Adyen stock (NASDAQ:ADYE) and PubMatic stock (NASDAQ:PUBM ) are two hidden jewels. Despite their scarcity, both stocks are now trading down more than 51% year to date. While some investors may be wary of stocks selling so low, others have uncovered their monstrous potential.
Let’s look at some more reasons why these are stocks to buy
Growth Stocks to Buy Right Now
1. Adyen Stock: Adyen’s Situation
Adyen is a Dutch-based developing digital payments platform that has boosted its revenue by roughly 40% yearly since 2016. Even at its slowest point in the first half of 2021, Adyen experienced a 37% revenue gain over the previous year, outpacing the industry’s expansion. The digital payments industry is expected to reach about $20 trillion by 2026, with a compound annual growth rate of 24.4% over 2018.
Notably, Adyen is not compromising profitability to achieve this faster adoption rate, demonstrating that its present surge in activity is sustainable. Adyen is a very lucrative company.
Despite these outstanding financials, Adyen stock (NASDAQ:ADYE) is down so much this year. It is mostly due to deteriorating economies in the United States and portions of Europe. A worldwide economic downturn would surely harm Adyen in the near run by slowing payment activity. Even so, Adyen may not be deterred in the long run. Even with this short-term suffering, management expects long-term revenue growth in the mid-20s to low-30s.
On an absolute basis, Adyen’s stock (NASDAQ:ADYE) isn’t the cheapest: it trades at roughly 68 times earnings compared to competitors like PayPal, which trades at 48 times earnings. However, there is a distinct difference in quality between the two firms. Adyen deserves to trade at a premium given its considerably better profitability, rapid expansion, strong balance sheet with no debt, and plenty of cash to weather this economic storm. If you want to add another company to your portfolio, Adyen should be on the top of your watchlist.
2. PubMatic Stock: The Argument for PubMatic
PubMatic stock (NASDAQ:PUBM), like Adyen, achieves an excellent mix between profitability and top-line growth. This tiny, under-$900 million advertising technology firm has been successful for 13 quarters in a row, with a 12% net income margin in Q2 2022.
How is it accomplishing this? PubMatic possesses its own technical infrastructure, enabling it to retain and analyze data to provide clients with insight into the most efficient advertising tactics. Because the corporation controls this domestically, it avoids spending money on public cloud alternatives, saving it and its customers money.
Not to mention PubMatic’s consistent revenue growth: revenue has increased by 20% yearly for eight straight quarters. This trend continued in the second quarter when the firm reported a 27% revenue growth. Given the possibilities, it’s no surprise that PubMatic stock (NASDAQ:PUBM) is gaining traction. Because PubMatic assists publishers in filling available ad inventory, the firm is projected to gain from increased digital advertising expenditure. This is predicted to rise to $627 billion by 2024, representing a 12.6% compound annual growth from 2021.
What could be better than a tech stock with expanding sales and profit margins? A low-cost technology stock with expanding sales and profitability. PubMatic is presently trading at just 18.4 times earnings, which is ridiculously low. PubMaticstock (NASDAQ:PUBM) seems to be an excellent long-term investment opportunity.
Featured Image- Unsplash @ Maxim Hopman
Author Okoro Chinedu 
