Finance

Across thousands of stocks and peculiarities of each industry sector, it is a daunting task to pick the right equity exposure at the right time. For investors with medium to long time preference, these stocks have solid potential to return substantial profits.

Unlike penny stocks, they are on a more secure track, limiting possible risk. The current timing and price point is particularly beneficial for some of these discounted stocks moving into 2025.

Clear Secure

In early November, Clear Secure Inc (NYSE:) had a major price correction, dropping from its 52-week high of $38.88 to the present price of $27.36 per share. When this happens, it is worth considering if the stock drop is related to the company’s long-term prospects. In this case, Clear Secure appears to represent a solid buy the dip opportunity.

The company offers subscription-based service to build a user’s biometric profile. Through partnerships with other businesses that require security clearance, users then get to enjoy fast-tracked clearance. For instance, at airports, Clear Secure customers could bypass standard TSA ID checks, significantly reducing wait times.

This extends to partnerships with financial services like American Express (NYSE:), where Clear Plus members not only streamline their traveling experience but can receive up to $199 in statement credits per calendar year. With clear value of its service, the company gained 27 million members across this network of partnerships.

In Q3 2024 earnings, this was reflected in the growth of active Clear Plus members to 7.2 million, up 12.2% from the previous quarter. More importantly, the service retention remained strong at 89%, up 1% from the year-ago quarter. Clear Secure’s revenue also showed strong fundamentals at 23.7% year-over-year growth to $198.4 million, alongside bookings increase by 18.7%.

However, when the company reported Q3 figures on November 7th, they showed a $37.9 million net loss in free cash flow. In other business models, this may cause concern. But with Clear Secure, this was the expected annual outflow to the aforementioned credit card partners such as American Express.

For the full year, Clear Secure expects 40% free cash flow increase from 2023, having ended up with $38 million net income vs $26.9 million in the year-ago quarter. According to 8 analyst inputs collected by Nasdaq, the median YOU price target is $33.8 per share. The low estimate is $23 while the high forecast is $45 per share.

Micron Technology

Since the Micron Technology Inc (NASDAQ:) coverage at the end of September, MU stock has been moving sideways. Like Clear Secure, MU stock had a major price correction, but mid-year. Now priced at $103.2, MU shares are below the 52-week average of $104.97 per share.

As the beneficiary of the AI boom, Idaho-based Micron secured $6.1 billion in funding and up to $7.5 billion in favorable loans under the umbrella of the CHIPS and Science Act. Although Micron doesn’t produce AI chips like Nvidia (NASDAQ:) or AMD (NASDAQ:), its storage and memory solutions, from SSDs to DRAM, are indispensable in computing across desktop, mobile, smart home, data centers and high-performance computing (HPC) for training AI models.

Alongside Samsung (KS:) and SK Hynix, these companies cover nearly all the world’s memory needs. In the digital age, it is a certainty that this market will expand. Mordor Intelligence projects a CAGR of 7.63% for the global memory market expansion from 2024 to 2029.

But just like with Intel (NASDAQ:), that long-term expansion requires considerable capex that eats current profits. Micron has allocated up to $15 billion for its manufacturing facility in Southeast Boise, which should go online by 2026. Yet, even this pales in comparison to the planned $100 billion memory plant in New York State’s White Pine Commerce Park.

In other words, investors should view Micron Technology as a geostrategic asset, as much as Raytheon (NYSE:) or Northrop Grumman (NYSE:). As of Q4 FY24 earnings report, Micron had $8.1 million capex, but still ended the fiscal year with $1.472 billion net income. This is up from $4.862 billion net loss in FY23.

The median MU price target is $149.81 vs current $101.28 per share, according to 29 analyst inputs. The low estimate is $64 while the high forecast is $250 per share. This makes MU stock one of the largest potential gainers while also being a relatively safe exposure.

DocuSign

Tomorrow, on December 5th, 5 PM EST, DocuSign Inc (NASDAQ:) is scheduled to deliver its Q3 FY25 earnings report. This would be a good time to put DOCU on a watchlist and monitor the market’s reaction. If DocuSign fails to beat the earnings per share (EPS) consensus of $0.21, it may be a buy the dip opportunity.

Like Clear Secure, DocuSign provides a subscription-based service for electronic signatures. In the digital age, these are needed frequently to transact and manage online documents, either for individuals or large enterprises. Moreover, DocuSign integrates with Salesforce (NYSE:) and other platforms so that streamlining is even more complete.

