Sales Acceleration As A Bullish Indicator (Cybersecurity Stocks)
One indicator I've always found useful for portfolio allocation is sales acceleration. Analysts and management often guide declining YoY % sales growth, and in rare cases, the guide doesn't line up with other indicators. When sales accelerate, it can be a powerful catalyst for stock-price action, manifesting in some momentum or a rally.

See the chart here of cybersecurity stocks below:

Old-guard - (Value style)

New Disrupters - (Growth style)
  • $ZS - Zscaler
  • $CRWD - Crowdstrike
  • $S - SentinelOne

Cutting short, old guards have outperformed disrupters/high-growth substantially over the last year. A big variable was the rotation to value from growth, but I also think another factor for substantial outperformance was sales acceleration. One would expect older cybersecurity to coincide with performance against the QQQ. However, stocks like Palo Alto and Fortinet flew past the benchmark delivering serious alpha. Both went from low ~20% YoY growth to ~30% YoY growth over the last few quarters.

Quarterly YoY % growth (top), and 1-yr return (bottom)

The graph above shows some of these relationships. Lines going higher show sales accel across quarters on a YoY basis, and down means deceleration. I'll be the first to mention that this relationship is not perfect, and there are many reasons for the performance discrepancy above - but it's worth thinking about.

If one can find sales acceleration above consensus for a stock or two on one's list, there are mid-term opportunities out there to capitalize on. For a growth stock, it means the future is coming through faster. In many cases, the rally is strong enough to overshoot fundamental rationale and produce outsized returns over the mid-term.

P.S. Using this theory, $OKTA is looking like an interesting candidate at the moment.
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Upcoming Earnings Calendar (Feb 28th - Mar 4th)
Hey guys! Here's the upcoming earnings calendar! Two of my holdings, $SE and $SOFI report next week, so I'll be paying significant attention to both. Other than that, I'm also interested in seeing what retailers like $TGT $BBY and $COST have to say about supply chain issues and inflation.

Good luck to everyone!

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

MON:


TUE:


WED:


THU:


FRI:
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Cybersecurity is in the early innings of a long run!
The market Cap of cybersecurity companies has increased 4 times in the last 5 years.


Cybersecurity startup funding has increased 3 times in the last year.

Currently, cloud and internet companies are the biggest spenders on cybersecurity, this is just the beginning, the opportunity is incredibly huge.

Big spenders prefer cybersecurity platforms as compared to one-trick products to solve all their problems with one platform.

What are some of your favorite cybersecurity names?
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That's some crazy growth!

Okta and Crowdstrike are my favorites at the moment.

But I can also tell you my least favorite: FireEye $FEYE

If you've ever looked into them, I'd be curious to hear your thoughts on why they've done so poorly.

(They recently rebranded and changed their name to 'Mandiant' and changed their ticker to $MNDT)
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December 1st Earnings Call Highlights! (CRWD, SNOW, OKTA, SPLK)
Yesterday several high-profile tech companies reported earnings. Despite the recent sell-off in growth stocks, it's clear a lot of these companies are still performing at a high level.


Valuations, which were my main concern a few months ago, are compressing. I believe now is the time to start scaling into positions into high conviction names.
Upcoming Earnings Calendar (Nov. 29 - Dec. 3)
Happy Thanksgiving everyone!

This week was light on earnings reports, but next week is shaping up to be very interesting in the stock market. None of my holdings report, but I'm still interested in listening to the $CRM, $CRWD, $SNOW and $DOCU earnings calls.

I'm also hoping we get post-earnings commentary on $CRM from @gkotak, $DOCU from @invesquotes and $OKTA from @tolvkin so that I can learn more about these companies.

Remember, if you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

Monday:

Tuesday:

Wednesday:

Thursday:

Friday:
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Eric Pelnik's avatar
$273.5m follower assets
Earnings this week
📞Which calls are you most excited about?

Monday, May 31st
$AMSC American Semiconductor
$CBRL Cracker Barrel

Tuesday, June 1st
$ZM Zoom Video Communication
$CPB Campbell Soup
$CGC Canopy Growth
$MDLA Medallia

Wednesday, June 2nd
$AAP Advance Auto Parts
$CLDR Cloudera
$SJM JM Smucker
$DOCU DocuSign
$ESTC Elastic
$LE Lands' End
$SPLK Splunk
$SMAR Smartsheet
$RH Restoration Hardware

Thursday, June 3rd
$LULU Lululemon
$FIVE Five Below
$CRWD Crowdstrike
$AVGO Broadcom
$MDB MongoDB
$PD Pagerduty
$WORK Slack
$SUMO Sumo Logic

Friday, June 4th
None of interest

Sources: Business Insider, Google Finance, Yahoo Finance
Eric Pelnik's avatar
$273.5m follower assets
Earnings this week
Which calls are you most interested in listening to?

Monday, March 1st
$APPF AppFolio
$ZM Zoom Video
$WKHS Workhorse Group
$LMND Lemonade
$MELI MercadoLibre

Tuesday, March 2nd
$BOX Box Inc
$HPE Hewlett Packard
$TGT Target Corp
$FUBO Fubotv
$URBN Urban Outfitters
$JWN Nordstrom
$VEEV Veeva Systems
$SE Sea
$AZO Autozone

Wednesday, March 3rd
$RRGB Red Robin Gourmet Burgers
$WEN Wendys
$DLTR Dollar Tree
$VRM Vroom
$SNOW Snowflake
$SPLK Splunk
$YEXT Yext
$OKTA Okta

Thursday, March 4th
$KR Kroger
$COST Costco
$GPS Gap
$MDLA Medallia
$SDC SmileDirectClub

Friday, March 5th
$BIG Big Lots

Sources: Business Insider, Google Finance, and Yahoo Finance
MONDAY : ZM MELI LMND
TUES : HPE TGT VEEV SE AZO URBN
WED : WEN DLTR SPLK OKTA SNOW
THURS : KR COST GPS SDC
FRI : BIG
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Colin's avatar
$13.5m follower assets
Both Fastly & Datadog have been consolidating around the $90 price range since Q2.

$FSLY reported disappointing Q3 earnings with annual revenue growth at 42% after their largest customer, TikTok left their platform. Q4 will be the first earnings after their Signal Sciences acquisition. Additionally, 5G rollout is gaining acceleration with airwave auctions happening globally. 5G should really enhance growth of Fasly's Compute @edge platform.

$DDOG beat Q3 revenue estimates, growing 61% y-y and guided inline to expectations, but sold off down to $80/share. $SPLK has been aggressively acquiring companies like Plumbr, Rigor, and Flowmill in Q4 to build out its observability suite.

$FSLY closed today @ $104.13
$DDOG closed today @ $103.34

Which stock ends higher in price at the end of 2021?
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I sold both $FSLY and $DDOG and invested the money back into $NET. Largely because of consolidation of stocks; I am trying to going from 40+stocks to 20 stocks. $DDOG while growing great I am not sure how much it can grow :)
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