In this new year, investors seek lucrative opportunities to grow their portfolios. In 2024, three high-potential stocks promise to turn a $10,000 investment into $20,000.
The first one’s lead into stablecoins, particularly a regulated one, suggests a focus on diversifying and securing digital transactions. The platform’s prowess in handling billions for large enterprises further solidifies its significance in facilitating massive transaction volumes.
Meanwhile, the second one has robust performance, marked by strategic initiatives and diversified revenue streams. This positions the company as a key player in 5G patent portfolios. Additionally, the third one stands out with its technological leadership in power devices. With industry alignment and a solid financial foundation, this one is moving on edge.
The article delves into the intricacies of these high-potential stocks. It explores these companies’ innovations, market strategies, and indicators that could pave the way for substantial returns in 2024.
PayPal’s (NASDAQ:PYPL) lead into stablecoins can be observed in the launch of the first regulated stablecoin, PYUSD. This strategic move aligns with the expanding potential of digital currencies. Also, Paypal’s strength in processing over $450 billion in volume for large enterprises in the last 12 months demonstrates the platform’s significance in facilitating massive volumes of transactions.
Additionally, the introduction of the regulated stablecoin represents PayPal’s focus on providing users with more diverse and secure instruments. Stablecoins are pegged to a stable asset like the US dollar. They offer users a level of stability not inherent in most of the volatile cryptocurrencies. This move taps into the growing interest in stablecoins and positions PayPal to integrate traditional stability with digital currencies.
Fundamentally, security and a seamless user experience are the most fundamental aspects of the financial services industry. PayPal’s focus on these aspects is evident in introducing passkeys to over 10 million consumers. This reduces friction in the sign-in experience. This enhances user convenience and contributes to the platform’s overall security by offering a more user-friendly yet secure authentication method.
Further, providing fraud alerts for all cards in the PayPal Wallet is another aspect of ensuring user safety. By actively notifying users of potential fraudulent activities, PayPal adopted a proactive approach to security, building trust among its user base.
On the other hand, small businesses form a vital part of PayPal’s ecosystem. The approximately 35 million merchant accounts strengthen PayPal’s vast merchant network, scale, and reach. The introduction of the PayPal Complete Payments solution further solidifies PayPal’s focus on small businesses. Finally, there is an 80% decrease in item not received disputes, which suggests the practical impact of this solution on improving transaction processes for merchants.
InterDigital (NASDAQ:IDCC) has demonstrated robust performance, marked by key financial indicators and strategic initiatives. In Q3 2023, InterDigital achieved revenue with 22% year-over-year growth. This strong topline performance indicates the effectiveness of the company’s strategy and related execution.
In smartphone licensing, revenue saw a noteworthy increase of 19% year-over-year, underscoring the company’s strength in this crucial segment. Also, InterDigital experienced a remarkable 30% year-over-year growth in revenue from Consumer Electronics ( ) and Internet of Things (IoT) licensing, emphasizing its diversified and expanding revenue streams.
InterDigital’s signing of two new license agreements also signifies the company’s ability to expand its recurring revenue base. The deals contribute to the ongoing growth of smartphone licensing and CE and IoT licensing programs.
The first is the multi-year royalty-bearing license agreement with Lenovo, covering High-Efficiency Video Coding (HEVC) video compression technology, resulting in a catch-up payment and resolving related litigation. This highlights InterDigital’s success in settling disputes and advancing its licensing programs. The second one is a licensing agreement with Humax for set-top boxes that add validation to InterDigital’s video portfolio. Therefore, this positions it as a key player in video-related technologies.
Fundamentally, InterDigital’s leadership in 5G patent portfolios, according to a third-party report (LexisNexis), positions the company among the top five in the world. This recognition enhances InterDigital’s negotiating power and supports its value proposition in licensing discussions.
Finally, the company’s attainment of +30K granted patents and pending applications, coupled with record-setting invention findings, emphasizes the strength and depth of InterDigital’s innovation pipeline. Hence, these fundamentals may lead to a boost in market valuation in 2024.
Axcelis‘ (NASDAQ:ACLS) strength in the power device segment, especially silicon carbide, represents the relevance of its product portfolio in the market. For instance, there is an expectation that over 60% of system revenue in 2023 will come from power, with around 35% from silicon carbide applications. This topline segregation demonstrates the company’s alignment with industry trends and emerging technology.
In detail, the Purion Power Series product portfolio is a crucial element in the market and encompasses the Purion H200 and Purion XE silicon carbide systems. Axcelis’ status as the only ion implantation company capable of providing complete recipe coverage for all power device applications establishes it as a technological leader and the preferred supplier. Also, evaluations of three Purion H200 silicon carbide systems are underway with customers in multiple geographies.
Furthermore, Axcelis maintains a robust backlog at $1.2 billion (Q3 2023), providing significant insight into the company’s future revenue visibility. The quarterly system bookings increased slightly to $198 million, resulting in a book-to-bill ratio of 0.83. While a book-to-bill ratio under one might raise concerns, increased shipments in Q3 remain a stronghold.
The balance sheet shows Axcelis ended Q3 with $461 million of cash and short-term investments. The company generated $24 million in cash from operations during the period. Also, under the share repurchase program, $12.5 million of stock was repurchased in the quarter, with over $170 million of cash being returned to shareholders since 2019.
Finally, the infrastructure investments and the expectation of further ramping operations in Beverly and Korean centers suggest a strategic approach to managing capacity needs. Therefore, this aligns with the company’s comfort in having initiatives to support the $1.3 billion revenue model and market valuation.
As of the time of this writing, Yiannis Zourmpanos held a long position in PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.