Given the scalable nature of cloud-based SaaS, this is a relatively lean business model. Furthermore, DocuSign could easily expand into workflow automation and e-invoicing, competing with companies like Smartsheet (NYSE:).

For documents that require stricter verification layers, DocuSign charges additional transaction fees, on top of the subscription. The company has 1.6 million paid subscribers, having increased subscription revenue by 7% year-over-year to $717.4 million in the last quarter ending July.

DocuSign’s free cash flow has shown consistent growth, at $197.9 million last quarter, up $14.3 million from the year-ago quarter. This allowed the company to significantly increase DOCU stock buybacks, up to $200.1 million from $30 million in the same period.. In turn, this buying pressure raised DOCU stock 45% YTD to present price of $83.99 against the 52-week average of $59.54 per share.

Depending on tomorrow’s market reaction, investors should take advantage of downside market correction. The median DOCU price target is $70.09 according to 19 analyst inputs. The low bar is $50 while the top forecast is $108 per share.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

While Intuitive Machines (NASDAQ: LUNR) and Rocket Lab USA (NASDAQ: RKLB) took the space stock spotlight, the industry is a rapidly evolving one. These companies specialize in satellite deployments, the cornerstone of the space sector.

Although they make for relatively safe space stock exposures, there is one exception to consider due to its enormous penny stock potential.

1. Planet Labs PBC (NYSE: PL)

After merging with a special purpose acquisition company (SPAC) worth around $2.8 billion, dMY Technology Group, Inc. IV (NYSE: DMYQ) at the end of 2021, PL stock is still far away from its all-time high of $11.84 at that time.

However, currently priced at $4.46, PL stock doubled its value from the 52-week average of $2.23 per share. Founded in 2010 and backed by Google (NASDAQ:), Planet specialized in detailed imaging of Earth’s surface. To that end, the company designed, built and operates the largest 200-strong satellite constellation to date, delivering around 25 TB of data per day.

This data is then packaged for sale via subscription over 1,000 global clients, both commercial and governmental.

In August, Planet launched its first hyperspectral satellite, Tanager-1. Additionally, the company continues to build the Dove constellation for high-res Earth observation. 36 new SuperDove satellites (Flock 4BE) launched on November 11th, on top of 120 between 2019 to 2022.

Although this boosts the bottom line of SpaceX, with Planet utilizing Falcon 9 rockets, the company is making important steps to enter the profitability zone while still having zero debt. In Q2 ending September 5th, Planet reported relatively the same net loss of $38.7 million vs $38 million in the year-ago quarter.

However, Planet’s revenue picked up 14% YoY, with more government contracts. Notably, the company expanded into the military domain with NATO’s introductory contract to fill data observation gaps. With no debt and ample $249 million in cash reserves, it is safe to say that Planet Labs has a long runway before it reaches a sustainable cash flow model.

But the trick is to enter Planet Labs exposure before that period, for a long-term space stock play.

Planet Labs’ next earnings report is scheduled for December 9th, with estimated earnings per share (EPS) forecast of negative $0.1 vs reported negative $0.13 year-ago. According to 11 analyst inputs, PL’s current price of $4.46 is above the median price target of $4 per share. The low estimate is $2.5 while the top twelve months ahead is $5 per share.

2. AST SpaceMobile (NASDAQ: ASTS)

Due to terrain difficulty, there will always be demand for cellular service that doesn’t rely on ground towers but on satellites. AST partners with major mobile network operators (MNOs) like Verizon (NYSE:) and AT&T to bridge the gap, receiving a 50/50 revenue split in return.

At the end of October, AST announced the deployment of Block 2 satellite constellation aimed for 5G service with up to 120 Mbps data transfers. This is 10x higher than the previous Block1 generation. These solar-powered satellites, dubbed BlueBirds and weighing 1,500kg, are one of the largest commercially deployed satellites.

This also means that AST competes directly with SpaceX and Lynk Global, as a direct-to-device space service provider. Based in Texas, AST would need up to 60 BlueBirds for total US coverage. 17 Block 2 BlueBirds are currently in production.

Investors looking into ASTS exposure should also consider Cadence Design Systems (NASDAQ: NASDAQ:). This is the company behind AST’s next gen BlueBirds, enabling their 10x greater data transfer performance.

Year-to-date, ASTS stock is up 374% while CDNS is up 18%. As of October’s Investor Presentation, AST received $1.5 billion in funding to build its LTE & 5G space-based cellular broadband infrastructure. Across agreements with 45 MNOs, this covers around 2.8 billion subscribers.

