The future of the American economy appears promising, as indicated by recent economic reports. The Fed's Beige Book regional survey indicates that although manufacturing faced some decline, strong travel activity and upbeat expectations from businesses, driven in part by the possibility of lower interest rates, are contributing to a positive outlook.
Additionally, booming retail sales exceeded expectations in December, and various economic indicators, such as stable wages and job opportunities, lower interest rates and an improving housing market, are consistent with strong economic sentiment in 2024.
Businesses enter the year with confidence, reflecting positive global business optimism and investment confidence. Despite some concerns, overall expectations point to a positive trajectory for economic growth and stability. That means it's time to invest in innovation, starting with the three tech stocks that are poised for big gains in the next 12 months.
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Schulz Technologies Group (SHLS)
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Schulz Technologies Group (Nasdaq:SHLs) provides Electric Balancing System (EBOS) solutions for solar projects undertaken by EPC companies. The stock is currently trading for $13 and 17 analysts have a price target of $25.00, a staggering 88.40% upside from the current price. Furthermore, 14 out of 17 analysts have assigned a “buy” rating to Shoals Technologies.
In its most recent earnings report, Shoals Technologies generated record quarterly revenue of $134.2 million, representing year-over-year growth of 48%. It also reported adjusted EBITDA of $48.0 million, up 81% year over year. For the full year ending December 31, 2023, management expects revenue to be between $485 million and $495 million, an improvement of 48.3% and 51.4% compared to the prior year.
Until recently, Shoals Technologies focused on its U.S. business, but it is now putting more effort into its international business. In the past few months, it has seen strong growth outside the US, and international orders now make up more than 10% of its backlog and awarded orders. The international market provides significant growth opportunities for Shoals Technologies, and the company's strong financial position positions it for success in global markets.
Accelis Technologies (ACLS)
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Accelis Technologies (Nasdaq:ACLS) is an American manufacturing company focused on developing and maintaining semiconductor products worldwide. Currently valued at $131, analysts expect ACLS to grow to $175, representing a 33% increase in value.
Financially, ACLS reported positive results across the board in the third quarter of 2023, exceeding expectations. In the revenue department, ACLS brought in $292.33 million, a net year-over-year growth of 27.56%. Similar positive results were reflected in both net income and diluted earnings per share, which were $65.93 million and $1.99, respectively, representing year-over-year growth of more than 63%. Ultimately, ACLS outperformed consensus industry estimates, beating analysts' expectations in revenue and EPS by 4.31% and 14.92%, respectively.
After posting a strong 3Q23, Axcelis is poised for an even bigger 2024. It is highly expected that revenues and business will rise significantly in light of the AI revolution in the semiconductor industry. Being a semiconductor distributor, ACLS is in an advantageous position to benefit from the boom in the semiconductor business. Moreover, with the EV market expected to surge in 2024, Axcelis is set to reap the rewards of supplying EV brands with semiconductor chips.
UiPath Company (Road)
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Uipath company (New York Stock Exchange:road) offers a range of automation solutions that help companies automate their operations. Currently trading at $21.62, its stock has risen by 50.56% in the past 12 months. Analysts are bullish, with 16 analysts offering an average price target of $24.50, an increase of 13.3% from the current price.
In its most recent earnings release, UiPath reported $1.378 billion in ARR and $44 million in non-GAAP operating income, an increase of 24% and 244%, respectively, year-over-year. The company also achieved a gross profit margin of 84.39% last quarter, exceeding the industry average of 48.86%. Looking ahead, management expects non-GAAP operating income to reach $78 million, showing growth of 77% quarter-over-quarter. UiPath shows financial stability through its impressive financials.
Furthermore, the company applies AI-powered computer vision to its products and integrates generative AI into its platforms. Uipath recently launched “Project Wingman,” which enables customers to build automations using natural language prompts. It also released UiPath Autopilot, an AI-powered companion that simplifies everyday tasks, allowing users to be more productive. These new products will enhance UiPath's toolkit, helping it grow its competitive advantage.
On the date of publication, Michael Keough 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 author and are subject to InvestorPlace.com Publication guidelines.
Researchers contributing to this article do not hold (directly or indirectly) any positions in the securities mentioned in this article.
Michael Keough is a financial writer with extensive experience in the technology industry, whose work has appeared in Seeking Alpha, Benzinga, and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to select the best long-term sustainable investments.
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