3 Overlooked Stocks Poised for Extraordinary 10X Growth
In the churning sea of stocks, where the giants often grab the spotlight, lie hidden treasures — quiet, unassuming, yet brimming with unparalleled potential. Picture this: a trio of overlooked stocks with 10X potential, silently amassing strength and poised for growth with a meteoric rise. Their strategies, veiled from the fervent gaze of mainstream markets, are akin to undiscovered constellations glittering in the night sky.
Read more to peel back the obscurity layers and reveal these overlooked stocks with 10X potential.
Sterling Infrastructure (STRL)
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Sterling Infrastructure (NASDAQ:STRL) has attained 11 consecutive quarters of year-over-year net income growth. This suggests the company’s operational efficiency and strategic planning. This consistent upward trend indicates that Sterling has weathered economic fluctuations and capitalized on opportunities effectively.
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In Q3 2023, the 13.7% increase in revenue is accompanied by the 42% growth in the backlog from the initiation of 2023. A backlog of over $2 billion suggests a healthy pipeline of projects, providing visibility and stability for upcoming earnings.
In detail, E-Infrastructure Solutions, despite a slight decline in revenue and margins in certain areas due to timing issues and market softness, displayed robust growth in backlog, signaling solid prospects.
Similarly, in Transportation Solutions, there is a notable increase in revenue (nearly 23% year-over-year) and margin expansion of 1.3%, highlighting the segment’s strong performance and margin improvement. The growth in operating income by 49% showcases effective operational management and strategic positioning within the transportation sector. There were awards of $472 million in the quarter and a subsequent backlog growth of 14%. Hence, this indicates solid demand and the company’s competitive strength in securing contracts.
Lastly, in Building Solutions, revenue growth of 41% outperformed the national market significantly. This points toward solid market positioning and client satisfaction. Furthermore, the segment’s operating profit margin remains strong at 11.3%, driving income growth of 38% and reflecting effective cost management and margin optimization strategies.
Finally, Sterling’s robust revenue growth, coupled with a substantial increase in backlog, demonstrates the company’s ability to secure and execute projects progressively. Hence, these achievements indicate strong market demand for Sterling’s services.
Opera (OPRA)
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User base and monetization are key drivers of Opera’s (NASDAQ:OPRA) value growth. The average revenue per user (ARPU) growth was 11% in Q3 2023 compared to Q2. This suggests Opera’s lead in extracting more value from its user base. Furthermore, the specific focus on Western users, resulting in an 11% increase in ARPU, highlights Opera’s targeted efforts toward higher-value demographics. This strategic shift toward more monetizable user segments has notably contributed to overall ARPU growth.
Furthermore, advertising revenue has seen a significant increase of 24% compared to the previous year. The ad revenue constitutes 39% of overall revenue, indicating Opera’s strong foothold in the advertising market. This growth was driven by increased revenue from owned and operated (O&O) advertising and audience extension businesses. The clear identification and leveraging of advertising revenue opportunities further solidify Opera’s position as a strong player in the digital advertising domain.
Looking at strategic initiatives, Aria, Opera’s internally developed browser AI, signifies a strategic leap towards enhancing user experience and engagement. In the same direction, Opera GX has grown with a 10% sequential increase in monthly active users (MAU) to 26 million in Q3. This represents the company’s relevance and popularity among users. The substantial growth in ARPU by 16% sequentially and 23% year-over-year positions Opera GX as one of the best-monetized products. This browser’s success reflects Opera’s ability to cater to niche markets effectively and monetize specific user segments, such as gamers.
The updated guidance for Q4 2023 anticipates revenue with a substantial 16% year-over-year growth. The adjusted EBITDA projection suggests Opera’s confidence in sustaining profitability and margin expansion. Therefore, this revised guidance exceeds prior estimates, indicating the company’s optimistic outlook and strong performance trajectory.
Concentrix (CNXC)
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Concentrix’s (NASDAQ:CNXC) technological differentiation, particularly in integrating AI solutions, sets it apart in the competitive landscape. The company’s focus on digital CX solutions and its unique digital IT service capabilities position it as a leader among its traditional CX peers. With thousands of staff proficient in designing, deploying and integrating technology-infused solutions at scale, Concentrix stands out for providing advanced services.
Additionally, deploying generative AI solutions internally and with select clients highlights Concentrix’s focus on leveraging cutting-edge technology for enhanced productivity. The AI and Alex-based recruiting platform, supporting millions of career site visits and processing millions of applications, exemplifies how technology is used to scale operations cost-effectively. The AI-based workforce management solution optimizing scheduling for over 115K staff indicates tangible utilization and user experience benefits.
Furthermore, Concentrix’s proprietary AI smart assist product, used by over 190 team members, exemplifies the company’s focus on automation for improved productivity. Implementing AI-based quality automation platforms, which analyze 100% of customer interactions, indicates the company’s focus on driving insights and efficiency.
Moreover, completing the transformative combination with Webhelp marks a historic milestone for Concentrix. This strategic acquisition has endowed Concentrix with distinct advantages that enhance its differentiation and set the stage for transformative growth. Adding new expertise, such as know-your-customer services and anti-money laundering capabilities, bolsters Concentrix’s offering for financial clients.
Lastly, the acquisition brings IT services at scale in EMEA (Europe, the Middle East and Africa) and deeper domain expertise in core verticals. This strategic move has resulted in a robust footprint spanning over 70 countries, significantly expanding Concentrix’s global presence. Overall, the ability to offer tailored solutions on a global scale strengthens Concentrix’s value proposition.
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.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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