Long-term, AST counts on expansion into the $1.1 trillion total addressable market (TAM) for global mobile wireless services. Only ~10% of Earth’s physical surface (vs population) currently has cellular coverage while 42% of the global population is yet to be connected.

This potential explains the rapid ASTS stock valuation, as the only pure play (publicly traded) LEO broadband company. As of November’s Q3 earnings, AST increased its quarterly cash position (liquidity) from $287.6 million to $518.9 million, against $94 million in total current liabilities.

Presently priced at $22.90, the median ASTS price target is $37.85 per share. Per three analyst inputs (Deutsche Bank (ETR:), Barclays (LON:), B.Riley), the bottom outlook is $31, while the top is $44.7 per share.

3. Momentus (NASDAQ: MNTS)

For investors looking for the cheapest penny space stock exposure, Momentus caters to the satellite bus market. These are the structural platforms that hold satellite payloads. Californian Momentus has a proven track record with its Vigoride platform, having deployed 18 satellites in total.

Global satellite bus market is projected to double from $13.6 billion in 2023 to $25 billion by 2032, according to Global Market Insights (GMI). Although NASA picked Momentus for launch services under its VADR (Venture-Class Acquisition of Dedicated and Rideshare) contract in October, the company received NASDAQ non-compliance notice in August for failure to report quarterly financial reports.

In September, Momentus secured a $2.75 million deal to sell 5 million MNTS shares at $0.55 per share. Such dilution ended with a 66% MNTS stock drop year-to-date. Moreover, the use of funds for debt repayment and working capital speaks more to financial stress than expansion.

However, if Momentus secures more capital, which could be the case for such a small company, alongside its proven track record, MNTS could see significant gains. It is also worthy of note that Momentus received a contract from Space Development Agency (SDA) in November for the Hybrid Acquisition for Proliferated LEO (HALO) program.

As such, MNTS stock is a highly risky penny stock, but with great profit potential. At present, MNTS shares are priced at $0.56 vs the 52-week average of $0.72 per share. The all-time high MNTS price was in February 2021, at astronomical $1,371 per share, reminiscent of memecoins at their peak hype.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

The post 3 Underrated Space Stocks Set Up for a Great 2025 appeared first on Tokenist.

has dominated headlines over the past few weeks but recently altcoins are finally coming into their own. We have seen some big moves from which has become the third largest cryptocurrency by market capitalization.

Source: TradingView (click to enlarge)

XRP has climbed back to one of the top spots after almost dropping out of the top 10, following the SEC lawsuit against Ripple. Its current market value is $139 billion, making it larger than big companies like Citigroup (NYSE:), Airbus Group NV (OTC:), and Sony (NYSE:).

Ripple’s stellar performance of late has seen a wider move in AltCoins with others such as surging as much as 20%+ in the last 24 hours.

Will the Ripple Rally and Bitcoin Range Keep the AltCoin Pump Going?

The question on peoples minds is whether the recent rally in Bitcoin and Altcoins continue. The mood in the market was gloomy yesterday after the US Government transferred $2 billion worth of Bitcoin, but things are looking up today. Even so, Bitcoin is still stuck in a tight price range.

Interest has grown in a potential AltCoin season following significant gains by less obscure crypto coins over the last week or so. During the AltCoin phase of the market, Bitcoin slows down its rapid price growth and stabilizes. At this point, investors start moving money from Bitcoin and similar top coins (which are less risky) into riskier altcoins.

During this phase, Bitcoin’s dominance, its share of the total cryptocurrency market value often decreases, which shows that funds are being spread to other coins. This rotation of money is a key signal that the Altcoin Season has begun.

However can the AltCoin season continue?

According to analysts, something that I do tend to agree with is that for the AltCoin rally to continue, Bitcoin does need to hold the high ground. As for what that number is, there have been varying levels touted with the $90k level gaining the most traction.

Another factor is that Bitcoin tends to perform extremely well in Q4 most years. This year, given the post election rally it will be interesting to gauge whether the World’s largest crypto can hold onto its gains through the month of December and keep the AltCoin rally moving forward.

Bitcoin Exchange Reserves Plummet

Recent data from on-chain analytics firm CryptoQuant showed that since Donald Trump, a Republican candidate, won the election with a pro-crypto campaign, over 171,000 Bitcoin have been removed from cryptocurrency exchanges, contributing to a market rally.

