Please ensure Javascript is enabled for purposes of website accessibility

The One Trend to Buy in 2024

It may not be capturing headlines, but better productivity is having a major impact on bottom lines, may help us avoid a recession, and is a key driver of recent stock market gains.

Sparklers and Champagne Glasses

I’d be willing to wager that if your average CEO could have any item on his or her wishlist it’d be improved productivity.

Better productivity means doing more with less.

More outputs with fewer inputs.

More revenues with fewer costs.

In other words, more profits without hiring a bunch of new employees.

And we may just be entering a new era of labor productivity.

It’s one of the leading reasons we may be able to tamp down inflation without facing a recession.

It’s also one of the trends that has helped drive the indexes to record highs.

A productivity boom led by technological innovation is why economist Ed Yardeni recently assigned a 60% probability (his base case) to a “Roaring 2020s” scenario for the economy.

In this scenario, investors do “very well,” according to Yardeni.

Bottom line: if you’re looking for one of the most powerful stock market trends right now, look no further than technologies that are helping to boost worker productivity.

How Today’s Biggest Companies Boost Productivity

One of the ways companies increase productivity and get more out of their workforce – not to mention the partners they work with – is by using technology to teach new skills.

This technology is often called a Learning Management System (LMS).

An LMS can be a win-win.

The organization does better. Workers position themselves to earn more money.

They also sleep better knowing they’re unlikely to get replaced by the robots and faceless AI programs tapping their stagnant co-workers on the shoulder.

The rub is that teaching new skills isn’t always that easy.

In addition to requiring some motivation and sticktoitiveness on the part of the learner, a good LMS requires pretty advanced underlying technology.

It needs to be continuously learning itself, without workers spending a ton of time feeding in information that soon becomes obsolete. Otherwise, it’s just teaching outdated content.

Basically, the same thing that’s in those discarded textbooks at the recycling center.

This is where technologies like artificial intelligence (AI) come in. AI is helping modern learning software capture organizational knowledge and turn it into new content and learning methods.

That’s helping to boost productivity in some of the biggest companies out there.

In short, if you’re interested in technologies helping to fuel productivity take a look at companies with cutting-edge Learning Management Systems.

My Favorite LMS Stock Right Now

We’re all familiar with Samsung, the massive South Korean conglomerate.

Not long ago the company wanted to give in-store salespeople a learning tool that would act like a social platform.

It had to work on mobile devices. The idea is that it would help them keep in touch, tap into current product information, and host learner-generated content.

Not mind-blowing stuff, but super helpful for customer-facing workers who need highly relevant and timely information on the products they’re selling.

The company implemented an LMS solution from a company I recently recommended to Cabot Small-Cap Confidential subscribers.

And Samsung isn’t alone. This company also counts massive companies Amazon Web Services, Thomson Reuters (TRI) and Zoom (ZM) as customers.

I just added this stock to our portfolio and it’s already showing gains. At a super high level, it sells enterprise software on a cloud subscription model – like Microsoft Office.

The company has a market cap under $2 billion, is growing revenue north of 20% and throws off a ton of cash relative to its size.

Moreover, I rarely see this stock in the media, despite impressive growth and achievements.

I think that’s about to change.

Tyler Laundon is chief analyst of the limited-subscription advisory, Cabot Small-Cap Confidential and grand slam advisory Cabot Early Opportunities. He has spent his entire career managing, consulting and analyzing start-up and small-cap companies. His hands-on experience has taught Tyler that the development of a superior business model is the biggest factor in determining a company’s long-term success. Accordingly, his research focuses on assessing the viability of management’s growth strategies, trends in addressable markets and achievement of major developmental milestones.