Finding possibilities with high growth potential is crucial in the fast-paced world of investments. Three stocks to buy, in particular, stand out as possible game-changers in the tech sector. These companies have proven their strategic insight and perseverance in facing difficulties and market swings, making them appealing investments.
The first has sharpened its emphasis on the business market. The company demonstrated a will to succeed despite a consistent drop in revenue. In the meantime, the second company has cemented its standing with a noteworthy boost in new business and an outstanding customer retention rate. The business is utilizing upselling and cross-selling possibilities and efficiently interacting with its current clientele.
Ultimately, the third company has proven to be another promising contender, with significant order increases and efficient backlog management. Daktronics is adept at meeting client demand across various industry sectors, showcasing its adaptability in responding to evolving market conditions and seizing new opportunities.
These companies leverage innovation, robust client relationships, and strategic planning to drive growth, demonstrating their ability to survive and thrive in challenging environments.
Stocks to Buy: Airgain (AIRG)
Airgain (NASDAQ:AIRG) secured multimillion-dollar prospects and introduced new products in 2023, making considerable progress in its enterprising business. According to the sales split for Q4 2023, the enterprising market brought in $4.6 million, or 45.5% of the total sales for the quarter.
Additionally, despite the consecutive drop, Airgain is still upbeat about the prospects of the enterprise market. Access point antennas, specialized solutions, and integrated cellular modems are the main items driving this market. Notably, Airgain is positioned for development in this sector thanks to the launch of innovative products like the Lighthouse Smart Repeater platform and the Lantern Fixed Wireless Access Solution. Hence, collaborative engineering efforts and relationships with important customers further increase the company’s competitiveness.
Although the enterprise segment had difficulties in 2023 due to issues including a continuous inventory overhang and a reduction in bespoke items, Airgain expects a modest rebound in H1 2024. There are reasons for optimism, including growing end-user demand for integrated modems and new sales prospects. To sum up, positive momentum is also indicated by the continuous ramp-up in IoT antenna shipments and the possible expansion of the Asset Tracker business.
Unisys (UIS)
At Unisys (NYSE:UIS), agreement renewal rates above $1 million in total contract value (TCV) have reached 96%. This demonstrates the company’s strong client loyalty. Additionally, the company’s new business, TCV, has increased by 18% since 2022.
Notably, expansions with current clients were the main driver of the boost in new business TCV for both Q4 and 2023. Indeed, strong growth in new business and high client retention rates demonstrate Unisys’ capacity to nurture current connections and develop clientele. This shows how well the business engages customers, how good its solutions are, and how well it can take advantage of upselling and cross-selling opportunities.
Moreover, Unisys has shown growth in its adjusted EBITDA margin, which stands at 14.2%, and the non-GAAP operating margin, which reached 7% in 2023. The timing of software license renewals has resulted in a drop in gross profit margin. Nevertheless, the company has demonstrated resilience by growing its gross margin in areas other than licensing and support. Thus, enhancing margins is essential to maintaining profitability and funding expansion plans.
Overall, Unisys’s capacity to increase its operating margin indicates efficient cost control techniques and advances in operational edge.
Daktronics (DAKT)
In Q3 fiscal 2024, Daktronics (NASDAQ:DAKT) saw strong order growth, with orders rising by 29.4% over the same time in the previous fiscal year. Additionally, the company has a year-to-date order increase of 6.6%, indicating stable demand in its serviced addressable markets (SAM). The boost in orders illustrates Daktronics’ competitiveness and customer satisfaction. This demonstrates its capacity to meet demand across a range of market areas.
Furthermore, efficient backlog management is key to Daktronics’ order growth. Despite the boost in orders, the backlog shrank compared to the prior year’s levels. The product order backlog, for instance, was $328.3 million in Q3 2024, as opposed to $400.7 million in Q4 2023 and $429.1 million in Q3 2023.
Moreover, orders from the Spectacular and Out-of-Home sectors increased for the Commercial business unit. This suggests the economy is improving, and marketing and advertising expenditures have been reinvested. Thus, ensuring timely product delivery and preserving customer satisfaction depends heavily on effective backlog management. Overall, the decrease in backlog levels implies that Daktronics successfully handled production lead times and order fulfillment to satisfy client demand.
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.