திங்கள், 16 செப்டம்பர், 2019

Cloud stocks and Rule of 40

How to pick growth stocks?

Rule of 40 = revenue growth + profit margin . Negative is ok -15+27  = 42 same way -22 + -31 = 53 Using this metric, a company must have either rampant growth or some profits, but it can't lack both.

Twilio , Adobe Systems  and ServiceNow topped the fundamentals list using this method.

As for valuation, Cramer said valuations less than 10 times earnings are reasonable in this environment. Adding valuation to the mix, he concluded that only 11 cloud stocks made the cut. In addition to Twilio and Adobe, Five9  , Workday  , Salesforce.com   , Splunk  , RingCentral  , VMware (  , Zendesk  and Dynatrace are worthy of a spot in your portfolio





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IBD information to Buy to Sell etc

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