In the dynamic stock market, the most lucrative opportunities often arise from the unexpected. This article delves into the strategies of three under the radar stocks to watch quietly making waves in their respective industries, poised to unleash substantial growth.
The first one emerges as a standout on Deloitte’s Fast 500 list. It projects a doubling of revenues for 2023, fueled by groundbreaking technologies like GaNSafe and Gen-3 Fast Silicon Carbide.
Meanwhile, the second one strategically dominates the cinematic landscape. It is adept at real-time content management and global resonance, showcasing why it is hailed as “The Future of Cinema” by industry leaders.
Finally, the third navigates the solar industry’s surge, capitalizing on utility-scale solar and strategic diversification, affirming its positive outlook despite challenges.
The article explores the uncharted territories of these market movers. Here, innovation meets adaptability and resilience, unlocking the potential for unprecedented profits. Read on to learn more about under the radar stocks to watch.
Under the Radar Stocks to Watch: Navitas (NVTS)
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Navitas (NASDAQ:NVTS) was acknowledged on Deloitte’s Fast 500 list for the second consecutive year. It underscores its rapid growth, with annual revenue surging more than 2,000% in three years. Navitas is confident in doubling its revenues in 2023 compared to 2022, indicating a strong growth trajectory.
The company’s new technology platforms, including GaNSafe, Generation 4 Ganfen tapered ICs, Gen-3 Fast silicon carbide, and bidirectional GaN, position it for further expansion into diverse markets. In detail, the introduction of GaNSafe technology sets a new industry benchmark. It provides the world’s most protected, reliable, high-performance GaN power semiconductors. This breakthrough allows applications from AI data centers to EV powertrains to benefit from higher power density, efficiency, and reliability.
Specifically, Generation 4 Ganfen Tapered ICs are highly integrated GaN ICs that simplify design, reduce footprint, and enable higher switching frequencies, addressing mobile fast chargers and consumer adapters. Its Gen-3 Fast Silicon Carbide offers superior switching performance. It is outperforming competitors by up to 50%, catering to electric vehicles, solar inverters, energy storage, data centers, and industrial applications in the one to 30-kilowatt range.
Similarly, Bidirectional GaN is a breakthrough innovation, allowing GaN ICs to conduct and block currents in both directions efficiently. It is potentially revolutionizing energy storage grid infrastructure, motor drives, and other emerging technologies.
Finally, Navitas is experiencing strength and upside in the mobile market. It anticipates that about 30% of its total mobile charger shipments in 2024 will utilize GaN, particularly with major OEMs like Xiaomi (OTCMKTS:XIACY) and OPPO. The company’s technologies are penetrating various markets, including solar and energy storage, electric vehicles, data centers, and appliances. It showcases diversification and resilience against market fluctuations.
Imax (IMAX)
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Imax’s (NYSE:IMAX) success is intricately tied to its diverse and compelling content portfolio. The company’s strategic approach to content curation, spanning Hollywood blockbusters, local language films, concert films, documentaries, and live events, has been a key driver of its success.
A key highlight is the performance of local-language films. These films represent 22% of the global box office in 2023, compared to only 12% in 2019. This strategic shift emphasizes Imax’s adaptability and responsiveness to diverse market preferences. The success of films like “Oppenheimer” and local releases from China, Japan, and India underscores Imax’s ability to cater to a wide range of audiences globally.
Imax’s agility in real-time programming management is evident in its ability to adjust to market dynamics. Also, it capitalizes on unexpected content opportunities. The company’s performance with films not initially on the slate for the year, including Taylor Swift’s “The Eras Tour” and Apple Films’ “Killers of the Flower Moon,” speaks to its strategic content management, highlighting the increasing diversity of its portfolio.
Furthermore, Imax’s brand has become synonymous with premium cinematic experiences, contributing to its market leadership and global recognition. Filmmakers and industry leaders, such as Denis Villeneuve, who declared Imax “The Future of Cinema,” reinforce the company’s position as a pioneer. Geographic success is another dimension of Imax’s market leadership. The company’s record-breaking summer of 2023 spanned 54 countries, from Argentina to Vietnam, highlighting its ability to resonate with diverse audiences worldwide.
Overall, Imax’s consistently high market share and results in different regions, including the United States, China and Malaysia, underscore the universal appeal of the Imax brand.
Array (ARRY)
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Array’s (NASDAQ:ARRY) optimism about the solar industry is reflected in compelling statistics. Solar accounts for more than 50% of the new electrical generating capacity added to the U.S. grid at the beginning of 2023. Array’s focus on utility-scale solar, a sector not facing structural demand weakness, positions the company favorably within a growing market.
While short-term project timing issues persist, positive indicators include the doubling of the domestic project pipeline from June to September. The company’s ability to secure multiple gigawatts of quoting activity and long-term agreements for future projects provides a promising outlook for sustained growth.
Additionally, Array’s strategic expansion plans, including leasing a new manufacturing campus, exemplify a focus on innovation and scalability. The rollout of services and training offerings diversified its revenue streams and supported the company in capturing additional market share.
Array’s plans to expand operations include a new manufacturing campus in Albuquerque. It highlights a focus on scalability and operational flexibility. This strategic move positions the company to meet growing demand and drive further operational efficiencies.
Introducing non-tracker revenue streams, such as services and training offerings, demonstrates a strategic diversification of income sources. These offerings may initially constitute a small portion of revenue. However, the company envisions them contributing significantly to the overall gross margin in the long run.
Finally, despite challenges such as ICMS reclassification and project delays, Array maintains a positive outlook for the full year. The increase in the gross margin outlook for both business segments, along with the reaffirmation of adjusted EBITDA and EPS guidance, reflects confidence in sustaining profitability. This easily earns its spot on our list of under the radar stocks to watch.
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.
