Future Market Kings: 3 Stocks That Will Shape the Next Decade of Growth (2024)

Three companies emerge as trailblazers in the finance and tech sectors, shaping their industries and the future. These companies stand at the edge and may influence the next decade of growth. These players are orchestrating the wave of change through innovative strategies and sharp performances.

The first one has delivered solidity in revenue growth and market diversification. With its expanding addressable market and a strategic focus on advancements, the company is capturing demand across various sectors. Similarly, the second one has delivered rapid growth, particularly in attaining considerable increases in the bottom line. The company balances seizing market demand and maintaining its operational edge.

Finally, the third has solid revenue growth and diversification in the semiconductor equipment market. With a diversified top-line and a progressive customer base, the company holds solid ground in business strategies and market penetration. Read more to learn about these companies’ fundamentals, growth trajectories, strategic moves and potential to yield high returns.

Palantir (PLTR)

Palantir (NYSE:PLTR) has delivered performance and potential for rapid valuation growth through solid revenue growth and diversification-focused strategies. The company ended 2023 with$608 millionin revenue in Q4. This is marked by a considerable 20% year-over-year (YoY) and 9% sequential growth. This consistent growth trajectory indicates the company’s fundamental capability to capture market share.

Furthermore, Palantir’s fundamental capability to expand its addressable market and penetrate new sectors has been a core driver of its revenue growth. The expanding addressable market, driven by moves such as the AI-powered platform (AIP), has propelled the company’s growth momentum. By leading into new markets and leveraging its advanced tech (analytics) capabilities, Palantir may continue to capture demand and derive revenue growth across different verticals.

Additionally, Palantir’s commercial business segment has contributed considerably to its consolidated top-line and related diversification. The milestone achievement of surpassing$1 billionin revenue over the last 12 months underscores the success of its commercial offerings and the increasing demand for its solutions. The Q4 commercial revenue growth of 32% YoY highlights the segment’s progressive performance and importance in Palantir’s growth strategy.

Moreover, Palantir’s US commercial segment has experienced exceptional growth, with Q4 revenue soaring by70% YoY. This acceleration in US commercial business is driven by expanding demand, rapid customer acquisitions and the robustness of moves like AIP bootcamps.

Finally, AIP bootcamps have emerged as a potent strategy for customer acquisition and expansion in the US commercial segment. These bootcamps serve as a platform for showcasing Palantir’s capabilities to support compressed sales cycles and accelerate new customer acquisitions. Recent developments, such as the American cable television provider signing a nearly $3 million deal following a bootcamp, highlight the robustness of this strategy.

Block (SQ)

Block (NYSE:SQ) delivered solid growth and efficiency in 2023, laying a solid foundation for future expansion. The company’s performance highlights its capability to capitalize on market demand while enhancing operational robustness. For instance, Block achieved$7.5 billionin gross profit for 2023, marking a considerable 25% YoY increase. Similarly, adjusted EBITDA soared by 81% YoY to $1.79 billion, with a high 24% margin on gross profit. Adjusted operating income hit $351 million, compared to a loss of $145 million in the previous year.

Additionally, adjusted free cash flow for 2023 surged to$515 million, a considerable improvement from the negative $346 million in the prior year. Fundamentally, Block’s impressive growth in gross profit reflects its fundamental capability to monetize its offerings rapidly. The considerably increased adjusted EBITDA and operating income underscores the company’s improved profitability and operational efficiency. Thus, positive cash flow generation indicates solidity and sustainability.

In detail, Square and Cash App achieved positive gross profit retention across their annual cohorts in 2023, delivering the value proposition of their offerings. Specifically, in Q4, Square witnessed a 22% YoY increase in gross profit, with adjusted EBITDA and operating income surpassing guidance. Square App generated $828 million in gross profit in the fourth quarter, with continued growth in banking products and vertical point-of-sale solutions.

Similarly, solid growth in online volumesoffset declinesin manual keyed entry (MKE) volume, reflecting evolving consumer payment preferences. Square delivered discipline in discretionary spending, contributing to higher-than-expected adjusted EBITDA and operating income in Q4.

Overall, Block achieved Rule 29 in 2023 on a combined company basis, surpassing its guidance. This mess is a core indicator of the company’s fundamental capability to balance growth with profitability, laying the groundwork for continued expansion.

ACM Research (ACMR)

ACM Research (NASDAQ:ACMR) has solid revenue growth and diversification based on its progressive market lead and business strategies. The company’s performance, particularly its revenue momentum, is a core indicator of its potential for valuation expansion. For instance, ACM Research attained considerable revenue growth in Q4 2023, with revenue hitting$170 million, a boost of 57% YoY. This high growth reflects the company’s fundamental capability to capture market share and capitalize on industry trends.

Moreover, for 2023, ACM Research reported revenue of $558 million, representing a considerable growth rate of 43% YoY. This constant revenue growth over the year suggests the solidity of ACMR’s business model and the demand for its offerings in the semiconductor equipment market.

Additionally, revenue from electrochemical plating (ECP) furnaces and other technologies grew by33%in 2023, hitting $32.1 million and contributing 19% to total revenue. The advanced packaging segment, excluding ECP services and spares, also delivered considerable growth, generating $15.9 million in revenue, up by 15.8% year over year. Hence, this diversified top-line minimizes the risks associated with dependency on a single product or market segment.

Furthermore, in 2023, the company hadthree major customers, SMIC, SiEn and CXMT, each contributing considerably to its sales. SMIC, as the top customer, represents 18% of ACM Research’s sales, followed by SiEn at 15% and CXMT at 13%. Additionally, ACM Research derived a progressive contribution from second and third-tier semiconductor manufacturers, representing about 30% of its annual sales.

Overall, this diversified customer base reflects ACM Research’s fundamental capability to capture a broad range of customers across different semiconductor industry segments.

As of this writing, Yiannis Zourmpanos held long positions in PLTR and ACMR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.