Picking stocks to buy before a market surge in price can be tricky. So many different variables make investors flock to a particular company and invest. It can also be challenging to predict when an upcoming market rally will happen. Similar to picking stocks, investors can be unpredictable regarding overall market action.
I discuss three companies from different sectors that offer potential upside if a market rally does occur because these stocks listed below are all ones that have seen growth within the last year and have continued to attract investors, leading to the possibility of a spike in volume during a potential rally.
Comcast (CMCSA)
Comcast (NASDAQ:CMCSA), located in Philadelphia, Pennsylvania, is a communication service that provides residential and businesses with media services such as broadband and wireless connectivity. They operate NBCUniversal, a television network, Peacock, a streaming service and Sky channels, their international television segment. Comcast owns Universal theme parks in Florida, California, Japan and China.
Over this past year, their stock price has increased by 16% due to increased revenue from their streaming service Peacock, share buybacks, growing dividend payouts and increased free cash flow despite the drop in customers of their broadband product. Comcast is still trading at a steal for investors even after a considerable gain in share price recently.
On Oct. 26, Comcast reported earnings for the third quarter of 2023, stating that total revenue remained practically unchanged and free cash flow increased by 19% compared to the previous year. The number of paid subscribers to their streaming platform Peacock has grown by 80%, and their theme park sales have grown by 20% within the previously mentioned period. Comcast anticipates the release of its fourth quarter and full-year earnings on Jan. 25.
Abercrombie & Fitch (ANF)
Abercrombie & Fitch (NYSE:ANF), headquartered in New Albany, Ohio they are an apparel retailer that sells products under their brands Abercrombie, Hollister, Gilly Hicks and Social Tourist. They distribute and sell their products through multiple avenues, including over 400 retail locations, franchises, wholesale and online platforms.
Abercrombie & Fitch has seen their share price quadruple since May of 2022. This is due to several very positive earnings reports and an improved business outlook for the future. On Nov. 21, they announced earnings for the third quarter of 2023, which stated that their total revenue increased 20% compared to the previous year. For Q3 2022, they reported a net loss of 718,000; in Q3 2023, that shifted to a net gain of $98 million. Abercrombie has seen double-digit growth in international sales within this last year.
They also saw a bump in their share price following news that their holiday sales went better than expected, and as a result, they raised their full-year outlook for 2023.
VirTra (VTSI)
VirTra (NASDAQ:VTSI), located in Chandler, Arizona, offers training simulations for military, law enforcement and government uses. They primarily work with organizations to produce real-world scenarios and train their personnel in using force and firearms. They also offer a wide range of simulators for different purposes.
On Nov. 14, they reported earnings for the third quarter of 2023, stating total revenue growth of 54% and their gross profit more than doubled compared to the year before. The company has seen growth in its production capacity and has released a new product called the V-XR, an extended reality headset. Since this recent positive earnings report, their stock has more than doubled.
VirTra is a small company with a market cap of only $125 million. Their latest earnings report shocked investors, and the demand for the tech they offer is expected to grow. The company is poised to take advantage and give its investors significant returns.
As of this writing, Noah Bolton held a LONG position in ANF. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
