For 18 months, rising interest rates were aimed at cooling the U.S. economy and curbing inflation. The economy unexpectedly expanded at an annualized rate of 4.9% in the third quarter. This certainly defied gloomy economist predictions. This unexpected surge was propelled by robust consumer spending and a healthier labor market. This, in turn, creates a sense of financial security among consumers. Further, strong stock performance, high housing prices, and pandemic-related savings have contributed to this confidence.
However, economists remain uncertain about the sustainability of this momentum. The impact of the Fed’s interest rate hikes and increasing borrowing costs are becoming more pronounced. As a result, retail stocks are poised to expand. And, innovative business solutions will prove to be long-term winners in growth.
SeaStar Medical Holding Corporation (ICU)
SeaStar Medical Holding Corporation (NASDAQ:ICU) is a medical device company. It develops platform therapy to reduce hyperinflammation on vital human organs. With the stock growing 142.86% in the past month, ICU is cheaply valued at $1.02 per share. Yahoo! Finance reports two analysts having a buy rating, with companies such as Maxim Group initiating a buy rating.
In Q2 of 2023, profit indicators such as net income were reported to be a -$3.67 million, growing by over a million from March 2023’s net income value of -$5.26 million. In addition, June 2023 operating income was reported to be -$3.75 million, as compared to March 2023’s operating income of -$4.58 million.
The FDA recently granted SeaStar Medical a breakthrough device designation. The Selective Cytopheretic device is for hepatorenal syndrome. It became a pivotal growth catalyst.
Further, this designation attracts attention from healthcare providers, insurers, and investors. Also, it can lead to fostering strategic partnerships and facilitating more reimbursement agreements as seen in its SEC agreement filings. ICU has surged by nearly 500% over the past months, reflecting the sheer optimism surrounding its long-term prospects.
In short, ICU is a stock investors should not miss out on.
Grab Holdings (GRAB)
Singapore-based software company Grab Holdings (NASDAQ:GRAB) offers various applications ranging from payment solutions to food delivery through its leading super app. GRAB is down 12.43% year to date (YTD) at $3.03 per share. Wall Street Journal analysts give GRAB 21 buy ratings and forecast a median price target of $4.60, ranging from $3.10 to $7.00.
The U.S. online food delivery market is projected to grow at a CAGR of 15.10%, from $269.80 billion in 2023 to $473.50 billion in 2027. It shows no signs of slowing down as consumers enjoy discretionary spending.
In Q2 2023, the company reported solid financials, with a revenue of $525 million in Q1 to a 77% increase year over year (YOY) to $567 million in Q2. The total gross merchandising value (GMV) grew 4% YOY due to growth in mobility and delivery services. Also, GRAB reports a healthy cash flow of $40 million and an 80.08% YoY increase in EPS to -0.02.
GRAB operates across various sectors such as deliveries, mobility services, and digital financial services. Consumers can use its super app to order food, catch a ride, pay and invest, and even book hotel stays. Further, the company opened up a new program named Grab for Business. This program enables businesses to manage transport needs, on-demand delivery, and even create ads on its app, managing daily business tasks.
Global Self Storage Incorporated (SELF)
Global Self Storage Incorporated (NASDAQ:SELF) is a Real Estate Investment Trust (REIT) that focuses on high-quality tenants in select markets. They manage 13 self-storage properties nationally. Despite stock being down 9.90% YTD, SELF is cheaply priced at $4.46 per share. Analysts have maintained their buy ratings, with companies reiterating long-term buy consensus.
SELF’s strong financials are evident in recent quarterly performances ending June 2023. Indicators of profit stem from revenue of $3.09 million grew 3.6% YOY and net income of $578.07 thousand grew 43.02% YOY. Additionally, net profit margin of 18.73% increased by 38.03% YOY and diluted EPS of $0.05 grew 25% YOY.
Successfully integrating its properties into a larger company portfolio gives opportunities for cost-saving and efficiency in operations. Additionally, in the absence of an acquisition, SELF will have $24.5 million in liquidity. That can be used for one to two new property purchases once interest rates become more favorable.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
