The stock market sell-off is an unfortunate but inevitable part of being an investor. Over the past twenty years, S&P 500 A drop of 10% or more on 10 different occasions.but every past correct The U.S. market has ended a new bull run, and there’s no reason to believe this time will be any different. This means that the current situation is actually a buying opportunity for patient investors.
There are several ways to take advantage of this. Putting your money in an S&P 500 index fund will be the easiest and least risky because it gives you instant diversification. But if you prefer to pick individual stocks, Global e Online (GLBE -6.84%) and Axon Enterprise (axon 0.83%) Looks smart now.
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Global e Online
Global-e’s mission is to make business boundaries agnostic. Its platform integrates with businesses’ digital storefronts to improve the experience for international buyers. This means localizing languages, currencies and payment methods on a market-by-market basis, which helps improve international conversion rates and drive cross-border sales. Global-e also works with more than 20 shipping lines to provide fulfillment services to its merchants and handle the calculation and remittance of import duties and foreign taxes.
In delivering these services, Global-e captures a wealth of market-specific consumer data, creating a flywheel effect that should drive long-term growth. Specifically, each new piece of information makes its AI model better at optimizing conversion rates. Over time, this should bring more merchants to the platform.
Because of this value proposition, the young e-commerce company is growing rapidly. Revenue surged 65% to $76.3 million in the first quarter, driven by a strong performance in the U.S. market.In a less optimistic scenario, Global-e GAAP basis, it produces a negative free cash flow The first quarter was $11.6 million. However, the company has $188 million in cash and equivalents on its balance sheet and no long-term debt, which means it has the ability to invest heavily in growth.
In this regard, Global-e faces a huge market opportunity.Data shows that total cross-border e-commerce spending will reach $736 billion in 2023 Forest Research, driven by growth in online shopping and direct-to-consumer sales. For context, Global-e has contributed $1.6 billion in sales over the past year, which means it has captured about 0.2% of the addressable market.
Currently, Global-e stock trades at 11.7 times earnings, close to its lowest valuation as a public company.This is why it now looks like good time to buy.
Axon Enterprise
Axon is known for its Conducted Energy Device (CED), which is sold under the TASER brand. The company has long been the market leader in CED, with TASER sales up 16% in the first quarter. But revenue from the company’s newer software and sensors businesses, which account for most of its $52 billion addressable market, surged 48%.
Axon’s sensor ecosystem consists primarily of in-vehicle cameras and in-vehicle camera systems, both of which feed video and location data to its cloud-based software. This includes tools for digital evidence management, incident reporting and real-time situational awareness. These products improve efficiency, safety and transparency for clients such as law enforcement agencies, fire departments, emergency medical personnel, and commercial enterprises.
Financially, Axon went all out in the first quarter. Revenue rose 32% to $256 million, and the company reported a GAAP profit of $0.76 per diluted share, up from $0.75 per diluted share a year earlier. Even better, the company has the power to keep the momentum going.
Axon’s client relationships with 17,000 of the 18,000 law enforcement agencies in the US have helped it extend its CED leadership into body cameras and digital evidence management software. Building on this, the company recently added justice system software to its portfolio. Its new product, Attorney Premier, allows public defenders and prosecutors to manage and share digital evidence with police.
Axon’s expansion into justice system software is particularly savvy because it creates a flywheel effect with its law enforcement-oriented products. As more clients on one side adopt Axon’s digital evidence management software, it becomes increasingly valuable to all clients on the other side. More broadly, Axon’s innovation capabilities should continue to grow rapidly for years to come.Shares trade at 7.4 times earnings — well below their three-year average of 10.6 times earnings — and now looks like a good time to be buy this growth stock.
