While the majority of the world struggled with managing the havoc caused by the COVID-19 pandemic, the stock market experienced unexpected surges. Numerous companies experienced incredible growth, with some still signaling future potential. To gauge the potential of these companies, we will investigate the trajectory of three specific stocks that seem to be just gearing up their move towards higher profits; Change Healthcare (CHNG), Range Resources (RRC), and Pennsylvania Real Estate (PEI).
To begin with, Change Healthcare (CHNG) serves a dual purpose for investors seeking stability and potential for growth. Firstly, the company operates a platform that helps streamline a plethora of services in the healthcare sector. It connects healthcare providers, customers, and partners to facilitate smoother, more efficient data flow. This data optimization goes a long way in rendering enhanced patient care. Secondly, the company is currently under the scanner of a potential acquisition by UnitedHealth’s OptumInsight unit. This merger indicates a strong potential for the stock’s value moving upward. There is a substantial financial incentive involved, as it is predicted that the company’s earnings could rise to $1.57 per share in 2022, up from $1.11 in 2021.
Next, we move onto the energy sector with Range Resources (RRC). This company operates in the area of natural gas and oil production in the Appalachian region. The year 2020 was not the best for the oil and gas industry, but Range Resources has shown exemplary resilience. It has realigned its strategies to cope with the economic pressures brought on by the pandemic. For instance, they instituted a zero-premium merger with MRD to diversify its assets and marked a significant reduction in spending, which promoted profitability. Experts predict that if the conditions are satisfactory, the company might even accelerate its expansion this year.
The real estate sector has also borne the blow of the pandemic, with market values dropping significantly. However, even in these bleak times, Pennsylvania Real Estate (PEI) has shown signs of positive growth. Though rents were lowered, it maintained over 90% of its occupancy, which is noteworthy amidst the pandemic. The company is profiting from its strategic locations that promise steady cash flows. Recent signals demonstrate an upward trend, and analysts believe that if PEI manages to navigate through the impending setbacks, the stock has immense growth potential.
In conclusion, these three stocks – Change Healthcare (CHNG), Range Resources (RRC), and Pennsylvania Real Estate (PEI) – show a great deal of promise for investors. They have proven to have critical growth drivers in their respective sectors. However, potential investors should always remember that market predictions are not certainties. They should consider all relevant factors and invest wisely, balancing potential growth with associated risks.