Stock Hotlist: Top Picks to Watch Now

Picking the wrong stocks can decimate your portfolio.

They’re pure portfolio poison.  

But the right stocks…

If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

With over 4000 tickers to choose from, finding the right stock at the right time can prove to be nearly impossible… 

Unless you’re spending hours each day combing the markets and researching companies.  

That’s why we’ve done the legwork for you.  

We sort through thousands of stock ideas and whittle them down to a few top choices that are primed for solid price action in the coming days, weeks and months.  

This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future.

Click here for the full story on the stocks we’re watching this week… 

Sprout Social (SPT)

Sprout Social is a web-based social media management platform that made its market debut in late 2019. The company tapped into the rising trend of businesses shifting their marketing strategies towards social media platforms. Boasting a customer base of over 30,000 globally, Sprout Social’s revenue continues to climb both sequentially and year-over-year. However, the company faces a challenge with its expanding losses despite revenue growth. 

Notably, the recent acquisition of Tagger media for $140 million aims to bolster its reach within the influencer community. SPT stock has faced a decline of more than 17% in 2023 and over 23% in the past year. Despite these setbacks, investors with a patient, long-term perspective might consider this as a strategic entry point.

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FARO Technologies, Inc. (FARO)

It’s not uncommon for small tech companies to lose money for years before finding success.  However, it is why investors have been hesitant about three-dimensional measurement solutions developer Faro Technologies since it boosted investment sharply in the last year, with cash burn ramping by 64%.  That does raise some red flags, and there’s no solace in the operating revenue growth of 2.4% in the same time frame.  Clearly, however, the crucial factor is whether the company will grow its business going forward.  

FARO’s latest offering is its cloud-based information platform, Sphere. With Sphere, users are able to leverage artificial intelligence and machine learning to automate time-consuming and repetitive tasks.  Sphere enables faster 3D data capture, processing and project management for engineering and construction projects.  We expect this technology to grow and develop along with AI and don’t see the company’s extra spending as a deterrent.   

Its cash burn of $42 million is about 8.7% of its $478 million market cap. That’s a low proportion and stands out as evidence that the company is well on top of its spending.  Considering the potential for advancement for this micro-cap, the pros on Wall Street are beginning to take notice.  The five analysts offering recommendations for the stock say to Buy FARO, with none recommending to Sell.  A median 12-month price target of $26 represents a 53% increase from the current price.  

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Rocket Lab (RKLB) 

Small-cap space company, Rocket Lab distinguishes itself with its robust financial standing, a rarity among smaller players in the space industry. Recent earnings reflected a noteworthy 12% year-over-year increase in revenue, while the addition of a $40 million contract backlog further underscores the company’s growth trajectory and financial resilience.

The launch services specialist has reached a significant milestone by successfully reusing an engine from a previous flight in its August 23rd rocket launch. This achievement marks a decisive stride toward Rocket Lab’s goal of achieving complete booster reusability across multiple launches. This advancement not only promises to accelerate Rocket Lab’s launch cadence but also stands to considerably curtail manufacturing expenses.Concurrently, the company is tantalizingly close to achieving its post-launch barge landing target, a strategic move that holds the potential to streamline operations and bolster cost efficiency. The recent acquisition of Virgin Orbit’s dormant facility has propelled Rocket Lab even closer to realizing these aspirations, firmly establishing it as a space stock to consider adding to your portfolio.

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