Our Long Idea this week features a rather unknown stock in an overlooked corner of the technology sector, where we see strong growth, market share expansion, long-term demand and major profit potential – all while making the world safer.

And, let’s face it. We need a safer world more than ever these days…

In any market, it’s very difficult to find good companies making money by making the world safer. In the current market, finding any good companies that are also good stocks is nearly impossible.

That’s why we built the first-ever AI agent for Investing – that investors can trust – because we trained it exclusively on proven-superior fundamental data and a proven alpha-generating ontology. Our Robo-Analyst technology allows us to uncover compelling investment opportunities in any kind of market.

This week’s Long Idea is an excellent example. This company is creating real value for its customers, vendors, and its shareholders. We love to see companies create value for all stakeholders! We believe companies focused on creating value for all stakeholders will create the most value for shareholders.

Below, we present a large excerpt from our latest Long Idea report published this week, available to Pro and Institutional members. You can buy the full report a la carte here.

We’re not giving you the ticker for this pick, but we are happy to share our hard work because we want you to see how good our research is.

This stock offers favorable Risk/Reward based on the company’s:

  • #1 market share in quickly growing markets,
  • expansion into new markets with large OEM deals,
  • growing subscriber count,
  • best in class profitability and top-tier balance sheet,
  • attractiveness as an acquisition target, and
  • cheap stock valuation.

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Long-Term Demand Drivers of Growth

Research and Markets forecasts that this market will grow 15% compounded annually between 2024 and 2032. Rising demand for more safety and protection of property are the key drivers of this growth.

We think these sources of demand will remain in place and drive growth for many years to come:

  1. consumer demand for safety, convenience, and efficiency;
  2. OEM adoption of this nascent technology; and
  3. the increasing reliance on data-driven navigation, diagnostics, and safety systems.

Technological progress is also wind in the sails of this market as advances in the internet of things (IoT), AI, and cloud computing increase use cases beyond basic GPS and into predictive maintenance, usage-based insurance, fleet optimization, and real-time safety features.

Figure 1: Target Market Growth Forecast: 2024 – 2032

Sources: Research and Markets

Multiple Buyers Support This Business Model

Consumers want to ensure their property is safe and can be recovered in the event of a theft. Lenders want to ensure loan collateral is not lost, while insurance providers want to reduce the likelihood of a claim for lost property.

Accordingly, this company holds strategic partnerships with lenders and insurers alike. In Israel (52% of revenue in 2024), insurance companies encourage and, in some cases, require customers to subscribe to its services for mid-to-high end vehicles. Additionally, they provide insurance premium discounts to customers that subscribe. In Brazil (25% of revenue in 2024), insurance companies directly lease their products and require their customers to subscribe to this company’s services.

With demand driven by both consumers and other stakeholders, the company has steadily grown its subscriptions base 11% compounded annually since 2015, from 948,000 in 2015 to 2.5 million at the end of 2Q25.

Importantly, these subscribers are quite sticky as well. The company notes in its 20-F that “assuming no additional growth in our subscriber base and based on our historical average churn rates of 3% per month in this segment, we can anticipate that at least 90% of our subscription fees generated in a prior quarter will recur in the following quarter.”

Figure 2: Total Number of Subscribers: 2015 – TTM ended 2Q25

Sources: New Constructs, LLC and company filings

…there’s much more in the full report. You can buy the report a la carte here.

Or, become a Professional or Institutional member – they get all Long Idea reports.

I’ll keep sending information on quality sectors, industries, or specific companies until you’re ready to start your membership, but know that we expect this pick to outperform.

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