3 Companies That Could Be the Next Trillion-Dollar Kings
. The economy is healing as the largest economy in the world experienced its quickest pace of expansion in two years. This all happened during the third quarter. A resilient United States consumer base drove this growth, which poses a challenge for Federal Reserve officials. Officials are debating whether further policy tightening is necessary. During this time of massive economic fluctuations, there are several businesses poising themslves to be future trillion-dollar companies.
Despite stagnation in Europe and challenges in Asia, the U.S. remains a global economic powerhouse. The U.S. has personal consumption at the forefront, growing at a 4% rate. This is testing the policy skills of the Fed after nearly two years of interest-rate hikes. The slow healing and positive growth make now the perfect time to invest in future trillion-dollar companies.
Nutanix Corporation (NTNX)
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Nutanix Corporation (NASDAQ:NTNX) is an American cloud computing company that specializes in cloud services, storage and software. Yahoo! Finance has 13 analysts predicting a one-year price range on NTNX to be between $35.00 and $51.00, with a mean of $43.76.
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The cloud computing industry is expected to reach a valuation of $1.387 trillion by 2030, growing at a 14.1% CAGR. Growth factors include cloud computing’s ability to improve business performance in large enterprises and increased use in small to midsize businesses. This may streamline operations which increases the cloud-computing market size.
NTNX boasts healthy financials. The company reports a Q3 2023 revenue of $494.2 million dollars which grew at a 28.1% one-year CAGR, EPS of $0.24 growing 241.1% YoY, and operating expenditures of $443.6, down 7.5% YoY. Management has been able to reduce operational expenditures while growing assets. This was seen through $2.5 billion total assets which grew 6.8% YoY, and $1.4 billion cash from short-term investments, growing 8.5% YoY.
Nutanix positions itself for growth through key partnerships. Nutanix has forged a global partnership with Cisco, creating a complete hybrid (public and private) cloud solution to simplify customer operations. The solution will be developed within the next 90 days by integrating Cisco’s servers, network, and security capabilities into Nutanix’s Cloud Platform Software. The solution developed by this partnership will be the global answer to growing operational hurdles and security concerns that come with multi-cloud complexity. Nutanix is closing in on becoming one of the future trillion-dollar companies.
Honeywell International Incorporated (HON)
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Honeywell International Incorporated (NASDAQ:HON) is an American conglomerate company with operations across multiple industries. The company strengthened its quantum computing division through a merger with Cambridge Quantum Computing in 2021. Yahoo! Finance has 21 analysts predicting a 1-year price range on HON to be between $180.00 and $265.00, with a mean of $215.76.
Furthermore, HON boasts strong financials. For Q2 2023, HON reports $9.1 billion in revenue, growing at a 1-year 2.16% CAGR. Honeywell demonstrates robust profitability through a net profit margin of 16.2%. The net profit margin grew 15.4% YoY, and a free cash flow of $1.1 billion, growing 60.2% YoY. Management exhibits its superior capabilities of handling operational expenditures and returns on investment through a levered FCF margin of 12.7% and ROTC of 11.9%, both well above sector medians.
Moreover, Honeywell is positioned for future returns by being the first to market in integrating quantum computing in utilities. Honeywell has partnered with utility companies in Houston, implementing its quantum-computing encryption keys into utility meters to prevent cyber-security threats. The cyber-security market is forecasted to grow due to an increasing presence of cyber-attacks across industries. Honeywell has entered a growing market and will continue to expand its customer base to industries in need of protection.
Honeywell has also partnered with quantum computing company Aegiq to create better technology solutions for space payloads such as small satellites. The planned solution combines Honeywell’s atmospheric sensing expertise and Aegiq’s ATLAS quantum computing networks to deploy assets between space and Earth to a marked location with more accuracy than is currently possible.
Honeywell has strong financials, the growing need for cybersecurity protection, and partnerships that allow for customer base expansion. All in all, this makes Honeywell a quantum computing stock to buy now in October.
Fiverr International Ltd. (FVRR)
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Fiverr International Ltd. (NYSE:FVRR) connects freelancers to businesses through its online marketplace. FVRR is down 21.35% YTD at $22.55 per share and is expected to grow 121.17% YoY to $51.20 in 2024. WSJ analysts give FVRR 8 ‘Buy’ ratings and forecast a median price target of $40.00, ranging from a high and low of $50.00 to $33.00.
FVRR has reported solid Q2 financials, with a revenue of $89.4 million, representing a YoY increase of 5.1%. The company predicts a revenue outlook between $89.5 million and $92.5 million for Q3. Or, Fiverr will get a YoY growth of up to 12%. A surge in EPS was also reported at 0.49, displaying a YoY growth of 308.33% in Q2.
In Q2 2023, FVRR announced a new program named Fiverr Business Solutions. This new program contains three different sub-programs: Fiverr Pro, Fiverr Certified, and Fiverr Enterprise. The Fiverr Pro program enables businesses to access a curated catalog of Pro freelancers. Some clients include companies like Netflix, Skechers, and Hitachi.
Fiverr is expected to experience significant growth in the coming years due to its ingenious programs and the growth of the global e-commerce market.
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.
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