Weed, Trains and Ski Jackets: 10 Companies to Watch Now (2024)

Alstom

Cash flow at the train and tram maker is starting to recover from last year’s surprising loss and has the potential to exceed expectations by more than 20% through 2027. Spurred in part by orders for the new European Train Control System, which will replace incompatible sytems across European Union countries, signaling and service sales growth is set to surpass analysts’ consensus estimates. —Omid Vaziri

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Anta Sports

The sportswear and accessory maker’s profit margin is likely to expand in 2024, even as analysts’ consensus is predicting a decline on concerns about negative Chinese consumer sentiment. The company is controlling its inventories well, reducing the risk of price cuts on unsold merchandise, and its Kolon Sport and Descente brands are seeing improvements in sales. —Catherine Lim

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Direct Line

The insurer has a new CEO and a revamped senior management team working to restore profitability in its core auto-coverage business, but market expectations look too optimistic: UK insurance pricing is weakening, and consensus earnings for next year don’t reflect that. —Kevin Ryan

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First Solar

The US solar panel producer is finding bright spots in a market experiencing a global supply glut. With the Inflation Reduction Act spurring US demand, and trade restrictions effectively limiting supplies from Asian competitors, First Solar is set to exceed expectations even as profits for Chinese producers fall. —Rob Barnett

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Insulet

Recent US Food and Drug Administration clearance for an insulin pump aimed at treating Type 2 diabetes should extend the device’s momentum, with sales on track to jump by about 20% this year. The product, the first wearable automated insulin-delivery system, is already gaining share among patients with Type 1 diabetes. —Matt Henriksson

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Japan Exchange

Global attention to Japanese markets is increasing, with many pundits declaring the end of the economy’s “Lost Decades.” This is spurring strong trading activity across stocks, bonds and derivative products at the securities’ exchange. Consensus upgrades haven’t kept pace, and positive surprises should continue. —Sharnie Wong

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LG Chem

Weakness in China’s property market is reverberating through the supply chain, driving down sales of consumer and construction plastics, while weaker US demand for electric vehicles is also hitting the petrochemical maker’s battery unit. The consensus of analysts’ expectations doesn’t fully reflect these challenges, and profits could fall short by more than 20% this year. —Vivien Zheng

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Saudi National Bank

Expected central bank policy rate cuts will create a profit challenge for most banks, but Saudi National’s profit margins should improve, given longer-oriented loans and declining deposit costs. Falling interest rates would also likely accelerate loan growth. Taken together, profits could jump 15% or more in the coming year. —Edmond Christou

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Synopsys

The electronic design automation company’s planned $33 billion acquisition of simulation software provider Ansys faces antitrust scrutiny, and investors are concerned the deal will be blocked. But the takeover is likely to win approval eventually, which would boost the company’s outlook. If the deal is greenlighted, Ansys’ 14% share price discount to Synopsys’ bid should close. —Niraj Patel and Jennifer Rie

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Trulieve

The cannabis producer and distributor’s earnings could soar to new highs if Florida legalizes marijuana for recreational use, given about 70% of the company’s dispensaries, currently only for medical marijuana, are in the state. Pennsylvania and Arizona are also important markets for Trulieve. Federal reclassification of the drug would offer an even bigger boost, but that would likely require a Democratic sweep in the November elections. —Ken Shea

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