Should investors prepare for a winter full of persistent headwinds? Inflation remains high, rising interest rates are putting a squeeze on capital as well as making consumer credit more expensive, and both the China COVID lockdowns and the Russian war in Ukraine continue to crimp global supply chains.
But even though the markets are facing serious headwinds, not every stock is going to react by falling. According to the analysts at Wall Street giant Deutsche Bank, two interesting stocks are likely to see substantial gains going forward.
Turning to the TipRanks database, we find that both are Buy-rated, and both have shown heavy losses in recent months, severely underperforming the broader markets. Even so, the Deutsche Bank analysts believe that these stocks have room to gain in 2023, on the order of 40% or more. Here are the details.
BlackSky Technology (BKSY)
We’ll start with a microcap satellite intelligence company, BlackSky. This company owns and operates a leading network of low earth orbit small satellites, and can capture imagery in a cost-effective, efficient matter wherever and whenever its customers require. BlackSky’s services include data processing on its Spectra AI software platform, which can integrate data from third-party sensors for critical insights and analytics. The company’s customer base includes US and international governmental agencies, as well as global commercial businesses and organizations.
BlackSky controls a substantial constellation of small satellites, and the company can bring multiple advantages to its customers. These include a 90-minute average product delivery, a 60 minutes average on satellite revisits, and up to 15 satellite revisits per location per day. In addition, BlackSky can provide direct satellite downlinks to both ground- and maritime-based operations.
All of this adds up to a solid business in a unique niche. BlackSky leveraged this to an impressive 113% year-over-year revenue gain in 3Q22, to a total of $16.9 million. This gain was powered by solid gains in imagery and software analytical services, which…
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