Uncovering cheap stocks might result in large profits in a changing market. These three businesses have tremendous development potential and are all trading for less than $15 per share.
The first deliberately shifts its focus to the connected home arena. The company uses its knowledge of temperature control and home automation to win over a sizable number of customers and gain market share. Meanwhile, the second augments its development potential using tactical investments in private credit and equity. This is combined with a robust focus on customized separate accounts that provide growth and stability.
Finally, the third one is reaping the benefits of growing its fleet and attractive charter rates, as seen by rising shipping income and efficient cost control. These businesses are appealing choices in the under-$15 stock category because they present investors with the possibility of large profits through their strategic efforts and market placement.
Explore their plans in detail, as well as their financial results and market prognosis. This may provide a thorough appraisal of their potency.
Universal Electronics (UEIC)
The rapidly expanding connected home sector has been the focus and source of resources for Universal Electronics (NASDAQ:UEIC). Reallocating sales and product development resources to industries with more growth potential, such as temperature control and home automation, is part of this strategic shift.
Moreover, six of the world’s top ten heating, ventilation, and air conditioning (HVAC) original equipment manufacturers (OEMs) have granted the business new product designs, and two more are now in the works. Specifically, 13 of Europe’s top 14 HVAC OEM brands are working with Universal Electronics, holding more than 80% of the market.
Additionally, leading U.S. and European brands expressed great interest in the new products that Universal Electronics revealed at the Consumer Electronics Show in January, including the UEI-TIDE line. For instance, North America’s top multi-dwelling unit installer placed the first orders for the TIDE-Dial and TIDE-Touch thermostats. Universal Electronics has won three active design awards with two of the top three European HVAC OEMs. It demonstrates a strong market presence.
Overall, due to the lengthy lead times in the HVAC sector, new product shipments may begin in 2025. This may spur top-line growth.
GCM Grosvenor (GCMG)
Strategic investments have been undertaken by GCM Grosvenor (NASDAQ:GCMG) to broaden its offering and diversify its investing approaches. In Q1 2024, 73% of the company’s assets were under management, and a comparable amount of its funding came from customized separate accounts. Indeed, this approach offers substantial growth, financial outcomes, consistency, and predictability. The longest-lasting nature of these partnerships—averaging 15 years for the biggest clients—guarantees a consistent stream of re-ups and further investments.
Additionally, in Q1, GCM Grosvenor secured $400 million in private credit and close to $500 million in private equity. Its focus on private credit shows the company’s strategic objective to expand this segment substantially. This includes adding two team members to strengthen direct credit investing capabilities. Thus, this plan further strengthens its capacity to draw sizable commitments to credit co-investment funds.
Moreover, the business is well-positioned for future performance fee revenues. This is due to its success in absolute return strategies and the expectation of more completed transactions and carry distributions. Lastly, with 140 projects totaling $779 million in gross unrealized carried interest, GCM Grosvenor may have substantial profit potential, especially when mergers and acquisitions and capital markets strengthen.
DHT Holdings (DHT)
DHT Holdings (NYSE:DHT) reported shipping sales of $145.9 million for Q1 2024, up from $131.5 million for Q1 2023. Higher time charter rates, fewer off-hire days, and more revenue days from fleet expansion were the main drivers of this rise. These revenue improvements demonstrate the company’s concentration on fleet utilization and obtaining attractive charter rates.
Additionally, due primarily to higher bunker costs, voyage expenditures for Q1 climbed to $39.5 million from $37.6 million in 2023. Despite this rise, the company’s capacity to minimize port and voyage-related expenditures substantially mitigates the impact on the bottom line.
Moreover, the spending on vessel operations was $19.2 million in Q1. This is slightly more than the $18.4 million recorded during Q1 2023, demonstrating efficient management over indirect expenses. DHT Holdings has continuously outperformed rivals and market indices in the spot market.
Finally, the firm has routinely outperformed the TD3c index. This measures the major Very Large Crude Carriers trade route from Saudi Arabia to China in spot market earnings over the past 12 months. Therefore, superior trading methods and operational edge reflect the $15K daily average profit difference between the boats of DHT Holdings and the index.
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.
