1 SaaS Stock That's Still Worth Buying in 2023

NYSE: NEWR | New Relic, Inc.  News, Ratings, and Charts

NEWR – SaaS stock New Relic (NEWR) beat revenue and EPS estimates in the last reported quarter. Moreover, Wall Street analysts are bullish on the stock. So, NEWR might be worth buying this year. Keep reading…

Software-as-a-Service (SaaS) stock New Relic, Inc. (NEWR) recently launched the industry’s only change tracking solution. Moreover, NEWR’s CEO Bill Staples said, “We are attracting new customers at a rapid pace and growing with our existing customer base as they expand their observability practices and continue with their digital transformation and cloud adoption.”

NEWR surpassed consensus revenue estimates by $6.82 million for the quarter that ended in December 2022. Also, it beat EPS estimates by 111.5%.

Furthermore, demand for the SaaS industry remains robust. According to Technavio, the global SaaS market is expected to grow at a CAGR of 11.4% until 2026.

NEWR has gained 33.4% over the past month to close the last trading session at $77.12. Moreover, it has gained 11.1% over the past six months and 6.5% over the past year.

Here is what could shape NEWR’s performance in the near term:

Solid Financials

NEWR’s revenue came in at $239.76 million for the fiscal 2023 third quarter that ended December 31, 2022, up 17.8% year-over-year. Its gross profit increased 32.4% year-over-year to $178.45 million.

Moreover, its non-GAAP net income came in at $21.81 million compared to a loss of $11.69 million in the year-ago period, while its non-GAAP EPS came in at $0.32 compared to a loss per share of $0.18.

Favorable Growth Estimates

NEWR’s revenue is expected to increase 17.6% year-over-year to $924.13 million in 2023 and 15.6% year-over-year to $1.07 billion in 2024. Its EPS is expected to increase 153.2% year-over-year to $0.41 in 2023 and 231.7% year-over-year to $1.36 in 2024.

Moreover, its EPS is expected to rise 15% per annum for the next five years. Also, it surpassed EPS estimates in three of four trailing quarters.

POWR Ratings Reflect Promising Outlook

NEWR’s overall rating of B equates to a Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories.

NEWR has a B grade for Growth, consistent with its solid financials in the latest reported quarter. It has a B grade for Sentiment in sync with favorable analysts’ estimates.

In the 25-stock Software – SAAS industry, NEWR is ranked #3.

Click here for the additional POWR Ratings for NEWR (Value, Momentum, Stability, and Quality).

View all the top stocks in the Software – SAAS industry here.

Bottom Line

NEWR reported solid financials in the most recent quarter. Moreover, Wall Street analysts expect the stock to hit $79.75 in the near term, indicating a potential upside of 3.4%. Also, given its favorable growth estimates, I think NEWR might be worth buying in 2023.

How Does New Relic, Inc. (NEWR) Stack up Against Its Peers?  

While NEWR has an overall POWR Rating of B, one might consider looking at its industry peers, Park City Group, Inc. (PCYG), Informatica Inc. (INFA), and The Descartes Systems Group Inc. (DSGX), which also have an overall B (Buy) rating.

What To Do Next?

Get your hands on this special report:

3 Stocks To DOUBLE This Year

What gives these stocks the right stuff to become big winners, even in this brutal stock market?

First, because they are all low-priced companies with the most upside potential in today’s volatile markets.

But even more important is that they are all top Buy rated stocks according to our coveted POWR Ratings system, and they excel in key areas of growth, sentiment and momentum.

Click below now to see these 3 exciting stocks that could double or more in the year ahead.

3 Stocks To DOUBLE This Year


NEWR shares were trading at $76.98 per share on Tuesday morning, down $0.14 (-0.18%). Year-to-date, NEWR has gained 36.37%, versus a 7.47% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NEWRGet RatingGet RatingGet Rating
PCYGGet RatingGet RatingGet Rating
INFAGet RatingGet RatingGet Rating
DSGXGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

What Data Should Investors Focus on Now?

The S&P 500 (SPY) is up nearly 50% from the bear market lows. That is a sign the easy money has been made. The next likely catalyst for stocks will probably be the first Fed rate cut...but maybe that is really the final push before a long overdue sell off? Tune in to discover what investment veteran Steve Reitmeister has to say about the market outlook along with his trading plan and top picks to stay ahead of the pack. Read on below for more...

Read More Stories

More New Relic, Inc. (NEWR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NEWR News