From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that cause volatility.
Unfortunately, the rich prices have haunted them over the past six months as the industry has shed 2.3%. This performance was discouraging since the S&P 500 returned 5%.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
SNOWFLAKE INC (NYSE:SNOW) meets Minervini’s Trend Template with strong technicals and high-growth fundamentals, making it a candidate for momentum investors.
July is expected to be a hot month, but not hotter than the markets for these stocks, which are rising due to factors such as results, guidance, and analysts.
Morgan Stanley analyst Sanjit Singh assumed Snowflake with an Overweight rating on Tuesday and set a price target of $262, citing improvement in secular growth trends.
The stocks in this article are all trading near their 52-week highs.
This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
Intapp (INTA) partners with Snowflake (SNOW) to enhance analytics for client firms using DealCloud. JPMorgan analyst optimistic about Snowflake's growth. Snowflake stock up 64% in past year.
