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Picks | Discover high-quality growth stocks to add to your watchlist.
Edge Sponsor
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VERSES AI (Canada: VERS.NE) (USA: VRSSF) is a cognitive computing company specializing in next-generation Artificial Intelligence. Modeled after natural systems and the design principles of the human brain and the human experience, VERSES flagship offering, GIA, is an Intelligent Assistant for anyone powered by KOSM, a network operating system enabling distributed intelligence. These are built on open standards, allowing KOSM to transform disparate data into knowledge models that foster trustworthy collaboration between humans, machines, and AI, across digital and physical domains.
Recently, VERSES announced that a leading national US pharmacy retailer entered a collaboration agreement with the Company to amplify its digital transformation efforts.
Here Are The Highlights:
This multi-year collaboration aims to enhance the US pharmacy retailer’s operational intelligence and the efficiency of its existing and newly designed distribution centers. It is expected to progress to a nationwide rollout.
Warehouses are complex systems with many still relying on a multitude of legacy software and processes that can lead to a variety of limitations. VERSES will address these challenges by mapping the US pharmacy retailer’s enterprise data into a unified knowledge model powered by KOSM and its WayFinder services that will run simulations to more accurately predict and streamline decision-making.
When discussing the collaboration, Founder and CEO Gabriel René said, “While we’re unable to disclose specific terms of the contract at this time, it is significantly revenue-bearing, and more importantly, it serves as a powerful signal that VERSES has arrived at the point where we are a preferred technology provider for a Top 10 Fortune 100 enterprise entrusted with deploying impactful optimization solutions at scale.
Quality Compounders
 Albemarle Revenue 2001 to 2023 | companiesmarketcap.com |
Albemarle (ALB)
Industry
Chemicals – Diversified
Overview
A new stock on our radar, Albemarle is a globally acclaimed leader in the specialty chemicals industry, driving innovation and sustainability through its diverse portfolio of advanced chemical solutions. Their expertise in clean fuels, catalysts, and lithium production positions them at the forefront of our world’s clean energy revolution. With a rich history and a proven track record of excellence, Albemarle will play an increasing role in the sustainability of our world, making it a promising prospect to have on your watchlist.
Financials
Return on Invested Capital: 18.60%
Profit Margin: 40.50%
Earnings Per Share (5-Year): 43.50%
Revenue (5-Year): 19.00%
Debt to Equity: 0.36
Market Cap: $21.51 Billion
Current Stock Price: $182.45
Intrinsic Value: $1,018.63
Margin of Safety: 82.09% Below Intrinsic Value
Competitive Advantages
Diverse Specialty Chemical Portfolio: Albemarle’s extensive range of specialty chemicals across multiple industries is a significant strength. This diversification mitigates risk, allowing them to weather market fluctuations and economic downturns more effectively. It also provides opportunities for cross-selling and synergies within its diverse customer base.
Global Lithium Leadership: Albemarle’s unparalleled expertise and leadership in lithium production represent a formidable competitive advantage. They are a pivotal player in the lithium-ion battery supply chain, which is critical for electric vehicles and renewable energy storage. This market dominance positions Albemarle to capitalize on the booming demand for clean energy solutions, making it an indispensable partner for companies seeking to reduce carbon footprints.
Innovation & Research Excellence: Albemarle’s commitment to innovation and research is a driving force behind its competitive edge. They continually invest in R&D to develop new products, improve existing ones, and stay ahead of industry trends. This dedication to technological advancement not only enhances their product offerings but also solidifies their position as a preferred supplier in various markets.
 Medpace Revenue 2015 to 2023| companiesmarketcap.com |
Medpace Holdings (MEDP)
Industry
Medical Services
Overview
Don’t sleep on this one, Medpace Holdings is a distinguished powerhouse in the clinical research and contract research organization sector, renowned for its expertise in guiding pharmaceutical and biotechnology companies through the complex process of drug development. With a reputation built on scientific rigor, regulatory compliance, and unwavering commitment to excellence, Medpace is a trusted partner in bringing life-changing therapies to market. Their end-to-end clinical development solutions, from study design to regulatory submission, ensure efficient, cost-effective, and timely drug development. This enables it to be a predictable investment with enduring qualities for many years to come.
Financials
Return on Invested Capital: 55.30%
Profit Margin: 16.00%
Earnings Per Share (3-Year): 51.60%
Revenue (3-Year): 27.30%
Debt to Equity: 0.14
Market Cap: $8.482 Billion
Current Stock Price: $277.76
Intrinsic Value: $315.39
Margin of Safety: 11.93% Below Intrinsic Value
Competitive Advantages
Therapeutic Mastery: Medpace’s unmatched competitive advantage stems from its unwavering commitment to scientific excellence. With a team of seasoned professionals, including physicians, scientists, and regulatory experts, Medpace brings unmatched expertise to clinical research. This deep scientific knowledge allows it to design and execute complex trials, navigate regulatory hurdles, and provide valuable insights to pharmaceutical and biotech clients, ensuring the successful development of life-saving drugs.
International Presence & Regulatory Prowess: Medpace’s global presence and regulatory prowess are vital competitive advantages. They operate in over 45 countries, providing access to diverse patient populations and regulatory environments. Their ability to navigate complex global regulatory frameworks ensures that trials meet all requirements, accelerating the path to drug approvals. This global reach and regulatory acumen make Medpace a trusted partner for pharmaceutical and biotech companies seeking to bring new therapies to market efficiently and successfully.
