On Monday, DA Davidson expanded its prestigious Best-of-Breed Bison (BBB) list with the addition of seven new companies. The BBB list is known for featuring companies that meet specific criteria, including simplicity of business model, strong economic characteristics, robust competitive advantages, management that prioritizes shareholders, and outstanding financial performance.
The firms newly included in the BBB list are Snowflake (NYSE: SNOW) (NYSE:SNOW), JFrog Ltd. (NASDAQ: FROG), Datadog, Inc. (NASDAQ: NASDAQ:DDOG), SPS Commerce (NASDAQ: NASDAQ:SPSC), Manhattan Associates, Inc. (NASDAQ: NASDAQ:MANH), NICE (NASDAQ: NICE), and Salesforce (NYSE: NYSE:CRM). These companies join the ranks of other notable tech giants such as Microsoft (NASDAQ:MSFT), Adobe (NASDAQ:ADBE), Workday (NASDAQ:WDAY), and Dynatrace (NYSE:DT), which were previously recognized on the list.
Snowflake, a cloud-based data platform, JFrog, a provider of software release automation, and Datadog, a monitoring and analytics platform for developers, are among the tech stocks that have been highlighted for their strong market positions and innovative solutions in the technology sector.
Also making the cut are SPS Commerce, which offers cloud-based supply chain management software, Manhattan Associates, specializing in supply chain and omnichannel commerce, NICE, known for its software solutions that help organizations improve customer experience, and Salesforce, a global leader in customer relationship management (CRM) software.
The inclusion of these seven companies on the Best-of-Breed Bison list by DA Davidson underscores their perceived potential to continue delivering exceptional financial results and maintaining competitive advantages in their respective industries. The list serves as a guide for investors looking for businesses with strong fundamentals and leadership.
InvestingPro Insights
Following DA Davidson's inclusion of Snowflake (NYSE: SNOW) in its Best-of-Breed Bison list, a closer look at the company's financials through InvestingPro's lens offers a mixed picture. Snowflake holds a strong liquidity position, as indicated by two key InvestingPro Tips: the company holds more cash than debt on its balance sheet, and its liquid assets exceed its short-term obligations. This suggests that Snowflake is well-prepared to manage its short-term financial commitments and invest in growth opportunities.
However, it's important to note that Snowflake is not profitable over the last twelve months, and analysts have revised their earnings downwards for the upcoming period. Despite these concerns, analysts predict the company will be profitable this year. The market seems to have reacted to these factors, with the share price experiencing a significant drop of approximately 27% over the last three months. In terms of valuation, Snowflake is currently trading at high revenue and Price / Book multiples, which may raise questions about its current pricing relative to its book value and revenue generation capabilities.
From a data perspective, Snowflake's market cap stands at $49.4 billion, with a high P/E ratio of -58.03, reflecting investor expectations of future growth rather than current profitability. The company's revenue growth remains strong, with a 35.86% increase over the last twelve months as of Q4 2024. For investors seeking more detailed analysis and additional InvestingPro Tips, there are 5 more tips available which can be accessed with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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