Tech Stock Analysis: Zscaler, Innodata, and SoFi Insights

Tech stocks offer growth opportunities, but caution is advised. Zscaler, Innodata, and SoFi are highlighted as potential long-term investments due to their unique business models and growth metrics.

Date: 15-02-2025

AI Rating: 7

Growth Opportunities in Tech Stocks

The report provides insight into three tech growth stocks: Zscaler, Innodata, and SoFi Technologies, each exhibiting promising growth metrics. These stocks might be appealing to investors seeking long-term growth.

Zscaler

Zscaler has demonstrated a compound annual growth rate (CAGR) of 48% from fiscal 2019 to 2024. Meanwhile, its adjusted net income increased at a CAGR of 76%. Analysts project a revenue growth rate of 21% CAGR from fiscal 2024 to 2027. However, the slowing growth indicates a maturing business, yet cybersecurity threats continue to rise, suggesting resilience in growth. Zscaler's valuation at 12 times this year's sales hints at a premium price, compensating for its potential to expand further as demand for cybersecurity solutions increases.

Innodata

Innodata has undergone significant transformation with its foray into AI analytics, showcasing a revenue CAGR of 12% from 2019 to 2023, while an anticipated CAGR of 42% from 2023 to 2026 reveals robust growth prospects in the AI segment. The expectation of becoming profitable indicates positive future earnings potential. Analysts expect net income growth at a CAGR of 23%, reinforcing investor interest based on its low valuation at 6 times next year's sales.

SoFi Technologies

SoFi has experienced remarkable growth in its membership base, quadrupling from 2.52 million in 2020 to over 10 million in 2024. Its adjusted revenue grew at a CAGR of 43% during this period. Analysts predict revenue growth at a CAGR of 20% and net income growth at 9% from 2024 to 2026. The digital bank's emergence and strong revenue metrics bolster confidence despite economic headwinds like rising interest rates and loan repayments. SoFi's valuation at 5 times this year's sales positions it as an attractive investment in the fintech market.

Stocks: ZS INOD SOFI