Investors looking for hidden gems in companies have three to consider.
In the automotive parts supplies market, BorgWarner (BWA). In the first quarter, the firm posted total sales rising by 6% to $3.6 billion. Despite the weak automotive sector, the firm increased its profits by 27% to $1.03. In the quarter, the firm secured multiple new eProduct awards. This demonstrates that BWA provides leading-edge technology for customers transitioning towards electrification.
For the full year of 2024, BorgWarner expects to post sales of $14.4B to $14.9B.
In the chip sector, Axcelis Technologies (ACLS) shares are still half-price from last year’s $200 peak. In the first quarter, it posted GAAP EPS of $1.57. Revenue fell by 0.6% Y/Y to $252.37 million. The strong quarter benefited from silicon carbide power device shipments to China. This uptrend will continue this year.
In Q2, it anticipates closing several evaluations. Although this lowers gross margins, it will snap back in its full-year results.
Axcelis will extend its lead in the power market by positioning itself in the advanced logic market.
In Canada, GFL Environmental (GFL) is not a cheap stock for a good reason. Its adjusted EBITDA margin expanded by 30.8% in the first quarter. As it deleverages its balance sheet, GFL will post a decline in net quarterly losses.
