The future of the U.S. economy looks promising, with strong indicators of growth on the horizon. The gross domestic product surged at an impressive rate of 3.2% in the last quarter of 2023, signaling robust economic health. Increased personal income in early 2024 has bolstered consumer spending, essential for driving economic momentum and job creation. Although there are concerns about inflation and specific sector layoffs, the overall outlook remains positive, with the labor market expected to stay solid and monetary policies likely to ease shortly. With continued intelligent financial decisions and careful monitoring of economic trends, the US economy can navigate upcoming challenges and continue its growth trajectory.
The economy is looking to pack a punch in terms of future growth and positive economic potential. You need to invest in companies that will match this same strength, low-profile companies, meaning that they have yet to be touched by Wall Street, ensuring you will get a high discount if you buy now – you are sure to score high profits.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) develops and builds electric vertical takeoff and landing aircraft. While its stock has fallen almost 21% YTD, currently trading for $4.91, analysts are optimistic about its future performance. The 7 analysts covering Joby hold a median price target of $8.00, representing a 63% increase from current levels.
In Q1 2024, Joby’s second production prototype aircraft rolled off of the company’s pilot production line, marking a significant milestone in Joby’s plan to ramp up production. While the company is still far from profitability, achievements such as producing a second aircraft show that Joby is making significant steps toward entering commercial service. Additionally, Joby is building a solid financial position and maintaining a strong balance sheet, ending Q1 with $924 million in cash and short-term investments.
Moreover, Joby recently announced multiple partnerships, demonstrating the company’s effective sales strategy. Joby signed an agreement with Mukamalah, an aviation subsidiary of Saudi Aramco, and aims to introduce eVTOL aircraft to Saudi Arabia. The signed contract is expected to lead to the direct sale of Joby’s aircraft to Mukamalah, expediting Joby’s entry into the Saudi Arabian market.
SoFi Technologies (SOFI)
Financial technology provider SoFi Technologies (NASDAQ:SOFI) offers various services and products for personal finance. Because it is an internet bank, SoFi can provide better interest rates and lower expenses than its rivals. For $6.92, the stock is down around 30% YTD. Wall Street analysts have noted that the stock has a 25% upside potential.
The financial technology market now anticipates growth at a compound annual CAGR of 16.5%. By 2032, the US market could reach a $1.15 trillion valuation. Considering the industry’s expansion, SoFi ought to be a top option. In addition to a massive 33% increase in the financial services segment, SoFi’s most recent earnings report showed a 26% increase in net revenues. Furthermore, due to a 35% rise in membership and product count, SoFi had an 86% increase in profits over the same period last year.
Despite its sluggish development thus far, SoFi is unquestionably a fantastic company to choose for long-term growth. After acquiring Golden Pacific Bancorp, which enabled it to provide deposits, SoFi is now profitable and has the financial stability it lacked previously. Due to its vertical integration of the technology and financial markets, SoFi has an advantage over its competitors in drawing in new clients.
PowerFleet (PWFL)
PowerFleet (NASDAQ:PWFL) provides wireless Internet-of-Things (IoT) asset management solutions to help businesses track, manage, and control their high-value assets. After climbing almost 70% in the past year, its stock currently trades for $5.32. Wall Street analysts are incredibly bullish on the stock, with a $9.00 median price target, representing a 69% increase.
In Q4 2023, PowerFleet generated $34.5 million in total revenue and $2.9 million in adjusted EBITDA, up 9% YOY and 110% YOY, respectively. During the quarter, the company also generated $3.3 million in unleveraged free cash flow. PowerFleet still achieved substantial top and bottom-line growth despite macroeconomic challenges and acquisition expenses. So, with notable financial improvements and apparent operational resilience, the company is on track to deliver improved efficiency and high growth.
In April 2024, PowerFleet finalized its business combination with MiX Telematics, a leading global fleet and mobile asset management solutions provider. The revolutionary combination will transform PowerFleet into a top-tier global IoT software-as-a-service provider, positioning the company for accelerated growth and increased profitability.
Most notably, as PowerFleet executes its business integration strategy, the newly combined businesses are expected to unlock a $25 million EBITDA expansion within the first two years. Furthermore, the now combined customer base boasts more than 1.8 million subscribers, of which 7,500 are enterprise customers. This provides PowerFleet with a significant opportunity.
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.
