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Zuora (ZUO) and BlackLine (BL) Are Aggressive Growth Stocks

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As the aggressive growth stock strategist at Zacks Investment Research Brian Bolan looks for stocks that have a strong Zacks Style Score for Growth and a weak Style Score for Value. This week he has two internet software stocks that have some interesting characteristics.

Zuora (ZUO - Free Report) is a Zacks Rank #1 (Strong Buy) and it sports the growth divergence that Brian loves to see with an A for Growth and an D for Value in the Zacks Style Scores. When Brian sees that he knows he is on the right path as growth investors and value investors are looking for different ends of the spectrum.

This company helps small and mid sized business with revenue collection and insights into sales trends and their customers as well. The company has topped the Zacks Consensus Estimate in each of the last four quarters and Brian points out the big move on an absolute basis.

In the video Brian takes a look at the big move in operating margins over the last three quarters. He notes that the forward PE is pretty reasonable, and as sales increase along with margins then the valuation will improve.

Next up is BlackLine (BL - Free Report) Which is also a Zacks Rank #1 (Strong Buy) also shows a similar divergence in growth and value style scores that ZUO has. BlackLine (BL - Free Report) has a F for Value and a B for Growth.

This company provides technology platforms that are focused on financials and accounting. Banks are the customer focus for BL and they have been doing well over the last several quarters with higher interest rates and Brian notes that this stock is in the banking ecosystem.

Just as in all of his Aggressive Growth Zacks Rank Buy videos, Brian reviews the earnings history, earnings estimates, growth projections and valuation before taking a look at the chart.


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