Here are three stocks that are a bit expensive at the moment, but could make great investments when a correction shakes things up.
That’s extremely rare, and it’s only possible with a strong economic moat along with a commitment to entering new growth markets.
Microsoft has dominated the PC operating system market for decades, and its Office suite also holds nearly 90% market share.
Outlook is a popular email client, especially for businesses, and it’s built a number of customer relationship management tools to extend its email and productivity software.
Investors can be confident that Microsoft has incredible staying power and that it will continue to invest in new growth opportunities as they arise.
If that forward P/E ratio gets below 30 and the enterprise-value-to-EBITDA ratio gets down around 20, then Microsoft is a must-buy stock.
Veeva’s products support customers in drug development, data management, regulatory compliance, CRM, sales, and quality assurance.
By focusing on pharmaceutical and life sciences customers, Veeva is more valuable to customers than competitors whose products are designed for a broader range of industries.
Veeva’s annual sales growth rate is above 25%, but its valuation ratios are less attractive.
It’s a major player in firewall and network security, cloud-native applications, and the up-and-coming secure access service edge , which is essential for organizations that have employees accessing their corporate software remotely.
Palo Alto Networks isn’t profitable on a GAAP basis, but it produces a ton of free cash flow — equal to more than 30% of its revenue.
Those ratios aren’t crazy in today’s market, but this becomes a slam dunk if it gets just a bit cheaper.