Stocks to buy

Three companies have emerged as true titans in the rapidly changing financial and technological industries, ready to spearhead the next global boom. These companies have succeeded financially in a sea of uncertainty by going above and beyond the norm. Their tales, replete with tenacity, inventiveness, and tactical forethought, read like contemporary epics.

With its rapid growth in total payment volume (TPV) and wide-ranging clientele, the first one is a prime example of the disruptive force in digital payments. The second one has impressive revenue growth, driven by a steadily expanding customer base and sophisticated business practices. It exemplifies the skill of flexibility in a market that is changing quickly. Meanwhile, the third one has steady top-line growth, reflecting the union of technology and vision, supported by innovative 5G solutions and well-timed customer acquisitions.

These three businesses are rays of optimism and potential as investors anxiously await the next round of economic recovery. Their accomplishments are a testament to their particular skills and larger tendencies that will likely lead to transaction processing and IT software.

PagSeguro (PAGS)

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PagSeguro’s (NYSE:PAGS) TPV increased significantly by 11% year over year (YOY) to about BRL100 billion in Q3 2023. This shows that the company’s market penetration is rising.

Due to great performance across various merchant groups, including micro-merchants, SMBs, and major businesses, the firm has exceeded industry growth rates in TPV. This illustrates PagSeguro’s capacity to attract and cater to a wide range of clients. Hence, the substantial TPV increase highlights PagSeguro’s dominance in digital payments and its capacity to handle a larger volume.

Moreover, in Q3, PagSeguro’s PagBank clientele surpassed 30 million, with 16% annual growth. This demonstrates the company’s capacity to attract and keep clients by providing various financial services. A BRL21.6 billion in deposits was achieved due to PagBank’s cash-in of BRL56 billion. This proves PagSeguro’s ability to grow its wallet share and cultivate a devoted clientele. 

Finally, PagSeguro continues to invest in cutting-edge technology to improve the user experience and product offerings. This includes the addition of fresh functionalities like the Tap On phone solution integrated into the company’s exclusive ERP software and facial recognition for payment linkages.

StoneCo (STNE)

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In Q3 2023, StoneCo (NASDAQ:STNE) had strong growth in both sales and income. The company’s total revenue and income reached R$3,139.9 million, a significant rise of 25.2% YOY. The considerable rise in financial services platform revenues of 29.0% was the main driver of this development. Two main causes of this expansion are the company’s expanding active clientele and ongoing enhancements to its commercial strategy.

Furthermore, StoneCo experienced a surge in sales due to the rise of its engaged clientele in many industries. In particular, the total payments active client base reached 3.3 million, signifying a net gain of 316,200 active clients from one quarter to the next. The rise in active clientele suggests merchants increasingly utilize StoneCo’s payment solutions, leading to increased transaction volumes and company profits.

Additionally, StoneCo’s revenue growth was bolstered by ongoing improvements to its commercial philosophy. By improving the quality of its services, product choices, and pricing policies, StoneCo was able to draw in more customers and boost transaction volumes. Overall, the company can modify its business practices in response to the changing demands of its clientele.

Radcom (RDCM)

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The financials attest to Radcom (NASDAQ:RDCM) showing a steady pattern of revenue increase over the years. The firm reached a major financial milestone in 2023, bringing its total sales to $51.6 million, up 12% YOY. Furthermore, revenue for Q4 2023 was $14.0 million, up 14% YOY.

Fundamentally, this steady increase underscores Radcom seizing opportunities in the market and developing its clientele. Furthermore, Radcom’s client base became even more diverse in 2023. The arrival of Vodafone (NASDAQ:VOD) brought new growth prospects. By partnering with Vodafone, Radcom has a great opportunity to grow its business and diversify its income sources. The company is a global operator based in the U.K. that functions in 21 countries.

Moreover, focusing on cutting-edge technology, especially in the 5G sector, is another reason for Radcom’s revenue growth. Radcom’s cutting-edge 5G assurance solutions are becoming increasingly significant as operators move to 5G networks. They look for assurance solutions to maximize performance.

Overall, Radcom can leverage the increasing demand for its products. Therefore, the company can boost revenue growth by adapting to the changing demands of the telecommunications sector.

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.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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