Often, when looking for potential big winners in the stock market, investors focus on consumer-facing products. This wouldn’t be a bad way to go about things as many consumer-facing products have found success including Apple, Tesla, and Teladoc among many others. However, there are also monster growth stocks within the enterprise space. Investors in Microsoft and Salesforce will be able to attest to that.
With that said, these two stocks I’ll be discussing are firmly placed within the enterprise space. Both companies have excellent potential to be market beaters for the next few years.
This is one tech company you may not know
The first enterprise stock investors should take note of is Ceridian (TSX:CDAY)(NYSE:CDAY). This company is a human capital management company. It became widely popular due to its flagship offering, Dayforce. Using this platform, Ceridian customers are able to provide human resources, payroll, benefits, and workforce management in a single solution. Through the employee’s entire lifetime, companies will be able to ensure a smooth experience.
Ceridian offers solutions to a wide range of industries including retail and hospitality, manufacturing, healthcare, and financial services. This wide reach allows the company to grow its addressable market, which is a very attractive point for investors to consider. Since its Initial Public Offering (IPO) Ceridian stock has gained about 200%. One of the lesser gainers through 2020 (the company has only gained about 30% over the past year), Ceridian may be one of the few stocks trading at a reasonable valuation.
If you are interested in an exciting new stock with excellent growth potential, take a look at this company today.
The eLearning company investors have forgotten about
From March till June 2020, Docebo (TSX:DCBO)(NASDAQ:DCBO) was one of the most talked-about stocks on the TSX. Investors saw the company gain about 650% in value since hitting its March lows. Now, with the stock on a 17% downtrend since December, it seems like many investors have left the stock behind. Docebo is still a rather small company, coming in at a $2.24 billion market cap. If it manages to become the beast many believe it can be, investors could be looking at monstrous gains.
Docebo is an eLearning platform for enterprises. Using this cloud-based, AI-powered software, training managers are able to assign, monitor, and modify training exercises with ease. As the world becomes more digital, Docebo’s platform will continue to be relied upon. The adoption of eLearning and better Learning Management Systems has been accelerated by the COVID-19 pandemic.
One of Docebo’s biggest moves in 2020 was the announcement of a multi-year partnership with Amazon, that will allow Docebo to power its AWS Training and Certification offerings. Docebo also held its American IPO to close out the year, which allows the company to access a larger amount of capital.
Although consumer-facing products are often the big stock market winners, investors should not neglect enterprise companies. Many of these companies end up being very successful and in the case of a Salesforce and Microsoft, even a household name. Ceridian and Docebo are two enterprise stocks that are poised to grow. Investors should consider tagging along for the ride.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Apple, Docebo Inc., Microsoft, Teladoc Health, and Tesla. David Gardner owns shares of Amazon, Apple, and Tesla. Tom Gardner owns shares of Salesforce.com and Tesla. The Motley Fool owns shares of and recommends Amazon, Apple, Microsoft, Salesforce.com, Teladoc Health, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.