In the current dynamic economic environment, investors are looking for opportunities that will not only stick but also have the potential to make great leaps and bounds. Only with an understanding of the financial health, strategic resource management, and innovative position created in the marketplace can careful identification of such opportunities be made.
We spotlight seven stocks to buy that have epitomized such traits over the years. These firms must have good financials, use capital efficiently, and strategically move ahead with technology. They reflect how calculated moves, effective resource management, and innovative solutions spur business success.
All these stocks became unique market leaders, with record-breaking net income growth and strategic investments in technology and innovation. This shows what can be done by balancing profitability with sales growth and the power of entering new markets with groundbreaking solutions.
These successes are a story of adaptability and resilience, making these seven stocks the perfect choice for investors to make money with future market leaders. That’s why there are seven stealthy stocks to buy and set up to take over the market.
BTCS (BTCS)
An image of the blockchain, distributing digital crypto from a phone through the web to another tablet
Source: elenabsl/Shutterstock
BTCS (NASDAQ:BTCS) is a blockchain tech company focusing on cryptocurrency and blockchain ecosystems. In the first quarter of 2024, the company delivered a record net income, exhibiting remarkable profitability and financial success. There was a massive 148% year-over-year (YOY) growth and a 13% quarterly gain, demonstrating the company’s fundamental capacity to improve its bottom line continuously.
Moreover, this substantial increase in net income results from BTCS’s effective capital allocation, revenue optimization tactics, and generally favorable market circumstances. Thus, with such remarkable profit growth, BTCS attracts potential partners and investors as a profitable investment option.
Further, the solid rise in BTCS’s cash and cryptocurrency worth indicates the company’s sound financial standing and liquidity. The 91% YOY increase shows significant asset accumulation that may be used for research projects, strategic investments, and possible acquisitions.
Overall, BTCS’s strong cash and cryptocurrency reserves allow it to adapt to market swings, take advantage of expansion possibilities, and weather unanticipated difficulties. Hence, these fundamentals make the company an ideal addition to the stocks to buy list.
Celestica (CLS)
Source: sdecoret / Shutterstock.com
Celestica (NYSE:CLS) provides design, manufacturing, hardware platform, and supply chain solutions. In Q1 2024, it was $0.86, a solid boost from $0.47 in Q1 2023. Compared to 17.9% in Q1 2023, the adjusted ROIC for Q1 2024 was 24.8%, a significant improvement. Celestica can produce increased profits per share and efficiently use its capital to create returns, reflected in the solid growth in adjusted EPS and ROIC. Indeed, this financial stability supports the company’s growth trajectory.
Additionally, adjusted free cash flow for Celestica increased significantly from $9.2 million in Q1 2023 to $65.2 million in Q1 2024. With $900 million in cash and borrowing capacity, the company was able to retain a solid lead (in terms of liquidity). Celestica can make strategic investments, initiate acquisitions, and operational expansions. Indeed, this is because of its strong cash flow generation and liquidity position.
Overall, generating substantial free cash flow indicates efficient operations and skillful working capital management, cementing its place on the stocks to buy list.
Beamr (BMR)
an image of a cloud imprinted on a circuit board lit up by blue circuit lights. AVCT stock. cloud computing stocks
Source: Blackboard / Shutterstock
Beamr (NASDAQ:BMR) is competitive in the video optimization business because of its sharp focus on technological innovation and distinction. In February 2024, the debut of the Beamr Cloud SaaS service marked an important turning point. This service will make large-scale, high-quality video processing affordable.
Additionally, the system provides advanced features, including faster adoption of new standards and upgrading video standards (from AVC to HEVC). The firm may have an edge after it includes visual AI processes into Beamr Cloud in Q2 2024. This indicates that it is adaptable to market demands and can use cutting-edge technology to improve its products.
Moreover, Beamr’s 2023 performance marks enhanced financial stability and liquidity. Even though the company lost$0.7 million on the net, this was still a major improvement over its $1.2 million loss in 2022. Overall, Beamr’s efforts to improve cost efficiency and streamline operations have decreased net loss, making it a compelling addition to the stocks to buy list.
Zenvia (ZENV)
A man examines a digital screen with different icons for software.
