7investing is thrilled to share our 2023 Year in Review with our subscribers. This report serves as a reliable guide to help our subscribers make prudent investment decisions in 2024 by summarizing the 336 recommendations across 215 different companies 7investing has made since its founding.

Our Year in Review also serves as the launchpad to our new Conviction Rating Review process in 2024. By focusing on the convictions our advisors have in the companies we’ve previously recommended, we help our subscribers better understand our process: not just finding great companies, but finding great companies that we feel strongly are great opportunities to buy now. Each stock has been classified by our team as “Strong Buy” (18% of our active recommendations), “Buy” (71%), “Hold” (8%), or “Potential Sell” (3%). We’ll be continually updating the Conviction Ratings on our Recommendation Page and within our Community Forum, to give you our most up-to-date and actionable ideas at any time of the year.

But our Year in Review is so much more than just a list of companies and a conviction rating. Each company receives:

“In Three Words” – a short, three-word review of what this company brings to the table for investors. Examples include: “Innovative, Computing, Diversified; Global Payments Innovator; Efficient Global Allocator.” These short descriptions allow you to quickly understand the investing potential in a company and decide if you want to read more.

Company Update – a concise but powerful review of how the company performed in 2023 based on qualitative and quantitative analysis. Is it living up to its investing thesis? What is its outlook for the next year. The Year in Review answers questions like these.

Conviction Rating – Strong Buy, Buy, Hold, Potential Sell. These give our subscribers actionable insights into what our team thinks are the strongest opportunities on the 7investing scorecard today.

To illustrate how this works in practice, here is our review of Rocket Lab (NASDAQ: RKLB) from this year’s report:

Rocket Lab (NASDAQ: RKLB)

Coverage: Simon Erickson

Rocket Lab in Three Words: Disruptive, Holistic, Efficient

The space economy is taking off, and Rocket Lab is bringing commercial enterprises into orbit. Its reusable rockets are launching smaller satellite payloads from its New Zealand and Virginia-based launch pads, and they’re serving the smaller customers who have historically been ignored by SpaceX’s ridesharing option. By focusing on the underserved minority of the market and with a relentless focus on sticking to schedule, Rocket Lab is quickly gaining popularity as the disruptor of the space launch market.

But Rocket Lab has even higher-altitude ambitions of becoming an end-to-end space company. Rather than just providing the cutting-edge rockets used for launch, it now also offers satellites and components that businesses couldn’t otherwise make themselves — which has been possible through its acquisitions of SolAero for solar power, Advanced Solutions for navigation, and Planetary Systems for separations systems. This is unlocking an entirely new, $300 billion “space applications” market, where Rocket Lab can manage all of the infrastructure and customers just pay a predictable monthly fee to keep everything operational.

The approach is working. Rocket Lab is winning larger deals, getting more revenue per launch, and now collecting more revenue once the satellites are in orbit. This year included four upcoming launches for the Department of Defense (in support of its HASTE program), two more missions with NASA (TROPICS storm monitoring), and two more missions with Black Sky (logistics imagery). For the first time, it also reused one of the engines that it recovered in the ocean; which is a great validation that its Rutherford rockets are indeed salvageable and reusable.

One other first this year was that Rocket Lab accidentally blew up its first customer satellite in September in a failed mission for Capella. The company put all launches on hold while it conducted a detailed investigation, but ultimately found the root cause of the anomaly and resumed launches again in November. It was a difficult situation to be in; yet Rocket Lab handled it professionally and doesn’t appear to have lost any credibility with customers.

Many believe the commercial space economy will become a trillion-dollar industry by the year 2040, primarily driven by satellite-based broadband internet. Rocket Lab’s visionary founder and CEO Peter Beck has publicly stated that he could grow Rocket Lab’s revenue 22-fold within six years, from $69 million in 2021 to more than $1.5 billion by 2027.

While that might sound like an out-of-this-world forecast, the company’s culture actually is built around “doing what it says it’s going to do.” There’s a lot of anticipation for Rocket Lab’s new 8-ton Neutron rocket, which will place entire commercial satellite constellations into orbit beginning in 2024 and be the catalyst to drive future profitability.

Keep your eyes on the skies. This is a high-risk/high-reward moonshot that needs to be on your investing radar.

Recent Price: $4.61

Current Conviction Rating: Strong Buy

Our Year in Review is the result of hard work from our advisor team, past and present. It stands as a testament to the dedication put into creating one of the most comprehensive investment research articles of the year. Simply put, the 2023 Year in Review is a powerful tool for any investor to optimize their portfolio heading into 2024.

Subscribers, without further ado, here is our complete 2023 Year in Review.

If you are not a subscriber and wish to see the full report, we encourage you to subscribe today.

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