Data shows Bitcoin reserves on exchanges have been steadily dropping this year. At the start of the year, there were around 3 million BTC on exchanges, but now this number has fallen to 2.64 million.

Usually less Bitcoin on exchanges is seen as a lack of supply in the market which if coupled with heightened demand can lead to the type of rally we have seen post US election. This may provide some insight into one of the driving forces of the recent surge in prices.

Source: CryptoQuant (click to enlarge)

Companies like BlackRock (NYSE:) and Microstrategy (NASDAQ:) have increased their holdings significantly over the past few months with Microstrategy buying up another 15,400 coins for $1.5 billion earlier this month to bring its total BTC holdings above the 400,000 threshold. This is a sign of the demand that has been present of late from institutional players with ‘financial muscle’.

Meanwhile, large Bitcoin holders, known as whales, have been buying more Bitcoin over the past few weeks as the price stays below the key $100,000 level. Last month, about 16,000 BTC, worth nearly $1.5 billion, were added to whale reserves in just one day, according to CryptoQuant. Another sign that demand may remain high while supply continues to dwindle helping keep elevated moving forward.

Technical Analysis BTC/USD

Bitcoin (BTC/USD) has been holding the high ground of late above the $95k handle with any attempt to push lower being met by buying pressure. The worlds largest cryptocurrency has seen 7 consecutive daily candles close above the $95k mark.

The only positive for bears eyeing a potential deeper pullback is that Bitcoin has not risen above the $100k mark as ff yet which i believe is just a matter of time.

Increasing demand, Bitcoins strong Q4 historical performance and portfolio re-balancing for 2025 could all help propel the cryptocurrency beyond the $100k mark in December. Will this come to fruition however?

For now, immediate support is at the 95000 handle before 93565 and 91804 come into focus.

Looking at a potential break higher, and the 98000 mark is the first hurdle before the massive 100000 barrier.

Bitcoin (BTC/USD) Daily Chart, December 4, 2024

Source: TradingView.com (click to enlarge)

Support

Resistance

Original Post

Royal Bank of Canada, the country’s biggest bank, beat quarterly profit expectations, helped by its acquisition of HSBC’s domestic business and strength at its wealth management arm, sending shares to a record high on Wednesday.

CEO Dave McKay told analysts the bank added over 600,000 clients to its Canadian banking business, also helped by its sponsorship of singer Taylor Swift’s Toronto and Vancouver tour. RBC saw higher client interest in the U.S., a key market for its wealth management business.

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National Bank, the smallest of Canada’s six large banks – which together control over 90 per cent of the domestic market – also reported earnings above estimates, helped by a rise in income at its wealth management arm.

The wealth management business has been a big focus for Canadian banks as more high-net-worth clients and others are increasingly opting for services and advice to secure their financial futures.

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RBC’s wealth management division, which includes U.S. subsidiary City National, reported a threefold rise in income to C$969 million ($689 million) and recorded a recovery in loan loss provisions of C$25 million, largely helped by higher fees.

The $10 billion acquisition of HSBC’s Canadian operation helped RBC increase earnings by C$86 million, adding about 780,000 clients to its retail and commercial business and expanding its mortgage and corporate loan books.

“HSBC is a big part of the overall theme,” McKay said.

Jefferies analyst John Aiken noted that RBC’s “bigger than anticipated” quarterly dividend increase of 4% to C$1.48 per share signaled its confidence in the integration of HSBC Canada.

McKay however had a cautious tone on the future, noting rising unemployment in Canada, more constrained immigration policy and the threat of U.S. tariffs.

“You heard maybe a bit of a cautious outlook, it is just a macro call. It’s hard to make a macro call right now with so many variables, but we’re cautiously optimistic,” he told analysts.

“We haven’t changed our forecast… We said whatever it is, we will adjust to that and that will play out as it does.”

Jefferies’ Aiken said the outlook for contributions from HSBC and City National, along with a rebound in capital markets bodes well for earnings growth next year.

Provision for credit losses came in at C$840 million in the three months ended Oct. 31, compared with C$720 million a year ago. Analysts had forecast C$831.7 million, according to LSEG data.

The bank’s adjusted net income rose 17.7% to C$4.44 billion. On a per share basis, RBC earned C$3.07, 6 Canadian cents higher than the analysts’ average estimate.

National Bank reported adjusted earnings of C$2.58 per share, a cent more than expectations. Analysts said it was a “lower quality result” as its personal banking unit struggled.

Its shares were down 3.5%.

RBC’s shares rose as much as 2.4% to hit a record of C$179.86.