4 undervalued stocks that are predicted to grow rapidly in the near future

One of the companies selected as an investment recommendation is a chip manufacturer Rambusan oilfield service company Helix Energy Solutionsa biotechnology company Amphastar Pharmaceuticals and the Chinese delivery giant ZTO Express.

Rambus: Memory chip maker with 49% growth potential

Rambus (RMBS) manufactures components for advanced, high-performance memory chips used in computing devices. Over 75% of the company’s current revenue comes from the data center chip market. McKinsey, a strategy and management consulting company, predicts that by 2030, the world economy will need 8.6-13.6 million new memory chips for the development of artificial neural networks alone, which is almost half as many as today. However, the rapid growth in popularity of artificial neural networks also requires a significant increase in data processing capacity. Such a trend encourages investments in data centers and increases the demand for Rambus products.

Helix Energy Solutions: An oilfield services company with over 42% growth potential

Helix Energy Solutions (HLX) provides services to offshore oil, gas and renewable energy projects, specializing in life extension and providing a range of construction, repair and maintenance services. In the wake of the pandemic, the market value of oilfield service companies, including Helix Energy Solutions, has remained low, which has severely impacted the oil and gas industry as a whole. However, the recent rise in oil prices has rekindled interest in offshore projects. A recent study by Rystad Energy predicts that investment in deepwater drilling projects will peak this year and grow by 30% from current levels by 2027.

ZTO Express: China’s largest delivery operator with 31% upside potential

ZTO Express (ZTO) is one of the largest express courier companies in China, offering both domestic and international parcel transportation services thanks to its extensive logistics and partnership network.

China’s e-commerce market is growing at a high rate – at a double-digit percentage rate, and is projected to reach $2.4 trillion in sales by 2029. ZTO Express stands out as one of the most efficient companies in the sector, whose revenues grow faster than service costs. In addition, the delivery operator implements a share buyback program, the total amount of which is equal to 3% of the company’s market value, and also pays a dividend with an expected yield of 3.3% this year.

Amphastar Pharmaceuticals: A leading biotech company with nearly 30% upside potential

Amphastar Pharmaceuticals (AMPH) is a biopharmaceutical company specializing in the development and production of injectable and inhaled drugs and insulin active ingredients. The global market for injectable pharmaceuticals, a key area for Amphastar, is expected to grow nearly 2.5 times by 2033 due to increasing prevalence of chronic diseases and an aging population. To capitalize on the growing demand, the company is actively investing in research and development, focusing on creating products that have many limitations when entering the pharmaceutical market. Amphastar Pharmaceuticals currently has more than 25 commercial products in its portfolio, and more than 20 drugs are under development.

Why should Freedom24’s investment recommendations be trusted?

Freedom24 analysts have 10 years of experience in global equity markets, including Wall Street.

Results of implementation of investment recommendations:

• In the last 3.5 years, 331 out of 503 recommendations have been implemented;

• more than 60% of the recommendations have been implemented successfully;

• the average return on investment of the implemented recommendations is 16%;

• the average time for the full implementation of investments is 29.2 weeks.