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Stocks on the Brink of Turning a Profit, According to Jefferies
DraftKings: A Promising Future Ahead
Jefferies analyst John Colantuoni believes that DraftKings is on the verge of turning a profit, thanks to its expansion into a critical mass of states. With the potential to lift earnings before interest, taxes, depreciation, and amortization in 2024 and 2025, DraftKings stock has soared more than 130% since January. Jefferies holds a buy rating on DraftKings stock and has set a price target of $35 per share, representing a 39% upside.
Boeing: Clearing the Way for Improved Cash Margins
Boeing has seen a successful year with a 13% gain in its stock. Jefferies analyst John Colantuoni suggests that once the company clears its inventory of the 737 MAX and 787 models, it will experience improved cash margins. Jefferies holds a buy rating for Boeing stock and has set a price target of $250 per share, providing an 18% upside from the current value.
SoFi: Advantages of a Federal Bank Charter
As one of the few fintech companies to attain a federal bank charter, SoFi enjoys a lower cost of capital and a stronger net interest margin from longer-term loans. This significant advantage has contributed to SoFi's stock climbing over 78% since the beginning of the year. Jefferies maintains a buy rating for SoFi stock and has a price target of $9.60 per share, indicating a potential 19% upside.
Additional Promising Stocks on Jefferies' Radar
In addition to DraftKings, Boeing, and SoFi, Jefferies has identified several other stocks that may be on the brink of turning a profit. The firm's analysis suggests that these companies are experiencing operational improvements and are hitting significant growth milestones. Investors should keep an eye on these stocks for potential future opportunities.
A Hot Take on How These Stocks Could Impact a New Business
The analysis presented by Jefferies on stocks that are on the brink of turning a profit offers valuable insights for new businesses and entrepreneurs looking to navigate the market. Understanding the potential future trends and success stories of these companies can provide valuable guidance when shaping a business strategy.
One key takeaway is the promising future of DraftKings, a company that has expanded into a critical mass of states. This development signifies the potential for growth in the sports betting industry, presenting opportunities for businesses related to online gaming, sports media, and even traditional sports leagues seeking partnerships. Entrepreneurs in these fields should consider the potential for collaboration or marketing ventures with DraftKings to capitalize on its projected earnings growth.
Another notable stock on Jefferies' radar is Boeing. As the company clears its inventory of certain models, an improvement in cash margins is expected. For new businesses operating in the aerospace sector, this insight indicates the potential for increased demand and revenue opportunities. Entrepreneurs with ideas related to aircraft maintenance, engineering, or aircraft parts manufacturing may find valuable prospects to explore within this ecosystem.
Additionally, SoFi's advantage as a fintech company with a federal bank charter highlights the potential benefits of establishing a regulated financial institution. New businesses in the financial technology space should consider the advantages that come with obtaining a banking charter, such as lower costs of capital and stronger net interest margins. Exploring innovative solutions in consumer banking, lending, or digital finance could prove lucrative with the right regulatory framework.
In conclusion, entrepreneurs can draw inspiration from Jefferies' analysis of stocks on the brink of profitability. By identifying potential growth trends and understanding the factors that propel these companies forward, new businesses can position themselves strategically and capture opportunities in related industries. It is vital for entrepreneurs to keep a close eye on these stocks and market developments to navigate the ever-changing landscape successfully.
Article First Published at: https://www.cnbc.com/2023/07/09/these-stocks-that-are-about-to-turn-a-profit-should-beat-the-market-jefferies-says.html