Unlocking the secrets to identifying stocks that could pave the path to millionaire status involves two crucial factors.

Firstly, these stocks must surpass industry growth rates, setting them apart and positioning them for stock market success. Secondly, these companies must ride on the waves of secular trends that promise sustained growth over multiple years.

In today’s ever-evolving investment arena, several industries present opportunities to unearth millionaire-maker stocks. With the cybersecurity landscape altered by the surge of state-sponsored cyberattacks, security expenditure is on the rise. Chief Information Security Officers (CISOs) are increasingly investing in safeguarding their organizations to comply with regulations and withstand threats.

Aside from cybersecurity, industries such as the Internet of Things and beauty hold promise with long-term secular tailwinds. Let’s delve into two potential millionaire-maker stocks from these sectors.

Cybersecurity Leading the Way: Zscaler (ZS)

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The narrative for cybersecurity stocks like Zscaler (NASDAQ: ZS) is as compelling as ever. The year 2023 witnessed a significant spike in ransomware attacks, with criminal groups extorting a staggering $1.1 billion. Moreover, the realm of cyber warfare is becoming a prominent arena in geopolitical clashes, with nations like China and Russia leveraging cyberattacks consistently.

With ransomware threats escalating and disclosure mandates in place, CISOs are compelled to accord top priority to cybersecurity readiness. Governments are underlining the urgency for robust defenses, exemplified by President Biden’s 2021 executive order focusing on enhancing the nation’s cybersecurity protocols.

The government’s push for modernized cybersecurity, including the adoption of zero trust architectures across federal agencies, plays into Zscaler’s strengths as a premier zero trust security provider. Securing FedRAMP authorization for key products like Zscaler Internet Access and Zscaler Private Access fortifies the company’s positioning to benefit from heightened spending by federal bodies.

Zscaler is capitalizing on its robust growth trajectory in the federal sector, with a notable 31% year-over-year expansion in customers boasting annual recurring revenue exceeding $1 million witnessed in the latest quarter, Q2 of fiscal year 2024.

Despite a recent dip in its stock price from over $250 to under $200, the management remains optimistic, forecasting a 30.9% growth projection based on revenue guidance ranging from $2.118 billion to $2.122 billion for 2024.

Beauty and Conscious Consumerism: e.l.f. Beauty (ELF)

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e.l.f. Beauty (NYSE: ELF) has earned its stripes as the premier beauty and cosmetic brand among teens, and for good reason. Its competitive pricing appeals to budget-conscious consumers seeking top-notch products. Notably, the brand’s commitment to sustainability and ethical practices resonates with today’s socially-conscious consumer base.

The confluence of affordability and ethical consumerism, alongside the flourishing beauty and cosmetics market, has propelled e.l.f. Beauty’s stock to remarkable heights, boasting a YTD surge of over 38%.

The latest quarterly report released on February 6 showcased a stellar 85% year-over-year revenue surge, accompanied by a substantial 305 basis point upswing in market share. Moreover, Q3 of 2024 marked the 20th consecutive quarter of market share and revenue growth for the company.

e.l.f. Beauty’s growth prospects remain robust in the domains of color cosmetics and skincare, with the brand holding a prominent position at retail giants such as Target, Ulta Beauty, and Walmart. The company’s products are in-demand among retailers, leading to expanded shelf space in other chains like CVS Health. The international landscape presents a burgeoning opportunity for e.l.f., with forays into markets like Canada and the U.K., broadening its presence in stores including Superdrug and Boots.