3 Future Tech Titans Eyeing Substantial Gains by 2025
The future of the U.S. economy appears promising as indicated by recent economic reports. The Federal Reserve’s Beige Book regional survey suggests that while manufacturing has faced some decline, strong travel activity and optimistic expectations from businesses, driven in part by the prospect of lower interest rates, contribute to a positive outlook.
Additionally, buoyant retail sales exceeded expectations in December and various economic indicators, such as stable wages, job opportunities, lower interest rates, and an improving housing market, align with the sentiment of a robust economy in 2024.
Businesses are entering the year with confidence, reflecting a positive global business optimism and investment confidence. Despite some concerns, the overall outlook suggests a favorable trajectory for economic growth and stability. This means that now is the time to invest in innovation, starting with these three tech stocks poised for big gains in the next 12 months.
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Shoals Technologies Group Inc. (SHLS)
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Shoals Technologies Group Inc. (NASDAQ:SHLS) provides electrical balance of system (EBOS) solutions for solar energy projects conducted by engineering, procurement, and construction firms. The stock currently trades for $13 and 17 analysts have a price target of $25.00, an astounding 88.40% increase from the current price. Moreover, 14 of the 17 analysts assigned a “buy” rating to Shoals Technologies.
In its last earnings report, Shoals Technologies achieved a record quarterly revenue of $134.2 million, representing a YoY growth of 48%. It also reported adjusted EBITDA of $48.0 million, up 81% YoY. For the full year ending December 31, 2023, management predicts revenue to be between $485 million and $495 million, between a 48.3% and 51.4% improvement over the prior year.
Until recently, Shoals Technologies has been focusing on its business in the United States, but it is now putting more effort into its international business. In the past few months, it experienced strong growth outside of the United States, and international orders now make up more than 10% of its backlog and awarded orders. The international market offers substantial growth opportunities for Shoals Technologies, and the company’s strong financials position it for success in the global markets.
Axcelis Technologies Inc. (ACLS)
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Axcelis Technologies (NASDAQ:ACLS) is an American manufacturing company focused on developing and maintaining worldwide semiconductor products. Currently valued at $131, analysts predict ACLS to grow to $175, representing a 33% value increase.
Financially, ACLS reported positives across the board in Q3 2023, further exceeding expectations. In the revenue department, ACLS brought in $292.33 million, a YoY net growth of 27.56%. Similar favorable results were mirrored in both net income and diluted EPS, seen by the $65.93 million and $1.99 respectively, marking YoY growth of over 63%. Ultimately, ACLS’s performance outperformed consensus industry estimates, with analysts’ forecasts in revenue and EPS being beaten by 4.31% and 14.92% respectively.
After boasting a strong Q3 ‘23, Axcelis is primed for an even larger 2024. Largely, revenue and business are projected to skyrocket in light of an AI revolution in the semiconductor industry. With ACLS being a semiconductor distributor, it is set in a prime position to benefit from surges in the semiconductor business. Further, with expectations for the EV market to surge in 2024, Axcelis is slated to reap the rewards of supplying electric vehicle brands with semiconductor chips.
UiPath Inc. (PATH)
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UiPath Inc. (NYSE:PATH) offers a range of automation solutions that help businesses automate their processes. Currently trading at $21.62, its stock has skyrocketed 50.56% in the past 12 months. Analysts are optimistic, and 16 analysts offer a median price target of $24.50, a 13.3% increase from the current price.
In its last earnings statement, UiPath reported $1.378 billion in ARR and $44 million in non-GAAP operating income, a 24% and 244% increase YoY respectively. The company also boasted a gross profit margin of 84.39% this past quarter, surpassing the sector median of 48.86%. Looking to the future, management expects a non-GAAP operating income of $78 million, exhibiting growth of 77% QOQ. UiPath exhibits financial stability through its impressive financials.
Moreover, the company is applying AI-powered computer vision to its products and integrating generative AI into its platforms. Uipath recently launched “Project Wingman,” enabling customers to create automation processes with natural language prompts. It also released UiPath Autopilot, an AI companion that streamlines daily tasks, enabling users to be more productive. These new products will bolster UiPath’s portfolio of tools, helping it grow its competitive advantage.
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.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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