EPS grew 64.3% from the year-ago value to $0.69.
Street expects TDC's revenue for the fiscal year (ending December 2024) to be $1.76 billion. Its EPS for the same quarter is expected to grow 12.8% from the prior year to $2.33. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters.
Shares of TDC have gained 8.8% over the past five years to close the last trading session at $28.97.
TDC's bright prospects are apparent in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has an A grade for Growth, Value, and Quality. Within the Technology - Services industry, it is ranked #2.
Click here to see TDC's ratings for Momentum, Stability, and Sentiment.
What To Do Next?
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TENB shares were unchanged in premarket trading Monday. Year-to-date, TENB has declined -11.44%, versus a 24.40% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.
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