Top Stock Picks for Week of November 1, 2021

Cadence Design Systems Inc. CDNS offers products and tools that help customers to design electronic products.Cadence’s Q3 performance reflected strength across segments like digital & signoff solutions and functional verification suite. Cadence posted third-quarter 2021 non-GAAP earnings which topped the Zacks Consensus Estimate. Over the last four quarters, the company has surpassed consensus EPS estimates four times. The company is also gaining from higher investments in emerging trends like Internet of Things (IoT) and autonomous vehicle sub-systems along with strength in the semiconductor end-market. We believe that increasing spending by enterprises on emerging categories like IoT and AR/VR presents significant growth opportunity for Cadence. Frequent product launches are expected to help the company sustain top-line growth. The company raised 2021 revenue guidance on strong performance in the third quarter. A strong cash balance can help the company pursue strategic acquisitions and other investments in growth initiatives. 

Salesforce.com CRM is the leading provider of on-demand Customer Relationship Management (CRM) software. Salesforce was part of the vanguard of modern business software. The company’s various subscription-based offerings are now essential to thousands of customers in the digital-driven world. Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products. Salesforce’s sustained focus on introducing more aligned products as per customer needs is driving its top-line. Investments in start-ups have always been one of the key growth strategies of Salesforce. Over the past few years, Salesforce has invested in several start-ups, be it through acquisitions or partnerships. Furthermore, the recent acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product. Salesforce is a cash rich company with a strong balance sheet.   

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.