Three unique yet interesting investing prospects have surfaced. These businesses operate in the energy, semiconductor, and application software industries and may yield considerable returns in the upcoming years.
The first has seen a solid increase in production-related sales volumes, supported by wise capital expenditures and acquisitions. The company’s growth trajectory has established it as a significant participant in the oil industry, especially in the abundant Permian Basin.
Meanwhile, the second focuses on products for developing markets, like 5G and Artificial Intelligence of Things (AIoT). The company has established a place for itself in the semiconductor sector. With continuous R&D expenditures, the business can benefit from the growing market for cutting-edge semiconductor products.
Finally, the third one is at the vanguard of the application software market, revolutionizing identity verification and fraud management with cutting-edge AI-powered technology. In the face of a quickly changing digital world, the firm exhibits resilience and forward-thinking, with a predicted rise in revenue from core products. Thus, the convergence of several elements justifies the discoveries of these prospects.
Ring Energy (REI)
Ring Energy (NYSEMKT:REI) had a 47% year-over-year (YOY) rise in production-related sales volumes. This suggests that Ring Energy’s output has increased significantly in a short amount of time.
Additionally, Stronghold Energy II and Founders Oil and Gas are two company acquisitions that have been progressively integrated by the company. Through these purchases, Ring Energy has grown its strategic footprint in the Permian Basin’s Central Basin platform in the last 18 months. Moreover, the addition of these assets to Ring Energy’s portfolio has likely increased production levels. This, in turn, helped the company’s total sales volume rise.
Furthermore, in 2023, the business allocated $152 million towards the drilling, completion and commissioning of numerous horizontal and vertical wells. Alongside these expansions, Ring Energy further streamlined its production portfolio by selling a few non-core properties in Gaines County, Texas, and the Delaware Basin, New Mexico, reallocating resources to more profitable prospects.
United Microelectronics (UMC)
United Microelectronics (NYSE:UMC) demonstrated a strategic focus on specialty products in Q1 2024, with the specialized division accounting for a significant 57% of total sales. This concentration on niche areas, including silicon interposers for AI servers, power management integrated circuits (ICs), and Radio Frequency Silicon on Insulator (RFSOI) chips, underscores the company’s commitment to diversifying its top-line and reducing reliance on a single product or market segment. By serving these niche areas with robust demand, United Microelectronics is positioning itself for sustained growth.
Throughout Q1, United Microelectronics kept funding important pipeline projects. These projects concentrate on developing new technology platforms and specialized client solutions for fast-growing areas, including 5G, AIoT, and the automotive industry. Indeed, these proactive research investments and adaptation to evolving technical trends bring in a solid market lead.
Specifically, the creation of RFSOI, 3D IC, integrated high-voltage, and embedded non-volatile memory solutions demonstrates United Microelectronics’ focus on advancements to meet high demands in its target markets. These developments help to bring in new clients rapidly. To sum up, stability is also evident in the YOY comparison when the top-line increased by over 0.8% (in Q1).
Mitek (MITK)
Specializing in banking security software, Mitek (NASDAQ:MITK) anticipates a potential revenue increase in 2024. Currently, it projects a 10% to 12% YOY growth in revenue from its deposit security software on a normalized basis. Similarly, revenue from the identification software is expected to grow by the same percentage on an organic basis.
This optimistic forecast underscores Mitek’s ability to sustain growth in its primary product categories, even in the face of challenges such as significant one-time orders that can impact year-over-year comparisons. Notably, a substantial portion of this revenue increase is expected in the second half of 2024, setting the stage for continued momentum into fiscal 2025.
Furthermore, the company uses AI-powered data solutions to meet market demand quickly. With over 90 patents and a solution used by 99 of the top 100 U.S. banks, Mitek 1.0 solidified the company’s lead in the sector by utilizing computer vision for mobile capture and deposit technologies.
Further, Mitek 2.0 incorporated machine learning and AI to automate identity verification. Lastly, Mitek 3.0 is driven by GenAI and its orchestration platform. The company intends to be the leading authority in identity verification, authentication, and fraud management.
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.