Insider Monkey
16 Most Profitable New Stocks Today
Fahad Saleem
9 min read

In This Article:

In this article, we will take a detailed look at the 16 Most Profitable New Stocks Today. For a quick overview of such stocks, read our article 5 Most Profitable New Stocks Today.

IPO activity showed some signs of a rebound in 2023 but public markets are far from the enthusiasm witnessed in 2021. Some notable IPOs in 2023 included those of ARM, Instacart, Klaviyo, among others. A detailed report by Renaissance Capital said that there are about 160 companies waiting to go public soon, looking to raise over $8 billion in total. The report said there are about 15 IPOs planning to raise at least $100 million in 2024, with most of the notable IPOs expected to take place in the second and third quarter of 2024.

"Our Private Company Watchlist (PCW) contains more than 200 IPO candidates that we believe are poised to list within the next two years. In 2023, 17 of the year’s largest IPOs came from our PCW, led by chip giant Arm. Large VC-backed startups are staying private longer than ever before, but improved market conditions in 2024 should open the door for companies that have made strides towards profitability," the report said.

The report listed some of the most-anticipated IPOs of 2024. Some top names in the list include Reddit, Rubrik, Panera, Kim Kardashian’s shapewear brand Skims, Chinese fashion retailer SHEIN, Stripe, canned water company Liquid Death, General Atlantic, among many others.

Ernst & Young said in its market outlook report that easing inflation and possible rate cuts could cause a rebound in the IPO markets but companies are expected to remain in the wait and see mode as they await more favorable market conditions. EY's report said despite a strong rally in the stock market, IPO activity was muted in 2023. This is because most of the market gains were concentrated in the mega-cap technology space and the broader market did not see widespread gains as inflation and recession-related worries continue to haunt investors. Companies are also fearful of post-IPO losses as 2022 and 2023 has shown that most of the IPOs failed to sustain the optimism of their first few days. On the other hand, high-growth developing markets saw a stronger IPO activity in 2023, with  Indonesia, Malaysia and Turkey showing a rise in deal volume and proceeds by benchmarking against 5-year average IPO activity.

"The tumbling share prices of September listings have prompted some IPO candidates to consider delaying their plans. Companies are further discouraged by uncertainty over interest rate patterns and geopolitical events. Even those choosing to go public are proceeding with care, scrutinizing market signals and potentially postponing their offering. Large-cap IPOs consistently trailed smaller deals across post-IPO windows from one day to one month as well as trailing current returns. In a bid to bolster confidence, some large-caps are opting for 'cornerstone strategies' — having anchor investors buy big blocks of shares — although this approach can also reduce liquidity. Still, some 2022 large-cap IPOs dropped on their debut while small and micro listings enjoyed notable day-one IPO pops. As smaller businesses stay open to IPO plans, a few big-ticket success examples need to surface, to restore investor confidence before large volume of IPOs return. Compared with the Americas and Asia-Pacific regions, EMEIA saw the highest IPO returns with its 2023 IPO cohort: about 70% of EMEIA IPOs exceeded their offer prices. 100% of newly public companies in Turkey enjoyed positive returns, with UAE and India not far behind at 80% and 75%, respectively. These results have made them some of EMEIA’s best performing IPO markets," EY added.

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