Opportunities frequently appear out of nowhere when underdog businesses triumph against the odds thanks to shrewd planning and forethought. The companies on this list all embody the spirit of the underdog, even though they operate in different industries. Their strategic growth plans make all three of these companies hidden gem stocks that will conquer the market.
The first company is creating a lineup of exoskeletons that promises a large income stream, particularly if Medicare covers its devices. The second is leveraging urbanization trends by enhancing its operations through strategic investments and margin development. The third is bolstering its position in the energy industry through creative projects and long-term collaborations.
These businesses represent resilience, strategic insight and adaptability, all qualities necessary for survival and expansion in the current competitive environment. Rather than merely being singular success stories, these companies are poised for continued growth.
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Lifeward, previously known as Rewalk Robotics (NASDAQ:LFWD), expects increased market penetration and top-line potential for its exoskeleton products once the Centers for Medicare & Medicaid Services (CMS) finalize the Home Health Rule in 2024. When Medicare starts to cover exoskeletons in its brace benefit category, there is a large opportunity for Lifeward’s market expansion. People with spinal cord injuries will have more access to ReWalk exoskeletons.
Some of Lifeward’s other strategic goals include developing stronger clinic-driven relationships, encouraging referrals and concentrating sales efforts on physicians. Lifeward seeks to effectively identify qualified patients for exoskeleton use by educating and supporting the medical community. This will allow the company to maximize Medicare coverage and spur top-line growth.
The Food and Drug Administration (FDA) recently approved a new version of the ReWalk exoskeleton, and Lifeward plans to introduce a new AlterG anti-gravity version as well. Lifeward hopes to lead the rehabilitation sector in technical innovation by integrating artificial intelligence (AI) into functional prototypes, enhancing exoskeleton usability and capabilities.
Lifeward projects revenue between $28 million and $32 million for 2024. While it may not be a stock you’ve heard of, LFWD might just be one of the hidden gem stocks that will conquer the market.
Cemex (CX)
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The Urbanization Solutions division of Cemex (NYSE:CX) has grown quickly, with a compounded annual growth rate (CAGR) of 24% since 2019. This sector could be a major driver of future growth since it contributes considerably to consolidated EBITDA and has increased its margin. The department’s growth potential is further enhanced by its congruence with building sector trends.
Small bolt-on and margin enhancement investments throughout Cemex’s key businesses and markets are the focal point of the company’s growth strategy. These investments have proven progressive, with an internal rate of return over 25%, bolstering the bottom line. Cemex has demonstrated its capacity to pursue expansion prospects effectively. This can be observed in the scalable nature of its strategy and the sizable approved project pipeline.
Cemex reached investment-grade credit standards by lowering its leverage ratio from 2.84x to 2.06x. This shows the company’s focus on improving its financial standing, and its capacity to seize development possibilities. Cemex’s return on capital increased by 1.5 percentage points to over 14% for 2023, demonstrating its effective use of resources.
SunCoke Energy (SXC)
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In its 2024 projection, SunCoke Energy (NYSE:SXC) stated that it anticipated consolidated adjusted EBITDA to be between $240 million and $255 million. The poor commodities markets may provide challenges for the logistics segment. However, the company is focusing on growth and innovation, as evidenced by its continued work on the Granite City GPI project. SunCoke Energy is positioning itself for future growth and market competitiveness by investing in innovative projects and technology.
The domestic coke business of SunCoke Energy performed well in 2023 despite market problems. The company’s durability and competitive posture in the industry are highlighted by its ability to maneuver through tough market situations. To position its coke facilities positively for the future, SunCoke Energy has obtained long-term contracts like the renewal of its Indiana Harbor contract. These tactical alliances reduce market volatility by offering stability and revenue visibility.
By finishing a project to develop foundry coke and renewing its 12-year contract with Cleveland-Cliffs, the company increased its market share in the foundry industry. These programs show how aggressive SunCoke Energy is in seizing market opportunities and establishing enduring alliances, highlighting how it’s another one of the hidden gem stocks that will conquer the market.
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.
