If you’re hunting for stocks with massive upside this month, look no further. Finding the following big winners in the wide world of the stock market may be difficult because possibilities frequently lie in plain sight. But despite all the chatter and conjecture, three jewels are lying low, glimmering with promise. These stocks provide appealing chances for individuals prepared to explore their potential further, but popular investors frequently disregard them.
The first stock, a beacon of stability in turbulent times, has consistently grown its revenue and managed its expenses with finesse. Its ability to maintain a high contract renewal rate signifies a steady income stream and underscores client satisfaction. This resilience makes it a safe haven in volatile markets. Similarly, the second stock has seen a sales and operating margin growth surge, with its foray into the enterprise category hinting at untapped potential.
In the meantime, the third company’s solid boost in net income and total revenue shows how adept it is at gaining a market lead and encouraging customers to use its financial services. The company’s dominance in the fintech industry is further cemented by the boost in Total Finance Volume (TFV).
Stocks With Massive Upside: Unisys (UIS)
In 2023, Unisys (NYSE:UIS) held a 1.8% year-over-year (YOY) increase in sales, both reported and adjusted for constant currency. This signifies that, despite macroeconomic adversities, there is a stable market for the company’s offerings. With a non-GAAP operating margin of 7% for the year, the business demonstrated its capacity to control expenses while accelerating sales growth.
Furthermore, the adjusted EBITDA margin demonstrated solid bottom-line levels at 14.2%. In 2023, Unisys had an impressive 96% renewal rate for contracts with a total contract value (TCV) of $1 million or more. This is an indication of very satisfied and devoted customers. Hence, the constant contract renewals give the business a stable source of income, bolstering its coffers and expanding its prospects.
In 2023, Unisys’ New Business Total Contract Value (TCV) increased by 18% YOY. This demonstrates the company’s ability to extend its clientele and penetrate new markets. The 19% YOY boost in the new business pipeline is evidence of the company’s capacity to spark opportunities and enthusiasm among potential customers. Overall, the solid growth in new business signings and pipeline development positions Unisys well for top-line growth and market expansion.
Pagerduty (PD)
PagerDuty (NYSE:PD) saw a 16% YOY increase in sales in fiscal 2024, totaling $430.7 million. Similarly, revenue increased by 10.1% YOY to $111.1 million in Q4 alone. This stable increase in income shows that the business can draw in new clients, build its market lead, and create a growing demand for its services.
Further, PagerDuty has seen a considerable increase in operating profit; non-GAAP operating margin increased from 1% to 13.1% in 2024. Hence, this illustrates the business’s operational sharpness and capacity for profitable growth.
Moreover, the number of clients with an annual revenue of over $100K increased to 804 in 2024, a 7% YOY boost. Similarly, the business saw a quarter-over-quarter doubling of yearly net new additions to the cohort of consumers paying above $100,000. This demonstrates PagerDuty’s accomplishments in growing its market lead among high-value clients and breaking into the enterprise sector.
Finally, this pattern suggests that PagerDuty’s revenue growth prospects are favorable, as the enterprise market generally provides larger margins and longer-term revenue commitments. Therefore, these fundamental progressive elements will boost the company’s market valuations in upcoming quarters.
PagSeguro (PAGS)
PagSeguro (NYSE:PAGS) has seen solid bottom-line growth under GAAP and non-GAAP conditions. The business generated non-GAAP net income of R$520 million for Q4 2023, a boost of 26.6% YOY. Likewise, the GAAP net income increased considerably by 19.7% YOY to R$488 million. This solid increase in the bottom line highlights the business’s capacity to seize market edge, improve operations, and spur bottom-line growth.
Moreover, against obstacles like the Christmas season’s effect on take rates, PagSeguro posted an impressive 10% YOY increase in top-line in Q4 2023, ending the year with about R$16 billion in revenue. This stable revenue increase demonstrates the efficacy of PagSeguro’s business strategy and its capacity to make a sizable profit from a wide range of financial services and payment options.
Finally, TFV (formerly known as TPV) increased considerably for PagSeguro to R$280.6 billion, a major increase of 34.3% from Q4 2022. Hence, the considerable increase in TFV shows PagSeguro’s expanding market lead and the growing use of its banking and payment services by individuals and companies, both of which drive revenue growth.
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.
