Finding stocks with solid growth potential is essential to take advantage of new chances in today’s volatile market. These three exceptional firms each provide solid arguments for considering them as potential stocks to buy to double your money. Knowledge of their market positioning, strategic objectives and financial performance is crucial for assessing their prospects for long-term, steady growth. The foundations of these businesses include leadership in IoT and 5G technologies. There is an exceptional financial discipline with increased liquidity and lower financing costs.
Similarly, profitability may be attained through skillful cost control in healthcare and efficient operations. Moreover, the fundamental qualities here are strategic investments and a robust balance sheet with the flexibility to edge on opportunities and maximize profits. Those searching for companies with solid fundamentals and attractive growth trajectories may find that these are not simply stocks to monitor but stocks to buy for decisive long-term returns.
Inseego (INSG)
Inseego (NASDAQ:INSG) leads 5G and Internet of Things (IoT) solutions and provides mobile and fixed broadband devices and cloud solutions. With a non-GAAP gross margin of 38.7% in Q1 2024, Inseego reached one of its greatest levels in the previous seven quarters. Favorable product mix and operational efficiencies —including one-time perks like component rebates — supported this increase.
Moreover, as of Q1, Inseego had $12.3 million in cash, a substantial increase over the previous year. Operational cash flows and a prepayment from a significant client allowed the company to willingly repay and terminate its Asset-Based Lending (ABL) arrangement. This termination supported increased liquidity. As a result, interest costs decreased, improving financial freedom. In addition to saving interest costs, terminating the ABL loan allowed the company to look into other financing arrangements. Thus, with a strategic focus on capital optimization and cost reduction, Inseego has taken a proactive approach to restructuring convertible notes and refinancing initiatives.
Overall, Inseego’s strategic focus on 5G technology and recent financial improvements highlight its potential for growth and profitability, making it a top choice among stocks to buy.
Oscar Health (OSCR)
Oscar Health (NYSE:OSCR) is a technology-driven health insurance company that leverages data to simplify healthcare. For the first time, Oscar Health delivered a positive bottom line, with $177.4 million in net profits for Q1 2024. That’s a $217.1 million gain over the prior year, which is rather impressive.
Further, the company disclosed adjusted EBITDA of $219.3 million, a significant year-over-year (YoY) rise of $168.2 million. Moreover, Oscar’s financial stability is bolstered by positive net income and robust EBITDA growth, supplying the funds required for investments in future expansion plans.
Additionally, Oscar’s selling, general, and administrative expenditure ratio decreased by 8.7% to 18.4%. Meanwhile, its medical loss ratio (MLR) increased by 2.1% to 74.2% YoY. Hence, operational efficiencies, whole-cost-of-care efforts, and disciplined pricing strategies drove these gains. Lastly, reducing the MLR indicates that healthcare expenses are being effectively managed in relation to premium income.
To sum up, Oscar Health’s profitability, along with significant improvements in key financial metrics like EBITDA and medical loss ratio, positions it as one of the promising stocks to buy.
Acacia Research (ACTG)
Acacia Research (NASDAQ:ACTG) is a patent licensing company that monetizes patented inventions. The company’s Q1 2024 EPS was 6 cents. This effect signifies the possibility of a positive bottom-line after deducting non-recurring costs. Additionally, in Q1 2024, the operating loss improved to $2.1 million from $9.3 million in Q1 2023. A higher top-line across all of its categories is responsible for this milestone.
Further, Acacia Research ended up having over $400 million in cash and marketable securities as of Q1. This solid financial basis offers a lot of cash and flexibility to pursue expansion possibilities. Acacia Research continues to maintain a cautious debt profile. As of Q1, its total non-recourse debt at Benchmark was $13.0 million. With 0% overall debt, the parent business had a sound balance sheet structure. Similarly, the $28.6 million realized gain from the sale of Arix Bioscience demonstrates Acacia Research’s capacity to generate value from its investments.
To conclude, Acacia Research’s diversified portfolio, strategic investments and strong financial position, highlighted by robust cash reserves and prudent debt management, make it an appealing addition to the stocks to buy list.
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.
