Finding high-growth investment opportunities in the middle of volatile markets is like finding gold. These days, three exceptional businesses have surfaced, all displaying eye-catching numbers and bright futures that attract the attention of astute investors throughout the globe. To begin with, the first one stands out due to its incredible financial boost. With an impressive yearly increase and quarterly boost in adjusted EBITDA, the business demonstrates solid cost control and operational efficiency.
Moreover, the second one is very noticeable in the field of online shopping. The company’s marketplace shows a rising interaction and transactional value ecosystem, with a noteworthy growth in gross merchandise value (GMV) that third-party (3P) sellers mainly drive. This emerging market highlights the company’s flexibility and scalability in the digital sphere and offers steady development prospects.
Finally, the third one stands out as a shining example of growth and financial stability. Supported by a solid increase in EPS and a discernible improvement in operating margins, the firm exhibits improved profitability and efficient cost control.
Nextracker (NXT)
The revenue of Nextracker (NASDAQ:NXT) has uplifted massively on a quarterly and year-over-year (YoY) basis. The company’s sales for the fiscal 2024 were $2.5 billion, a solid boost of more than 30% YoY. The solid growth is further demonstrated by the Q4 revenue of $737 million, a 42% YoY increase. With that, Nextracker may continue to hit growth because of its steady revenue growth over the last quarter and fiscal year. This is the result of solid market demand and a progressive business strategy.
Moreover, at $521 million, Nextracker’s adjusted EBITDA has more than doubled YoY—a remarkable 150% increase YoY. Adjusted EBITDA increased 120% YoY to $160 million in Q4 alone. Even without the IRA 45X tax credit benefits, this reflects excellent cost control and operational success.
Additionally, Nextracker has had tremendous success abroad. Its Q4 income from overseas sales reached $242 million, an over 90% YoY increase. In addition, the business revealed a record backlog of over $4 billion, up more than 50% YoY and tripling over the preceding two years. Overall, based on completed contracts and purchase orders, this increasing backlog indicates solid future demand and improves revenue visibility, enabling long-term growth.
GigaCloud (GCT)
The GMV marketplace operated by GigaCloud (NASDAQ:GCT) had a high 64% YoY boost, rising from $553.5 million to $908 million for the 12 months ended March 2024 (Q1 2024). This increase in GMV highlights the platform’s growing efficiency and scale for GigaCloud. Even more significantly, the GMV from third-party (3P) vendors increased, rising from $285 million to $490 million in the previous year’s period, a 71.8% increase.
Moreover, the percentage of GMV attributed to 3P sellers has increased from 51.5% to 54%, indicating these sellers’ growing significance and input to GigaCloud’s marketplace. In short, the growth reflects an expanding marketplace ecosystem with increased engagement and transaction values.
Additionally, sales increased 43.7% YoY from 602 to 865 active 3P vendors in Q1 2024. At the same time, there were 5,493 active purchasers, up from 4,255, a 29.1% YoY increase. Notably, the average spend per active buyer increased by 27%, from $130K to $165K. Therefore, these indicators suggest that the GigaCloud marketplace ecosystem is robust and expanding, with consumers and providers exhibiting increasing transaction values and increased involvement.
Celestica (CLS)
Celestica (NYSE:CLS) derives a healthy profit as Q1 2024’s adjusted EPS increased to $0.86 from $0.47 in Q1 2023. This astounding 83% growth suggests increased profitability and efficient cost control. The non-IFRS operating margin for Celestica increased from 5.2% in Q1 2023 to 6.2% in Q1 2024. This 1% increase was fueled by an uplifted bottom line in the Advanced Technology Solutions (ATS) and Communications and Enterprise Solutions (CCS) divisions. This is the first time the quarterly non-IFRS operating margin has surpassed 6%.
Additionally, revenue for the CCS segment increased from $1.04 billion to $1.44 billion, a 38% increase YoY. Currently, this market sector derives 65% of the company’s consolidated top-line. Moreover, the sector margin increased by 1.2%, from 5.8% to 7%. Notably, the solid demand from hyperscale clients, especially AI computing solutions, drives growth. Revenues for the ATS segment decreased by 3% YoY to $768 million, but the segment margin rose by 0.3% to 4.7%, demonstrating effective operations despite a challenging market.
Finally, declines in industrial demand were countered by growth in the aerospace and defense (A&D) sector and a stable capital equipment business.
On the date of publication, Yiannis Zourmpanos 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.
