It’s always exciting to see a business making its debut in public, especially when it comes to a business that you think has real potential. The IPO process is a big part of what makes investing and the financial markets so intriguing, as it enables growing businesses to raise capital and provides a way for people to potentially profit from the unique insight into the market. ‘a company. However, investors should understand that not all IPOs are a winner. These types of stocks can be extremely volatile and tricky in their first few weeks of trading, which is why it is so important to delve into a company’s business model, profits, and competitive advantages before adding any. actions.
The IPO market has been hot throughout 2020 thanks to historically low interest rates and a strong rally from March lows. While the momentum has slowed down a bit this year, there are still many exciting new companies making their public debut to choose from. Here are 2 recent IPO stocks with a rise to consider adding in the coming weeks.
UiPath (NYSE: PATH)
The first is UiPath, a fascinating tech company that went public in April. Uipath offers an end-to-end automation platform, which may seem similar to many other high-growth cloud software winners from the past year. What sets UiPath apart, however, is the way the company uses artificial intelligence to help organizations accomplish their office tasks. The company’s software is designed to transform the way humans work, and it uses robotic process automation technology to handle some of the most repetitive and routine tasks that are essential for organizations around the world.
Many companies outsource tasks like data entry and processing tasks to low-wage countries like India, but with UiPath, they can simply rely on software to manage the work. When you consider all of the industries that can benefit from this type of platform, it’s easy to recognize the potential here. The company already serves industries such as business process outsourcing, finance and banking, insurance, telecommunications, healthcare, manufacturing, retail, public sector, and business process automation. .
Another thing to note about UiPath stock is that it is one of the only recent high profile IPOs that is currently trading above its opening price. The company saw its revenues increase 81% in 2020 to $ 607.6 million and has one of the highest gross margins in the software industry. While there are plenty of cloud software companies to choose from, UiPath is one that really stands out and is certainly a recent IPO with upside potential.
Hayward Holdings Inc (NYSE: HAYW)
Then we have Hayward Holdings Inc, a recent IPO that offers investors a way to take advantage of homeowners’ tendency to spend a lot on modernizing their homes. Hayward is a global designer, manufacturer and distributor of a broad portfolio of swimming pool equipment and associated automation systems. The company’s engineered products offer a variety of energy efficient and environmentally sustainable offerings and help homeowners create a truly unique and memorable outdoor living experience. Examples of this company’s products include a wide range of Internet of Things enabled controls, alternative natural disinfectants that help reduce the use of chemicals, energy efficient pumps, light emitting diode lamps, heaters, automatic cleaners, pumps and filters.
Hayward manufactures and sells a full line of residential and commercial swimming pool equipment and supplies in the United States and Europe, Central America, South America, the Middle East, Australia and other countries of Asia Pacific. It is already an industry leader and a very impressive stock since its debut in March. Hayward Holdings is up more than 43% since its IPO and looks poised for more upside, especially as housing and construction activity remains strong.
The company recently released its first quarter results which confirm that homeowner demand is driving growth. Net sales increased 96% year-on-year to $ 344.4 million and the company reported positive net profit of $ 36.9 million, which is very rare for a company that recently went public. Finally, Adjusted EBITDA increased 200% year-on-year to $ 107.3 million and the company expects net sales growth of 40-45% year-on-year in 2021. The Basics here is that Hayward Holdings is the perfect example of a recent IPO that investors can be sure to buy thanks to the fact that it is already making profits and is expected to benefit from sustained market demand throughout the year.
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