PCG - 2 Stocks That Are Soaring on Surging Demand for These Companies' Products
The stocks of companies that are experiencing demand for their products and services exceeding supply can make great investments. Economics 101 tells us that such businesses have strong pricing power. Of course, investors need to dig deeper to determine if it looks like the rising demand is sustainable. Moreover, investors will want to know if such a company has a financially responsible plan to ramp up production fast enough to better meet demand before losing too many customers or potential customers.
Two companies that have recently reported that they can't keep up with demand for at least one of their main products and/or services, are increasing capacity, and have said the notable boost in recent demand should continue for many years are photomask maker Photronics (NASDAQ: PLAB) and backup power specialist Generac Holdings (NYSE: GNRC).
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