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Finding a quality up-and-coming stock is a tricky proposition, but doubly so now that we’re well past the ZIRP-era “stocks go up” sentiment. In the past, you could throw capital at any up-and-coming stock and have a pretty good chance of generating returns. But, today, investors demand fundamental strength and a solid path to profitability before they consider a sizable investment.
However, these companies meet the mark. They have the financial stability coupled with long-term potential that underscores the best qualities of an up-and-coming stock. While they may not 10X as quickly as stocks did in 2020 or 2021, they remain quality long-term holds. This is especially true considering how cheap they trade today.
SoundHound AI (SOUN)
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Covering small-cap SoundHound AI (NASDAQ:SOUN) months ago, I recommended it based on its unique position among voice recognition competitors. Since then, the core thesis hasn’t changed. But this up-and-coming stock is enjoying newfound popularity among investors.
The bullish thesis proposes that SOUN is poised for significant growth as it innovates in the often-ignored voice recognition sector. The potential market for voice recognition technology is expanding, such as SOUN’s contribution to restaurant efficiency. And, companies like SOUN demonstrate that their market scope depends on their ability to adapt their technology to various needs.
This week, Nvidia (NASDAQ:NVDA) affirmed SoundHound’s up-and-coming stock potential and recently declared a multi-million-dollar investment in the company. Noticeably, this uplifted SoundHound’s stock value. Known for its strategic investments in promising AI startups like Recursion Pharmaceuticals (NASDAQ:RXRX), Nvidia’s latest move follows its participation in SoundHound’s $75 million funding round in 2017. This signals that Nvidia has been tracking SoundHound’s progress well before the surge in AI interest. Continuous support from Nvidia, a leading figure in the AI industry, suggests a promising outlook for up-and-coming stock SoundHound.
AST SpaceMobile (ASTS)
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AST SpaceMobile (NASDAQ:ASTS) is one up-and-coming stock that keeps stacking up win after win. Last week, the company announced a bombshell (secret) deal with the U.S. government.
Although specific details remain under wraps, a lack of clarity doesn’t overshadow its significance. Like Nvidia throwing its hat in SoundHound’s ring, U.S. government support for ASTS is a strong endorsement of the company’s potential and future offerings. This approval is particularly noteworthy given that ASTS is still in the pre-revenue phase, with its initial widespread commercial launches set for later in the year.
This announcement follows closely on the heels of ASTS securing a significant strategic investment that attracted notable investors such as AT&T (NYSE:T) and Google (NASDAQ:GOOG, NASDAQ:GOOGL
The Resilience of ClearPoint Neuro in the Healthcare Sector
The Impressive Comeback of ClearPoint Neuro (CLPT)
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ClearPoint Neuro (NASDAQ:CLPT) has displayed remarkable resilience, bouncing back after a challenging period which led to a near 20% drop in its per-share pricing over the last year. Despite this setback, ClearPoint Neuro stands as a standout choice among emerging healthcare stocks, offering a golden opportunity for small-cap healthcare investors.
The company’s groundbreaking ClearPoint platform has redefined brain surgery by enhancing procedural accuracy in diagnosing and treating neurological conditions. The recent surge in share price can be predominantly attributed to a series of rapid regulatory approvals, placing ClearPoint at the forefront of medical device innovation.
Spearheaded by a pivotal approval from the Food and Drug Administration (FDA), ClearPoint’s SmartFrame OR Stereotactic System has revolutionized radiation therapy in stereotactic radiosurgery. This non-invasive option effectively targets cancerous tissues with radiation to shrink tumors, distinguishing itself with its in-operating room functionality that extends its use beyond environments exclusively equipped with MRI technology. Joe Burnett, the President and CEO, emphasizes the significance of this advancement, highlighting its potential to benefit a much larger group of patients by enabling the product’s use in a broader range of hospitals.
Looking Ahead in a Turbulent Market
Unquestionably, ClearPoint Neuro has been through the wringer, but its resurgence sends a powerful message to investors about the company’s grit and determination. Its recent share offering, though dilutive, has not curtailed its upward trajectory, demonstrating the unwavering confidence investors have reposed in the company’s potential. It’s a testament to the company’s strength and standing in a fiercely competitive market.
As 2024 dawns, it seems ClearPoint Neuro is preparing to assert its dominance in the healthcare sector, defying all odds and naysayers. The newfound vigor pulsating through the company bodes well for investors, hinting at a prosperous year ahead despite the trials it has faced.
The up-and-coming healthcare stock is certainly on the radar for investors looking to ride the wave of resurgence and capitalize on a company that is well and truly on the upswing.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