Full-Service Clinical Development: Medpace’s end-to-end clinical development capabilities are a formidable asset. They offer comprehensive solutions, from study design and site selection to data analysis and regulatory submissions. This integrated approach streamlines the drug development process, enhances efficiency, and reduces costs. It positions Medpace as a one-stop partner for clients, simplifying the often intricate landscape of clinical research.
 Livent Revenue 2018 to 2023 | companiesmarketcap.com |
Livent (LTHM)
Industry
Chemicals – Specialty
Overview
A pure-play lithium-ion battery stock, Livent is another formidable and forward-thinking force in the world of sustainable energy solutions. Renowned for its commitment to driving the global transition to clean energy, the company plays a pivotal role in enabling electric mobility, renewable energy storage, and sustainable power generation. This sterling reputation for quality, reliability, and innovation, puts it at the forefront of one of the fastest-growing markets in the world, making it a potentially attractive investment, especially at current valuations.
Financials
Return on Invested Capital: 15.80%
Profit Margin: 38.80%
Earnings Per Share (5-Year): 29.50%
Revenue (3-Year): 18.50%
Debt to Equity: 0.15
Market Cap: $3.628 Billion
Current Stock Price: $20.18
Intrinsic Value: $160.16
Margin of Safety: 89.10% Below Intrinsic Value
Competitive Advantages
Leadership in Sustainable Lithium Production: Livent stands as an unrivaled leader in sustainable lithium production, positioning them at the vanguard of the global clean energy revolution. Their commitment to environmentally responsible lithium extraction and processing methods not only meets the stringent demands of today’s eco-conscious consumers but also ensures a secure supply of essential materials for electric vehicles and renewable energy storage.
️ Innovation-Driven R&D: Livent’s relentless pursuit of innovation and research is a formidable competitive edge. Their cutting-edge research and development initiatives continually push the boundaries of lithium-ion battery technology. By staying at the forefront of lithium chemistry, they are instrumental in advancing the performance and efficiency of energy storage solutions, driving the adoption of clean energy technologies worldwide.
Global Reach & Strategic Partnerships: Livent’s global presence and strategic partnerships amplify its competitive advantage. They operate in key lithium-producing regions and collaborate with industry leaders, securing access to critical resources and expanding their reach. This global footprint and network of alliances position Livent as a reliable and preferred partner for companies seeking sustainable energy solutions.
Rising Star
 TechTarget Revenue 2005 to 2023| companiesmarketcap.com |
TechTarget (TTGT)
Industry
Internet Content
Overview
For all of the software enthusiasts, TechTarget is a dominant and influential player in the world of B2B technology marketing and data intelligence. With a wealth of industry-specific websites, content, and engagement tools, TechTarget connects technology buyers with the right solutions, making it an indispensable partner for technology marketers seeking to drive growth and ROI. This commitment to delivering precise, data-driven solutions, empowers its customers to reach their target audiences with unmatched precision and efficiency making it a highly valuable asset across a variety of diverse markets.
Financials
Gross Margin: 71.20%
Revenue (5-Year): 22.30%
Debt to Equity: 2.26
Cash on Hand: $334.30 Million
Market Cap: $813.76 Million
Current Stock Price: $27.76
P/S: 3.43
Catalysts
Surging Demand for Technology Solutions: A powerful catalyst for TechTarget is the ever-increasing global demand for technology solutions. In an era where technology drives innovation across industries, businesses are hungry for precise, data-driven insights to make informed IT purchasing decisions. TechTarget’s unmatched ability to connect technology buyers with the right solutions positions them to capitalize on this burgeoning demand, fostering substantial growth.
Data-Driven Marketing Revolution: TechTarget is at the forefront of the data-driven marketing revolution. As companies increasingly prioritize ROI-focused strategies, the need for precise targeting and measurable results has never been more critical. TechTarget’s expertise in leveraging data intelligence and engagement tools equips technology marketers with the means to achieve superior marketing outcomes, making it an indispensable partner in the evolving landscape of B2B technology marketing.
Expanding Technology Ecosystem: The technology ecosystem continues to expand, encompassing a wide array of emerging domains such as cloud computing, artificial intelligence, and cybersecurity. TechTarget’s agile and adaptive approach positions them to swiftly penetrate and dominate these growing niches. This adaptability ensures they remain at the forefront of industry trends and maintain their status as the go-to resource for technology companies seeking to reach and engage their target audiences.
Our Methodology
Quality Compounders
Our first goal as investors is to never lose money. The most effective way to accomplish this is by investing in world-class businesses that are trading below their intrinsic value. A world-class business is financially healthy (i.e. high-profit margins, growing revenue and earnings, as well as little to no debt), has multiple durable competitive advantages, and has a brilliant management team (i.e. ROIC measures how effectively a CEO allocates capital). We strive to buy these businesses below their intrinsic value because it limits the downside risk while improving the upside potential (i.e. think of it like buying a Ferrari at 50% off, then selling it to someone else at full price, risk-free). If one can find these opportunities and their conviction is strong, then one should take full advantage before the rest of the market realizes what they are missing.
Rising Star
Small or early growth companies (i.e. less than $1 billion market cap) may not be profitable or have a durable competitive advantage quite yet, but they still pack a punch. Investing in these businesses is a tricky game, but if you can spot them before they take off, it may be the only investment you ever need to make. To spot a rising star, the business must be financially stable (i.e. high operating margin, growing revenues, little to no debt, and ample cash on hand), have a large addressable market with multiple catalysts, and a highly ambitious and motivated management team that is willing to do whatever it takes to succeed. If you can find early-stage businesses with these characteristics, then you may be on the path to financial freedom quicker than you think.