All in all, these three stocks could make great long-term investment opportunities.
Enfusion (ENFN)
Enfusion (NYSE:ENFN) is a cloud-based software provider for the investment management industry. The company offers an integrated platform that combines portfolio management, order execution, risk analytics, accounting and reporting functions for hedge funds, asset managers and family offices. Furthermore, Enfusion provides several outsourced middle- and back-office services, including trade reconciliation, valuation and fund administration.
Trading at $9.30 per share, Enfusion remains undervalued with a forward-looking enterprise value-to-sales ratio of 4.1x and enterprise value-to-EBITDA ratio of 19.4x. The software platform for investment managers generates positive net income and operates in an industry with evolving and complex needs. Despite the macro environment being uncertain, banks and asset managers are still willing to invest in IT solutions to modernize their internal processes.
Enfusion’s ended 2023 with double-digit top-line growth with revenue reaching a record figure of $174 million.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ:RGTI) is a vertically-integrated quantum computing business. This means the company both designs and manufactures its multi-chip quantum processors. Rigetti uses superconducting circuits as qubits fabricated on silicon chips and operating at near-zero temperatures. To deliver its quantum computing capabilities to clients, Rigetti leverages cloud service networks while also providing quantum software development tools as well as quantum hardware design and manufacturing.
In January, Rigetti Computing announced the availability of its 84-qubit Ankaa-2 quantum computing system, which will be accessible through Rigetti’s cloud service. Similar to its competitor IonQ (NYSE:IONQ), Rigetti announced a successful Q4 earnings period, which saw both revenue and earnings per share beat Wall Street estimates.
RGTI’s shares have risen 48% from a year-to-date perspective but have fallen 22% over the past 30 days, signaling a good investment opportunity for those wanting to allocate to the growing sector of quantum computing. Like artificial intelligence, quantum computing will significantly transform the digital age, which makes buying and holding the stock for the long term an intriguing idea.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) is a lithium company that primarily mines lithium out of the Thacker Pass project in Nevada, the largest lithium deposit in the U.S. The Thacker project already has tremendous potential, with 16.1 million tons of battery-grade lithium carbonate equivalent (LCE) available for extraction.
With the Thacker Pass project having received a $650 million investment from General Motors (NYSE:GM), the project’s future role in supplying battery materials to power electric vehicles is undeniable. Moreover, the project will likely generate $1.2 billion in annual EBITDA, more than justifying LAC’s current enterprise value of $900 million.
A couple weeks ago, to add to Lithium Americas’ nearly $200 million of liquidity, the U.S. Department of Energy approved a $2.26 billion loan, one of its largest investments in the mining industry to date.
LAC shares have risen more than 28% on a year-to-date basis, but still trade just above $7/share. Lithium and electric vehicles will be intrinsic to the future of transportation, and holding lucrative lithium projects like LAC will expose investors the long-term benefits.
On the date of publication, Tyrik Torres did not have (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.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.