Are These High-Growth Stocks the Next Palantir?
This chart highlights the financial performance of global enterprise software companies with TTM (trailing twelve months) revenue over $1 billion.
It’s based on two key financial metrics:
Y-Axis: Year-over-Year Revenue Growth (Growth)
X-Axis: Adjusted Operating Margin (Profitability)
There are two important benchmark lines:
Rule of 40 Frontier: Growth + Profitability ≥ 40% — indicates a financially healthy business
Rule of 80 Frontier: Growth + Profitability ≥ 80% — represents an elite-level company
The takeaway? The farther to the upper-right, the stronger the company. These are the rare names that are both growing fast and generating significant profits.
What Does $Palantir Technologies Inc.(PLTR)$ Position Tell Us?
Palantir stands out clearly—well above both the Rule of 40 and Rule of 80 lines.
~59% revenue growth
~35% operating margin
Combined score: 94%
This makes Palantir one of the very few companies in enterprise software that are delivering both high growth and high profitability—a rare combination in this space.
Who Else Stands Out Near the Rule of 80 or Above the Rule of 40?
Here are some high-quality names that either approach Rule of 80 or sit comfortably above Rule of 40:
✅ $Fair Isaac Corp(FICO)$ – 77%
Quiet giant behind your credit score
Strong pricing power & sticky customers
High-margin, low-drama operator
✅ $财捷(INTU)$ – 69%
Owns QuickBooks & TurboTax
Huge moat in SMB + personal finance
Consistent profitability, now layering in AI
✅ $PTC Inc.(PTC)$ – 65%
Industrial software, under the radar
High profitability, steady growth
Benefiting from long-term digital transformation in manufacturing
✅ $Adobe(ADBE)$ – 59%
Dominates the creative and marketing software landscape
Exceptional margins, now expanding into AI and cloud-based solutions
✅ $Synopsys(SNPS)$ – 46%
Critical to semiconductor design (EDA tools)
Strong margins, solid growth, and an essential role in chip innovation
High-Growth, Higher-Risk Names
These companies have strong revenue growth, but are still working toward higher profitability:
⚡ $Zeta Global Holdings Corp.(ZETA)$: 47% growth, but lower margins
⚡ $ACI Worldwide Inc(ACIW)$, $Newmont Mining(NEM)$, $Dynatrace Holdings LLC(DT)$: Strong growth with improving profitability
⚡ $Snowflake(SNOW)$ (not shown): Very high growth, but still burning cash
🤔 What Kind of Software Stocks Do You Look For?
Are you on Team “Growth at All Costs”?
Or do you prefer “Profitable Compounders” that steadily deliver?
Are any of these names in your portfolio? Which ones are you watching?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
I’m also watching names like $Fair Isaac(FICO)$ , $Intuit(INTU)$ , and $Adobe(ADBE)$ . These companies have strong moats, high margins & consistent performance. Their ability to steadily compound value with less volatility makes them attractive long-term holds in my view.
While I do track high-growth names like $Zeta Global Holdings Corp.(ZETA)$ and Snowflake, I’m cautious unless there's a clear path to profitability. I prefer businesses already generating healthy profits, as they tend to be more resilient & better positioned to scale sustainably.
@MillionaireTiger @Tiger_comments @TigerStars
40邊界規則：增長+盈利能力≥40%-表明企業財務狀況良好
80邊界規則：成長+盈利能力≥80%——代表精英級公司
它基於兩個關鍵財務指標：
Y軸：收入同比增長（增長）
X軸：調整後營業利潤率（盈利能力）
2024 至 2025 TTM（过去 12 个月）收入增长 ~40%
• 毛利率维持在 ~60%，可自由现金流表现健康 ；
• 现金远超负债，财务结构稳健 。
• 公司业务与 AI 主线契合，市场普遍看好其中长期发展 。