The future of the U.S. economy appears to be at a pivotal juncture as the Federal Reserve maintains interest rates at a 22-year high, with the possibility of further tightening on the horizon. Despite strong economic indicators, including a robust labor market and faster-than-expected GDP growth, the central bank remains cautious about achieving its 2% inflation target. Fed Chair Jay Powell emphasizes the need for monetary policy to curb inflation, but also hints at proceeding “carefully” with future decisions, given the impact of past rate hikes on the economy.
The economic outlook remains uncertain amid tightening financial conditions and rising geopolitical tensions so, this makes now the perfect time to invest in sure to skyrocket stocks, like Nvidia was.
Zoom Video Communications (ZM)
Zoom Video Communications Inc. (NASDAQ:ZM) is an American-based video conferencing service that grew exponentially as a result of the Covid-19 pandemic. As the number one online meeting platform, Zoom connects international users together through the application. With a valuation of $59.98, ZM has seen a year-to-date decline of 10.02%, but the recent tailwinds promise a great outlook future for the company.
Valued at $11.5 billion in 2022, the communication technology sector holds a strong current standing as well as a great future projection. In 2030, the industry is forecasted to reel in $100.9 billion in revenue, marking a strong 31.1% CAGR for the next 8 years. Zoom holds a solid standing in the industry as a whole, with a current 57% market share.
Financially, Zoom reported a very strong Q2 2023 on all aspects of their postings. For revenue, $1.14 billion was brought in with a 3.57% revenue increase year over year. For net income and diluted EPS, ZM reported $181.97 million and $0.59 respectively, marking impressive figures of 297.76% and 293.33% respective increases year over year. Based on consensus earnings estimates beat forecasts of 26.52% for EPS and 2.18% for revenue.
The largest positive outlook of ZM comes from the usage and development of their Zoom AI Companion feature, which recently hit one million meeting summaries. This developmental service, which includes summaries and transcripts of recordings, has been effective and successful since its recent release. The summary tools are aimed at compelling various businesses to join the premium Zoom subscriptions, to enhance meeting quality and effectivity. With more companies beginning to use this tool, expect for ZM’s profits to jump in the next quarters due to the influx of users.
BioLine RX (BLRX)
BioLine RX (NASDAQ:BLRX) is a therapeutics company driven by drug development in various blood-related regions. With current collaborations with Columbia University and the Washington University School of Medicine, BioLine is in a great place to grow from the current valuation of $1.29, making a year-over-year growth of 52.38%.
The current stage of the biopharmaceutical industry is well off, with positive growth seen from the 2021 revenue of $328 billion. Further, by 2030, expect the sector to bring in $853 billion in revenue, marking a CAGR of 11.3% for that period. BioLine RX, based out of Israel, is one of the only Israeli companies competing in this industry, proving to be profitable for BLRX.
Revenue-wise for BioLine RX, the company is currently in a pre-commercial status with no current products on the market, but expect that to change in the near future after the FDA accepts their new discovery APHEXDA. Although the financial reports all show net negatives across the board, BioLine has managed to keep operating expenses at a low during the time of pre-commercial status, so expect profitability soon.
Overall, the largest strong point of BLRX has been the recent development in their commercial activity. In this September, BioLine RX received the news that APHEXDA, their flagship drug, has just been approved by the FDA to begin commercial testing and activity. This drug, a subcutaneous drug for stem cell transplantation in patients with myeloma, is a major victory in the industry overall due to it being the first stem-cell mobilization product to be approved in 10 years. Expect APHEXDA to carry BLRX to victory, and create profitability.
Broadcom (NASDAQ:AVGO) is one of the world’s largest fabless semiconductor companies. It specializes in designing, developing, and distributing a range of semiconductors and infrastructure software solutions. Because the global semiconductor industry is projected to increase at a 7.42% CAGR between 2023 to 2027, which results in a market size that reaches $736.40 billion by 2027, it is in an excellent position to perform well.
AVGO stock has demonstrated remarkable performance, soaring almost 50.86% in the past year and outperforming competitors. Yet, this stock is regarded as undervalued. Wall Street analysts though predict an average price target of $926.04, with prices ranging from as low as $848.79 to as high as $990.25. In addition, many of these analysts such as Truist Securities and Rosenblatt are recommending to buy or even strongly buy the stock.
Additionally, Broadcom has exceeded market expectations this past year. For instance, it has beaten its last four projected quarterly earnings, dating back to December last year 2022. With the company’s financial report for the fourth quarter of the fiscal year expected to be out this December, analysts estimate that it will perform better this quarter compared to the same quarter in the previous year. Its consensus revenue is estimated to be between $9.24 billion to $9.31 billion with a YoY growth of 3.88%. As for Broadcom’s consensus EPS, it is predicted to be between $10.71 billion to $11.08 billion with a YoY growth of 4.80%.
Broadcom is also able to benefit from the rise of AI. Just two months ago, in September, a division of Broadcom, Symantec, announced a partnership with Google Cloud where it plans on integrating generative AI (gen AI) into its security system, allowing customers to detect, comprehend, and counteract cyber attacks. Cybersecurity has been an ongoing concern within the technology industry and by tackling this issue, Broadcom is able to enhance security measures while eliminating laborious training for their employees.
Broadcom’s latest financials, involvement within the AI industry, partnerships and opportunities for significant growth make this stock very compelling to buy.
On the date of publication, Michael Que did not have (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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.