#7 - Ouster (NYSE:OUST)
Ouster Inc. (NYSE: OUST) is one of the leading providers of digital LiDAR technology, which is essential to autonomous driving technology. The company has partnerships with China’s Waymo, General Motors (which uses the technology in its Cruise division), and Motional (which is currently deploying Ouster’s technology in its robotaxis on the Las Vegas Strip).
Investing in OUST stock may also be a shrewd play in 2025 because of its small-cap status. The long-awaited rally in small-cap stocks is underway, and this segment of the market is likely to show big gains.
Ouster is showing strong top-line growth, including a record $28 million in the quarter ending September 30, 2024. And investors have been buying into that growth. OUST stock is up 26% in 2024 and over 64% in the last 12 months. The company is not yet profitable, but it has achieved its goal of gross margin between 35% to 40%. It has no debt and $154 million in cash and cash equivalents.
About Ouster
Ouster, Inc provides lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries in Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Its products include high-resolution scanning and solid-state digital lidar sensors, analog lidar sensors, and software solutions.
Read More - Current Price
- $12.60
- Consensus Rating
- Buy
- Ratings Breakdown
- 6 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $13.17 (4.5% Upside)
Autonomous driving technology is advancing at a rapid pace and industry advocates are highlighting its potential to greatly reduce accidents resulting from distracted driving.
However, you should only invest capital in this space with your eyes wide open.
This is still an industry that will be subject to significant regulatory scrutiny. Even if the Trump administration successfully creates a federal regulatory framework, it will still be years—and maybe decades—before AVs are a significant part of the U.S. transportation network. There are only 19 states with AV statutes in place; another 12 states have them, but only in regards to a piloting or testing framework.
And even as that changes, there will be winners and losers among AV stocks along the way. Nevertheless, if you're an investor with a long-term outlook and speculative cash to put in the market, AV stocks may reap significant profits.
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