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Summary
Following my coverage of Zuora (ZUO), which I recommended a buy rating due to my belief that ZUO can accelerate its growth as it finds success in pivoting its sales strategy, my expectation
Zuora: Expect Growth With Expanding Margins Ahead
Summary
- Zuora's growth remains positive despite the macro condition, and its profit margin is expanding, indicating positive future earnings growth.
- The company has a strong pipeline of future revenue from contractual relationships, indicating potential for continued growth.
- Despite the current macroeconomic conditions, ZUO's performance and improving metrics suggest that the situation can only improve in the future.
I take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with steady long-term growth, no cyclicality, and a robust balance sheet.Nevertheless, investing in successful company is risky because one may end up paying too much (this is where valuation matters). I firmly believe this, yet there are situations where the development runway is so vast that price matters much less in the immediate future.
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