Today is a big day for Aggressive Growth Stocks. S&P 500 expanded 0.6% to 3,960, while NASDAQ increased 1.6% to 11,898. The growth was led by tech stocks.
Speculative growth stocks soared a day after the NASDAQ 100 had a bullish breakout yesterday. The big winners of the day were:
- HubSpot (HUBS): +9% to $309
- Datadog (DDOG): +9% to $101
- Bill.com (BILL): +9% to $139
- Atlassian (TEAM): +11% to $213
- Unity Software (U): +13% to $41
In other news, Autodesk (ADSK) reported good growth profits the past qtrs, but the stock has been on a free fall.
Tweet of the Day
$TSLA Net Cash Flow of 847 mil is MISLEADING. 936 mil comes from BTC Sale. Seems like @elonmusk asked their acocuntants to make sure they have positive cash flow this Q. pic.twitter.com/4JSokP06aM
— Supreme Bagholder (@FbBagholder) July 20, 2022
Tesla (TSLA) reported earnings after hours.
Chart of the Day
Our chart of the day is the one-year chart of ADSK from July 9 when the stock was at $180. Notice the nice profit growth numbers along the bottom. Qtrly profit Estimates look great.
ADSK is a global leader in 3D design software. It allows customers to design, fabricate, and build anything using its advanced computer software. Example industries include automotive, machinery, consumer products, and building products.
ADSK numbers are good, even though the stock has been on a free fall. The stock dropped from $329 to $180 (-45%) since my research report 4 qtrs ago. In the earnings call, it was mentioned that ADSK isn’t a cyclical business anymore. And I have to agree. The design software company grew profits an average of 29% the past four qtrs, and estimates are for 26% average growth the next four qtrs. The company has been landing big customers. Last qtr they closed 8 deals of over $500,000, two of which were over $1 million. But analysts took down profit estimates due to the current economic environment. 2022 annual earnings estimates decreased from $6.77 to $6.55.
ADSK is part of the Growth Portfolio. My Fair Value P/E remained at 32 this qtr as growth stocks have gotten their multiples (P/Es) reduced in this rough stock market.
