The Next Trillion-Dollar Stars: 3 Stocks to Watch
The revised growth figures for the third quarter underscore the strong American economy. It records a rapid annualized growth rate of 5.2 percent, the highest since 2014. In stands in stark contrast to the lackluster performance in the U.K. and Europe. President Biden’s 2022 Inflation Reduction Act largely accounts for the current strength of the U.S. economy.
Specifically, the Act primarily consists of a $370 billion clean energy subsidy package over a decade. While intended to be fiscally contractionary over ten years, these subsidies have fueled a boom in high-tech industries. Also, they have played a key role in sustaining business investment growth.
The stock market has been growing significantly. Hence, these three stocks are the next trillion-dollar stocks that will explode in growth.
Geo Group (GEO)
Government service provider Geo Group (NASDAQ:GEO) specializes in design and support services for secure facilities and processing centers worldwide.
The stock is up 37.95% to $10.25 in the past year, placing it in an attractive position for investors. And, the global real estate market size was valued at $3.69 trillion in 2021, expected to grow at 5.2% CAGR from 2022 to 2030.
Revenue year over year (YOY) increased 5.32% to $2.38 billion, while net income grew 121.93% YOY to $177.81 million. EPS increased by 6.06% to $1.40. Additionally, free cash flow grew to $220.10 million, showing confidence and stability in the financials.
Geo Group’s current undervaluation from a 6.4x EBITDA compared to the sector’s average of 9.1x, positions it as an investment with deep value. The market is overlooking the company’s true potential. Now, investors can benefit from capital appreciation when the company’s intrinsic value becomes more widely recognized. Furthermore, the lower 15% short interest, in contrast to competitors with short interests ranging from 25 to 35%, indicates a more positive market sentiment. This reduced short interest not only lowers the risk of a short squeeze but also signals a potential for the stock to outperform in the long term.
Yahoo! Finance analysts label GEO as a buy. The real estate sector shows no signs of slowing down, and GEO is already ahead of the competition through robust financials and under-recognized value.
Predictmedix AI Inc. (PMEDF)
Predictmedix AI (OTCMKTS:PMEDF) is a rapid health screening provider. PMEDF uses multispectral cameras to analyze physiological data patterns and predict health issues like impairment by drugs.
PMEDF stock is up 66.67% year to date (YTD). The biotechnology market was valued at $368 Billion in 2021. And, it will grow to $1,334 billion by 2030 from a 15.5% CAGR.
Cash from operations YOY increased 65.14% to -$534,190, with free cash flow increasing to $167.13K. Clearly, it’s showing signs of recovering financials.
Recently, Predictmedix introduced its state-of-the-art Safe Entry Stations to delegates from 30 countries at the D-30 event in New Delhi, India. This event signifies a pivotal step forward in the global fight against drug addiction and the disabilities caused by drug abuse. Also, it symbolizes the collaboration of 30 nations recognized by the United Nations for their efforts to address drug addiction worldwide.
Yahoo Finance analysts rate PMED as a buy. Thus, this new event primes PMED for long-term growth potential.
Costco Wholesale (COST)
Costco Wholesale (NASDAQ:COST) is a global retailer with expanded operations in 8 countries with hundreds of locations. COST has grown 31.54% YTD.
Retail leader Costco, valued at $21.2 trillion in 2022, is forecast to grow to $41.3 trillion by 2030 from a 7.69% CAGR. Costco holds a 19% market share last quarter compared to competitors.
Financially, Costco performed exceptionally in Q3 of 2023, with $78.9 billion in revenue, growing 9.5% YOY. Also, net income and diluted EPS grew to $2.16 billion and $4.86, which beat industry projections for EPS and revenue by 1%.
The strongest growth catalyst comes from increased sales and revenue attributed to holiday shopping. With Costco’s large holiday deals and price cuts, customers are enticed to shop at Costco compared to other competitors. Hence, this stands as a contributing factor to Costco being projected as one of the highest holiday shopping earners. And high revenue will only improve COST stock, giving it an edge to being the next trillion-dollar star.
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.
