For those hoping to profit from future development, figuring out which prospective tech stocks to buy is essential in the ever-changing world of investing prospects. These three exceptional businesses represent tenacity, inventiveness, and strategic vision in their respective fields. These businesses have strong core competencies, such as market leadership in e-commerce platforms and cloud services. It has demonstrated outstanding financial success with almost quadrupled revenues and enhanced profitability.
Similarly, a healthcare insurance market company is growing well thanks to efficient pricing techniques and the first-ever achievement of positive net income. Lastly, one of these businesses excels in the payments sector, overcoming obstacles like fierce competition.
To put it briefly, a thorough study of these firms’ financial strengths and strategic objectives reveals their potential to yield substantial profits while maintaining a competitive advantage in the rapidly evolving distribution, life and health insurance, and financial technology sectors.
GigaCloud (GCT)
GigaCloud (NASDAQ:GCT) delivers cloud services and operates an e-commerce platform. Consolidated top-line for the company boosted to $251.1 million in Q1 2024, nearly doubling from $127.8 million in Q1 2023. With a growth rate of 96.5%, GigaCloud has demonstrated that it can sharply execute its strategic ambitions. These ambitions include expanding the company’s service portfolio and integrating acquisitions. The gross margin of GigaCloud uplifted to 26.5% in Q1 2024. Hence, this boost in gross margin to $66.5 million represents 124.7% growth (from 23.1% in Q1 2023) and highlights the company’s capacity to control expenses while growing its business.
Additionally, GigaCloud continues to hold a strong lead with vital improvements in several market metrics. For instance, in the 12 months ending in Q1 2024, the gross merchandise value (GMV) of the GigaCloud Marketplace increased to $908 million, a 64% boost over $553.5 million in Q1 2023. Hence, this growth signifies GigaCloud’s appeal to third-party vendors to utilize GigaCloud’s platform to magnify exposure and generate leads.
Overall, GigaCloud’s strong revenue growth, expanded marketplace metrics, and improved profitability make it a top choice among tech stocks to buy.
Oscar Health (OSCR)
Oscar Health (NYSE:OSCR) focuses on healthcare insurance through technology and customer-centric approaches. The company generated $2.1 billion in sales for Q1 2024, a considerable 46% yearly growth. Oscar Health’s progressive market tactics have allowed it to capture a bigger part of the Affordable Care Act marketplace. This top-line boost results from the company’s outstanding client acquisition and retention efforts.
Additionally, a critical accomplishment for Oscar in the first quarter was reaching $177.4 million in net income. This is positive for the first time in the company, indicating an enhancement of $217.1 million compared to Q1 2023.
Further, Oscar Health’s increasing operational effectiveness and financial stability are demonstrated by the positive net income. This reflects their rising membership base, cost-effective cost-management programs, and controlled pricing tactics. The business increased its Medical Loss Ratio (MLR) to 74.2% by 210 basis points annually. Hence, this improvement shows that, compared to premium revenue, Oscar Health is managing healthcare expenses successfully.
In short, with significant revenue growth, positive net income, and efficient cost management, Oscar Health stands out as a solid pick on the tech stocks to buy list.
PayPal (PYPL)
PayPal (NASDAQ:PYPL) leads in digital payments. EPS grew by 27% year-over-year (YoY) in Q1 2024, surpassing projections due to PayPal’s wise investment decisions and efficient cost control. In terms of profitability, PayPal has an EPS growth trajectory. Additionally, The operating margin increased by 0.84% to 18.2%, demonstrating that the company has disciplined cost control and improved operational edge. With 427 million active accounts, PayPal saw growth in both merchant and consumer accounts. This indicator reflects that PayPal can draw in and maintain a sizable user base across its platforms.
Moreover, there were 220 million monthly active accounts in Q1, a 2% YOY increase. This boost shows that PayPal’s services are still used mainly worldwide. On a trailing 12-month basis, the average number of transactions per active account increased by 13% to 60. Hence, this indicator shows rising user activity and PayPal’s growing penetration into its users’ everyday financial activities.
Overall, PayPal’s constant growth in EPS, expanding active user base, and strategic expansions into new markets make it one of the top tech stocks to buy.
As of this writing, Yiannis Zourmpanos held a long position in PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
