Recently, United States President Joe Biden and House Republican Speaker Kevin McCarthy have tentatively agreed to raise the federal government’s $31.4 trillion debt ceiling. However, a no-deal scenario could significantly hurt the economy if the deal is voted not to pass by Congress starting on May 31st. Economists predict higher borrowing costs, loan interest rates, and commodity prices. GDP could also drop by 4%, followed by the stock market decline by a third and higher unemployment. Despite this no-deal scenario, these three stocks stand out as strong contenders for growth. No matter the economic environment, these stocks have a sufficient margin of safety in their valuations and serve a crucial need for their customers – making them resilient in the face of any macroeconomic headwinds.

Fortinet (FTNT)

Fortinet (NYSE:FTNT) is a globally leading cybersecurity and networking solutions company. It is a leader in the security industry for developing and building custom security processing unit, or SPU, technology for consumers, allowing for a price/performance advantage over competitors focusing on CPU-driven approaches.

The cybersecurity market is forecasted to reach a valuation of $424.97 billion in 2030 from $172.32 billion in 2023, boasting a CAGR of 13.8%

In addition, Fortinet stock has grown 15.14% YoY and is up 39.67% year-to-date. Revenue beat consensus by $60 million, representing 32.0% YoY growth, while GAAP operating income has grown to $273.5 million, displaying a staggering 81% YoY growth. Q1 EPS also grew to $0.34, surpassing analyst consensus. 

Fortinet’s biggest growth catalyst is the recent unveiling of its FortiSP5, the newest SPU technology. FortiSP5 provides secure computing power to its customers to support security infrastructure alongside 88% lower power consumption compared to the leading industry-standard CPU. This innovation is a decisive competitive advantage that will boost company growth.

Yahoo Finance reports 31 analysts with a mean price target of $74.03, from $63.00 to $90.00. Many notable firms have maintained “buy” and “overweight” ratings, with no downgrades in sight for this company in the past month. Fortinet has succeeded as a leading innovator in a rapidly growing and increasingly important industry, making it an excellent technology stock choice.

The Trade Desk (TTD)

The Trade Desk Inc. (NASDAQ:TTD) is a digital marketing company providing advertisers and agencies with a platform for advertisement across all media types. It stands out with its diverse ad formats and data-driven strategies, optimizing reach for advertisers. TTD stock is up 53.67% YTD, and management has demonstrated success with a consistent 5-year-average 13.42% ROI. 21 analysts also optimistically projected price targets ranging from $77 to $90, or a minimum upside of 14.95%.

Trade Desk is in the online advertising industry, with 13.9% CAGRs to reach a $1.5 trillion valuation by 2030. In particular, consumers are increasing reliance on digital devices, e-commerce, and social media. Research conducted by the U.S. Census Bureau concluded that the retail sales ratio attributed to e-commerce doubled from 2014 to 2022, with e-commerce accounting for 15% of total retail sales. These sectors are prime for advertising, allowing innovative ad personalization and automation to instigate higher spending patterns.

Since 2015, Trade Desk has been growing its financials with an average annual revenue growth rate of 34%. In FY22, TTD reached a revenue of $1.6 billion, which is a 32% increase from FY21’s $1.2 billion. It has an FCF margin of 30.83%, beating the sector median of 7.54% and competitors.

The biggest growth tailwind for Trade Desk is its connected television (CTV) advertising, as advertisements are shown on notable sites such as YouTube and Disney. As CTV users continue to grow and linear TV declines, demand for CTV ads rises, given that CTV accounts for 80%+ of all streaming TV time. Furthermore, TTD’s ability to follow a data-driven approach to ads sold to companies will boost growth.

Investors should keep TTD on their watchlist, given its strong financial performance and growing demand for CTV advertising.

Paylocity (PCTY)

Paylocity (NYSE:PCTY) is a software-based human resource company that specializes in human capital management software and cloud-based payroll systems.

In 2022, the human resource (HR) Payroll software market was valued at $27.65 billion with a forecasted 10.60% CAGR to $61.88 billion in 2030. Paylocity additionally grew its revenue at a 25.72% CAGR over the past three years. One reason is the recent acquisition of 4 companies specializing in interactive videos, payroll management, and social media platform targeting workplace productivity. Paylocity’s CFO Ryan Glenn has an optimistic outlook for FY 2023 based on new customer service developments and annual revenue growing 36% YoY to $1.16 billion.

The Payroll software market is experiencing growth from innovation in artificial intelligence (AI), and Paylocity’s at the forefront of these advancements. Paylocity has recently developed and released AI Assist in March. AI Assist works by aiding consumers to draft and send emails by integrating OpenAI. With the increased utilization of AI in professional writing, having ChatGPT as an assistant integrated into its system helps Paylocity retain customers during this heavy inflationary time.

Though the stock is currently down 11.14% YTD, the general analyst consensus has been a “buy” rating on PCTY stock with a predicted average 48.89% upside over the next 12 months. These healthy financials provide a backbone for leadership to fulfill more acquisitions and carry through on its business model. PCTY stock is a buy, given its reasonable valuation and growth potential.

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.