IBTA - Fresh on the Market: 3 Newly Listed Stocks Poised to Skyrocket

2024-05-15 06:30:00 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Among the thousands of listed stocks, a few dozen grab the majority of the attention. A deeper scanning of sectors helps investors find under-the-radar stocks that can be potential multibagger stories.

Another way of screening for under-the-radar stocks is to look at newly listed stocks to buy. Even among IPOs, few stories remain ignored. However, the business holds long term growth potential. These stocks can skyrocket in quick time once they get the attention the story deserves.

Notably, the U.S. IPO market has witnessed strong activity in Q1 of 2024. During the quarter, companies have raised $8.7 billion as compared to $2.6 billion in Q1 of 2023. The focus sectors have been healthcare and technology. Therefore, a few interesting ideas can deliver multibagger returns.

Let’s discuss three newly listed stocks that look attractive for the near and long term.

ZEEKR Intelligent Technology (ZK)

ZEEKR Intelligent Technology (NYSE: ZK ) is among the most attractive IPOs in the recent past. It is a holding company engaged in the production and sale of electric vehicles ( EV s) and batteries.

With the EV industry facing headwinds, it’s a good time to accumulate quality stocks. The company’s current portfolio includes ZEEKR 001, ZEEKR 001 FR, ZEEKR 009, ZEEKR X, and an upscale sedan model. As of December 2023, the company had delivered 196,633 ZEEKR vehicles since its first delivery in October 2021. Clearly, ZEEKR has made rapid strides in the last 30 months.

For 2023, ZEEKR reported revenue of $4.8 billion with a gross profit margin of 15%. The recent introduction of the upscale sedan model will likely boost deliveries growth and revenue.

Further, with significant investment in technology, ZEEKR has an edge. For the last financial year, the company invested 6% of revenue in R&D. Overall, ZEEKR looks promising and as margin expands coupled with revenue growth, expect the stock to surge from current levels.

Loar Holdings (LOAR)

Loar Holdings (NYSE: LOAR ) stock listed at $28 last month. However, the stock trended sharply higher to current levels of $47.15. I would look at some intermediate correction for accumulating the stock.

LOAR designs and manufactures niche aerospace and defense components. The company’s differentiating factor is highly engineered solutions with high-intellectual property content. To put things into perspective, Loar Holdings derived 85% of its 2023 net sales from proprietary products.

Importantly, the company’s products have a significant aftermarket exposure. This has translated into steady growth in recurring revenue. In 2023, 52% of the company’s net sales came from aftermarket products. With the defense industry growing at a healthy pace, Loar Holdings stands to benefit.

With the company involved in the manufacture of high-intellectual property content, EBITDA margin has been robust. For 2023, LOAR reported adjusted EBITDA margin of 35.5%. With operating leverage, I expect margin to remain firm coupled with upside in cash flows.

Ibotta (IBTA)

Another interesting IPO in the recent past deserves attention and a place in the portfolio. Ibotta (NYSE: IBTA ) is a provider of “Ibotta Performance Network.” The platform is being used by consumer-packaged goods ( CPG ) brands to deliver digital promotions to consumers.

For 2023, Ibotta reported revenue growth of 52% year-over-year ( YOY ) to $320 million. For the same period, the company reported an adjusted EBITDA margin of 26%.

Notably, Ibotta’s customers include some of the biggest CPG brands like Walmart (NYSE: WMT ), PepsiCo (NASDAQ: PEP ) and Nestle (OTCMKTS: NSRGY ). Overall, the company has more than 850 clients. Further, Ibotta believes that the total addressable market for its solutions is $200 billion. This provides ample headroom for growth in the coming years.

Also, Ibotta ensures its platform remains technologically. The company is already providing AI-driven solutions that help clients gain better understanding of the right offers to consumers. Overall, Ibotta is on a high-growth trajectory. Therefore, I expect IBTA stock to trend higher with the company already getting coverage from multiple analysts.

On the date of publication, Faisal Humayun 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.

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