Cellebrite

What it does: Cellebrite is a software-as-a-service enterprise specialising in digital forensics and encrypted data extraction.

By Zaven Boyrazian. In the world of law enforcement and cybersecurity, digital evidence has become a critical. In fact, an estimated 90% of reported crime today has some form of digital element. And with most criminal devices being locked or encrypted, demand for Cellebrite’s (NASDAQ:CLBT) C2C platform has surged.

The platform offers solutions for digital forensics, case & evidence management, and AI-powered analytics. And it is the global standard for extracting evidence from encrypted mobile phones, combating terrorism, fraud, human trafficking, and organised crime.

Revenue has been expanding at a 20% annualised rate over the last five years, with operating profits surging by an average of 44% annually on the back of rapidly expanding margins thanks to the increasingly lucrative opportunities within the digital forensics market.

Of course, such explosive returns invite challenge. And fierce competition is forcing Cellebrite to allocate considerable funds to research & development. If it can’t out-innovate its rivals, the group’s leading position could become compromised.

Nevertheless, given the explosive opportunity and long track record of defying expectations, this is a risk I’m willing to take.

Zaven Boyrazian owns shares in Cellebrite.

Devon Energy

What it does: Devon Energy is an oil and gas producer in the U.S. with a diversified multi-basin portfolio, including in the Delaware Basin.

By Andrew Mackie. I have been looking for an opportunity to enter the pure-play exploration space for some time. With the recent tariff-induced sell-off I took the opportunity to buy my favoured pick Devon Energy (NYSE: DVN).

Unlike oil majors such as BP and Shell, earnings come purely from oil and gas production. The company is effectively a leveraged play on such prices. Unsurprisingly, as prices have fallen for some time, so too as the share price. However, I remain extremely bullish on prices over the next decade plus.

In the short to medium term, I expect natural gas demand to rise significantly off the back of data centre growth. The recent conversion of a decommissioned coal-fired to natural gas power plant in Homer, Pennsylvania, provides a good illustration of demand growth. Unlike nuclear, gas fired power stations can come online very quickly.

Should the US enter a recession in 2025, then oil prices will undoubtedly fall even more, impacting Devon’s profitability. However, with globalisation unwinding, defence spending increasing and the US boosting domestic manufacturing, I expect hydrocarbon demand to remain buoyant well into the future.

Andrew Mackie owns shares in Devon Energy, BP and Shell.

Nu Holdings

What it does: Nu Holdings owns Nubank, which is Latin America’s largest digital bank.

By Ben McPoland. I recently added to my position in Nu Holdings (NYSE: NU). The Brazil-based digital bank ended the first quarter with nearly 119m customers, 19% more than the year before.

Incredibly, 59% of Brazil’s adult population are now customers, while strong growth continued in Mexico (12% of the adult population) and Colombia (8%). Quarterly revenue jumped 40% to $3.2bn on a currency-neutral basis, while adjusted net income rose 37% to $606.5m.

There were some negative currency swings in the quarter, which could continue. Also, the bank’s risk-adjusted net interest margin fell to 8.2%, down from 9.5%. This was largely due to aggressive expansion in Mexico and Colombia, which involves offering higher deposit rates to attract users. So the quarter wasn’t totally flawless.

Nevertheless, I’m very impressed with the way Nu continues to grow at scale. The neobank is barely scratching the surface when it comes to monetising its vast – and growing – base of customers.

The stock isn’t cheap, but the company appears to have a long runway of growth ahead of it, with large swathes of Latin America still either unbanked or underbanked.

Ben McPoland owns shares of Nu Holdings.

RWE

What it does: RWE AG is a leading German energy company focused on renewables, power generation, and trading.

By Mark Hartley. I recently invested in RWE (FRA: RWE) due to its strong financial performance and strategic plans for 2025. Last year, it reported an adjusted EBITDA of €5.7bn and adjusted net income of €2.3bn, surpassing expectations. The energy supplier also announced a €1.5bn share buyback program, reflecting a commitment to shareholder returns.

However, it faces some uncertainties in the US offshore wind market following revised policies that could affect renewable energy. As a result, it recently reduced its five-year investment outlook by €10bn, indicating caution amid these market challenges. This could impact future growth and returns, so I hope the US sees the advantages in renewables and reconsiders its policies.

Despite these risks, I remain optimistic about RWE’s focus on renewables and look forward to seeing it drive innovation in the sector. It also has a decent 3.42% yield and a P/E ratio of 4.65.

Mark Hartley owns shares in RWE.

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