The economy is recovering after the rate hike’s turbulent effects. Sharp investors are looking for opportunities to profit from this turnaround. In a dynamic macroeconomic environment, several industries and businesses are efficient in adapting and strategically positioning themselves to capitalize on the resurgence of demand. These three businesses, which stand for different industries, are in the construction, digital advertising, and technology distribution sectors.
First, with a strategic focus on profitability and margin development, this industry leader in construction has shown extraordinary financial stability and growth velocity. Operating in the ever-changing world of digital advertising, the second one has profitably and robustly grown its income by taking advantage of the surge in demand for Connected TV advertising. Through its strategic emphasis on developing technologies, the third company participates in technology distribution. It has demonstrated resilience and adaptability in the face of market problems.
Learn more about these firms’ strategic ambitions, market positioning, and financial performance by reading on.
Sterling (STRL)
Sterling (NASDAQ:STRL) has continuously yielded outstanding performance outcomes. In 2023, the company’s adjusted net income increased by 43%. Sterling’s overall revenue increased by 11% to $1.97 billion in the year. Thus, the company’s focus on profitability and margin improvement led to adjusted EBITDA at the high end of the target range and net income above expectations, although just missing the advised range.
By the end of the year, the entire backlog had grown by 46%, indicating potential income growth in 2024. Additionally, there was a noteworthy 35% growth in the E-Infrastructure backlog, further strengthening revenue visibility. Sterling produced over $478 million in operating cash flow, more than 3.5 times its net income. Hence, this indicates sufficient resources for upcoming investments and expansion plans.
Lastly, the company’s preferred use of cash is still to fund accretive acquisitions. This strengthens the company’s competitive position and expands its service offerings. To sum up, Sterling’s growth plan is aligned with the strategic decision to add plumbing skills to its portfolio by acquiring Professional Plumbers Group.
Viant (DSP)
Viant’s (NASDAQ:DSP) solid progress in Connected TV demonstrates its fundamental capability to take advantage of the expanding market for digital video advertising. CTV holds over 40% of all platform spending in Q4 2023, demonstrating the channel’s increasing significance in Viant’s revenue mix. This solid result reflects Viant’s ability to draw in sponsors and run focused CTV advertising campaigns. This is done by utilizing its Household ID technology and Direct Access program.
Furthermore, Viant’s high revenue growth reflects the growing demand for its advertising technology solutions and its progressive business tactics. Viant’s sales boosted by 18% in Q4 compared to Q4 2022, to $64.4 million. This expansion signifies that the company has progressed in taking a bigger fraction of the advertising industry.
Finally, Viant’s uplifted bottom line and operational edge are demonstrated by the company’s boost in adjusted EBITDA. With a growth rate of about 5X, Viant’s adjusted EBITDA boomed to $13 million in Q4, a massive year-over-year gain. Overall, this large rise indicates that the business has successfully increased profitability and streamlined its cost structure.
TD Synnex (SNX)
The way that TD Synnex (NYSE:SNX) performs in terms of top-line and gross billings demonstrates how sharp it is in the market. TD Synnex reported total gross billings of $19.3 billion for Q1 2024, 5% less than Q1 2023.
Even with this drop, the corporation could keep its revenue within the projected range; net sales were $14.0 billion, or 7.6% less than the previous year. This suggests that despite difficulties with gross billings, the business was able to control its revenue generation.
Moreover, the company had solid growth in core tech domains such as cloud, AI, the Internet of Things, data, and security from year to year. These techs held a sizable percentage of the company’s top line in Q1, accounting for 23% of total gross billings. The company’s market presence and flexibility may be inferred from its success in various locations.
Finally, in the Americas, TD Synnex continued to have robust gross billings of $11.5 billion, even with an 8.5% revenue drop. Similarly, in Asia-Pacific and Europe, revenue fell by 1.2% and 7.3%, respectively.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.