The first month of the New Year has ended, and the market continues to be unpredictable due to the volatility in the Chinese stock market. Despite this, analysts remain optimistic about the performance of a number of companies by the end of the year. While well-established companies are expected to survive the turmoil in the market, there are a number of little-known stocks that are expected to perform well this year.
The following is a list of 10 upcoming stocks you probably never heard of before that might do well.
HMS Holding
HMS Holding is an Irving, Texas-based company offering cost containment services to healthcare customers and sponsors. The company essentially makes money by saving billions of dollars for Medicare and similar programs each year. These savings mainly come from fraudulent and erroneous payments. The company is expected to perform well this year, according to Forbes. The value of the stocks of the company increased by 21 percent after analysts from Forbes picked it last year. Performance fees make up two-thirds of the revenues of the company while service contracts make up the remaining third. The company currently has no direct competitor in the market. The value of the stocks of HMS Holding is expected to go up to $44 this year based on a growth rate of 25%, Forbes added.
Zillow Group
The Zillow Group is a company operating an online database of real estate information. The company was established by former Microsoft executives Lloyd Frank and Rich Barton in 2006. Following its merge with Trulia, an online real estate website, it dominated the market for real estate advertising. Investopedia.com revealed that the company currently holds 30 percent of all real estate traffic through computers and mobile devices. Forbes predicts the stock value of the company to reach $35 this year once its merge with Trulia is finalized.
Emergent Biosolutions
The third company on the list is Emergent Biosolutions. This multinational biopharmaceutical company develops vaccines for infectious diseases and offers medical devices designed for bio-defense. The most notable product of the company is Bio Anthrax, which is the only anthrax vaccine to receive a US Food and Drug Administration license. A 369-page report issued by the Department of Health and Human Services in September 2011 recommended the stockpiling of anthrax vaccine before any major crisis happens. The target price for the stocks of the company for 2016 is at $27, according to Forbes.
IPG Photonics
IPG Photonics is based in Oxford, Massachusetts and is a dominant player in the industrial fiber-optic laser market. Demand for fiber-lasers in a number of industries is expected to grow due to its accuracy, speed and energy-efficiency when used in cutting and welding electronics, vehicle and airplane components. The cost structure of the company is also the lowest in the industry since it manufactures its own laser diodes. The cost per wattage of IPG Photonics is at $5. Forbes is expecting the shares of the company to reach $70 this year.
iRobot Corp
Forbes included iRobot Corp on its list of Best Small Companies last year. The company manufactures the Scooba floor scrubbers, PackBot bomb sniffers and Roomba vacuum cleaners. Sixty percent of the revenue of the company comes from home robot sales while the remaining 40 percent are from military robot sales. International sales of home robots have yet to be taken into account even as the gross margins of the company are expected to increase. Share prices of the company should go up to $43 this year, according to analysts from Forbes.
Ancestry.com
This Provo, Utah-based company is the world’s biggest profit-for-genealogy company and has over one million subscribers around the world. Since many subscribers opt to discontinue their subscription with Ancestry.com, the company increased the information stored on its website to increase its appeal in the market. Forbes said the earnings of the company have gone up by 30 percent, but it is expected to go down to around 8 percent. Analysts from Forbes expect the value of the stocks of the company to reach $35 in 2016.
Radware Limited
Radware Limited is a developer and manufacturer of security solutions and application delivery for business networks. The network infrastructure for the security products of the company forms the foundation of its success in the market. Analysts surveyed by the Financial Times revealed that the company is expected to outperform in the market. The Financial Times added that an earlier consensus among investment analysts advised investors to buy shares of the company. The shares of the company are expected to go up to $19 this year, according to investopdia.com.
Interactive Intelligence Group
Interactive Intelligence Group develops business communications software designed for the management of customer service calls, email marketing campaigns and tech support emails. The demand for the products of the company is expected to increase as corporations move towards the use of phone systems using the internet, according to Forbes. The Financial Times indicated that analysts expect the earnings of the company to grow by around 15 percent in the next five years. The company also has $90 million in cash that can be used for acquisitions. Forbes expects the shares of the company to go up to at least $40 in 2016.
Hawkins
Hawkins Inc. is a manufacturer and distributor of specialty chemicals. Around 75 percent of the sales of the company come from industrial chemicals while its water-treatment segment accounts for the remaining percentage, according to Forbes. The water-treatment segment offers more profit for the company at 29 percent compared to 17 percent for its industrial segment. The share prices of the company are expected to reach $45 this year, Forbes added.
Exlservice Holdings
The last company on the list provides a range of services to other companies, including customer support, accounting services, loans servicing and collections. Sales growth of the core operations of the company reached 28 percent, which is higher than its competitors in the market, according to Forbes. The company increased its customer base after it acquired OPI. A poll conducted by the Financial Times among investment analysts showed the company is expected to outperform in the market. Forbes also revealed the share prices of the company are expected to reach $31 this year.
Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose.Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).
Speak Your Mind