Nvidia (NASDAQ:NVDA) has produced generational returns in a short amount of time. The stock has soared by more than 3,000% over the past five years and continues to be a winner on Wall Street.
Analysts continue to raise their price targets for the AI leader. It’s rated as a strong buy with a projected 10% upside from current levels. A stock split has renewed excitement for the stock, but it’s not the only leader available.
Some investors want to emulate Nvidia’s gains and load up on companies with promising prospects. These are some of the top rising stocks to monitor.
HubSpot (HUBS)
HubSpot (NYSE:HUBS) has always generated high revenue growth. The company held true to that trend with 23% year-over-year (YOY) revenue growth in Q1 of 2024. However, the company has also been delivering profitable quarters which is a pleasant surprise for long-term investors. GAAP net income came to $5.9 million compared to a net loss of $36.6 million in the same period last year.
HubSpot offers customer relationship management tools that help companies communicate with their audiences. The tech firm has several subscription plans available for potential customers. Subscription models allow companies like HubSpot to generate steady revenue from current customers and attract new businesses simultaneously. More than $600 million of the company’s $617.4 million in total revenue came from subscriptions.
While HubSpot has been on investors’ radars for several years, it’s gained renewed attention thanks to a potential acquisition. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is in talks to buy HubSpot. An acquisition should result in a big payday for investors.
Duolingo (DUOL)
Duolingo (NASDAQ:DUOL) is an educational tech company that helps people learn new languages. The company has also expanded to offer subjects like math and science. It doesn’t have the same returns as Nvidia. Shares are down by 11% year-to-date (YTD) and have gained 36% since its IPO in 2021.
Despite the stock’s performance, Duolingo has several elements of a compelling long-term pick. Revenue increased by 45% YOY in Q1 of 2024 as the company reached 97.6 million monthly active users. MAUs increased by 35% YOY while daily active users jumped by 54% YOY to reach 31.4 million.
Profit margins continue to surge amid breakout revenue performance. Net income came to $27.0 million in the quarter compared to a net loss of $2.6 million in the same period last year. As people continue to learn new languages, more of them will turn to Duolingo. It’s a top choice that is expanding into additional subjects. Duolingo is building up to a broader appeal instead of only being suitable for people who want to speak multiple languages.
Crowdstrike (CRWD)
Crowdstrike (NASDAQ:CRWD) is a cybersecurity leader that continues to grow despite challenges in the industry. Revenue increased by 33% YOY to reach $637.4 million in Q4 of 2024. The company’s annual recurring revenue is a solid $3.44 billion which is 34% higher compared to the same period last year.
Revenue isn’t the only thing going well for the firm. Net income came to $53.7 million in the quarter compared to a $47.5 million net loss in the same period last year. Rising profits will make the valuation look more promising for long-term investors, but the forward P/E ratio currently stands at 81.
Also, Nvidia had a high valuation for much of its time on the stock market. Some investors believe Nvidia still has an excessive valuation, but it’s harder to make that case due to incredible revenue and earnings growth. Crowdstrike’s valuation will spook some investors. But people who can hold onto the stock for more than a decade may end up with respectable gains.
On this date of publication, Marc Guberti held a long position in CRWD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.