Source: Shutterstock
The success that Zenvia (NASDAQ:ZENV) has had in its software-as-a-service (SaaS) and communications platform-as-a-service (CPaaS) divisions marks the increasing acceptance of the company’s product and market penetration. Strong recovery and growth were seen in the CPaaS market, fueled by increased SMS volumes among major organizations. SaaS and CPaaS’s many income sources offer a balanced growth engine that lessens reliance on a particular market niche and demonstrates resilience and adaptability to changing market needs.
Further, SaaS Active users climbed from 6,231 to 7,127, a 14.4% increase. CPaaS active clients dropped from 7,505 to 6,263 (16.5%). The increase in annual recurring revenue (ARR) and SaaS active customers suggests this market is expanding strongly, especially among small and medium businesses. A strategy change towards higher-value interactions with larger organizations is reflected in the drop in CPaaS active clients. This might lead to fewer but more substantial customer partnerships.
Overall, expansion in ARR, market penetration, and customer base more than offsets any potential churn or downselling in bigger customers, as indicated by the decline in the Net Revenue Expansion rate. Therefore, these fundamental developments place the company under stocks to buy class.
RingCentral (RNG)
The RingCentral (RNG) mobile app is displayed on a smartphone screen.
Source: OpturaDesign/Shutterstock.com
RingCentral (NYSE:RNG) provides businesses with cloud-based communications and collaboration solutions. In Q1 the company’s stock-based compensation fell 15.6% of total sales, a 340 basis point YOY decline.
Additionally, RingCentral maintained its strict policy on stock issues, anticipating that fresh grants in 2024 would be around half of those in 2023. The reduction in share-based compensation (SBC) exemplifies RingCentral’s attempts to match executive remuneration with business success and shareholder interests. Further, the firm hopes to increase profitability and support expansion efforts more effectively by reducing SBC expenditures.
Moreover, RingCentral maintained its alliances with over 15,000 channel partners, important original equipment manufacturer partners like Amazon (NASDAQ:AMZN) AWS, and international service providers. The firm announced a new agreement with Optus, the second-largest telecommunications operator in Australia, expanding its partnership network.
Hence, by leveraging partnerships, the business can expand its audience, increase brand awareness, and capitalize on synergies to drive sales growth, securing its place on the stocks to buy list.
Jamf (JAMF)
An Apple MacBook Air laptop sitting under bright purple lights.
Source: WeDesing / Shutterstock.com
Jamf (NASDAQ:JAMF) specializes in device management of Apple (NASDAQ:AAPL) devices. It provides device deployment, security, and management solutions for enterprises, schools, and other organizations.
Security is a priority for the company, as seen by the 31% YOY rise in security ARR to $138 million, or 23% of total ARR. This expansion highlights the rising need for reliable security solutions. Jamf focuses on meeting changing client demands and regulatory standards, which is reflected in the launch of new compliance-focused capabilities, such as tools for compliance editors and configurable compliance dashboards.
Furthermore, Jamf’s sharp focus on creativity and flexibility reflects its support for cutting-edge technologies like watchOS management and Apple’s (NASDAQ:AAPL) Vision Pro. Expanding its product offerings beyond standard device management to include identity management, security, and compliance solutions increases Jamf’s competitiveness and market relevance. Thus, gaining contracts with Middle Eastern and Indian government organizations demonstrates Jamf’s success in expanding internationally and its capacity to meet various customer demands.
Lightspeed (LSPD)
The Lightspeed Commerce logo on a smartphone representing LSPD stock.
Source: Piotr Swat / Shutterstock.com
Lightspeed (NYSE:LSPD)offers cloud-based point of sale (POS) and e-commerce software solutions for retail, restaurant, and hospitality businesses. Examples of the company’s focus on enabling current clients to expand include Tribal Sportswear, Analogue October Records, and Mildreds. The net retention rate shows strong client retention and growth within the current customer base, around 110%. Lightspeed is still investing in new product development, using AI to automate processes and give merchants useful information.
Additionally, subscription revenue gross margins increased to 77% due to initiatives to streamline cloud suppliers and boost general productivity. The business undertook cost-cutting measures. These include a 10% decrease in personnel and carefully examining vendor contracts and worldwide facilities. Analysts predict adjusted operating expenses will increase in the low-to-mid single-digit range in fiscal 2025. With that, there is a focus on cost containment and investments in research, product innovation, and sales.
Overall, adjusted EBITDA margins are anticipated to increase significantly in fiscal 2025 and 2026, demonstrating a sharp focus on profitability and solidifying its position on the stocks to buy list.
On the date of publication, Yiannis Zourmpanos did not hold (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.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
