The stock market has been unusually volatile of late, with some firms seeing their share prices drop by 80% or more from previous highs. Some of the best-performing equities are attractively priced by the market and may rise significantly over the next several years.
Both Roku (ROKU) and Corsair Gaming (CRSR) are two stocks that appear to be ready to break out. Both businesses serve fast-growing sectors and provide long-term investors with a fantastic buying opportunity.
Despite a decade of expansion, the streaming industry continues to offer prospective stocks for long-term gain. According to data from Nielsen Holdings, streaming usage grew 21% year over year through May, yet it accounted for just one third of TV viewing time. That leaves a lot of potential for the market’s major companies.
Roku will benefit as more advertisers start to shift their expenditures from traditional TV to digital platforms. With about 61 million active accounts, Roku is the one of the most popular operating systems for smart TVs. Each individual user on Roku’s platform is able to be monetized in a variety of ways, including ad-supported content or through a subscription to a streaming service.
Roku’s revenue, which is primarily generated by advertising, has risen sixfold to $2.9 billion in the last five years. That is a tiny piece of the fast-growing $50 billion digital video advertising industry.
The stock is now down 81% from the highs reached last year. With active accounts and platform revenue continuing to rise year over year, it’s only a matter of time until the price soars.
2. Corsair Gaming
The worldwide number of individuals who play games on a computer is estimated at 1.7 billion people. That is up from 1.5 billion before the epidemic began. The number of gamers is also increasing the market potential for gaming peripherals like keyboards, where Corsair Gaming is one of the best brands. Last year, gaming peripherals accounted for a third of Corsair’s overall income.
Corsair’s PC hardware, which accounts for two-thirds of its income, is served by the same manufacturer as high-end components. Gamers regularly replace their computer components, such as new memory modules, to help keep them running smoothly. Some sources of computer parts and processors were disrupted last year due to shortages. Because of increasing GPU prices, many consumers were unable to purchase new PCs.
GPU prices, on the other hand, have already begun to drop. This should result in higher demand for Corsair products, which include power supplies and computer cases, which gamers purchase when building a new gaming PC.
Based on this year’s consensus analyst forecast, the stock has a market-average price to earnings ratio of 17. This value does not take into account Corsair’s projected higher growth rate over the next several years.