10 Stocks Jim Cramer Believes Will Soar

6. UL Solutions Inc. (NYSE:ULS)

Number of Hedge Fund Investors: 30

Jim Cramer highlights UL Solutions Inc. (NYSE:ULS), a company that tests consumer electronics and other products. UL Solutions Inc. (NYSE:ULS) is a for-profit spin-off from the nonprofit UL Standards and Engagement, known for its Underwriters Laboratories. Cramer has been impressed by CEO Jennifer Scanlon, who presented a strong case for UL Solutions Inc. (NYSE:ULS) on his show.

“Number six is UL Solutions, which helps test consumer electronics and other products. Now, this is basically a for-profit spin from a nonprofit entity, UL Standards and Engagement. Remember Underwriters Laboratories? They still control the business through a separate class of stock, but it’s a nice little business, and I’ve been impressed by CEO Jennifer Scanlon. She told a very compelling story when she came on the show. At this point, UL Solutions is the best performer in the top 10, up 96% from where it came public, up 60% from its first trade. We featured it twice. I bet it’s not done.”

UL Solutions Inc. (NYSE:ULS) is well-known for its rigorous standards and comprehensive services, earning it a trusted reputation in the industry. As safety regulations and standards become stricter across industries such as consumer electronics, automotive, and industrial sectors, the demand for UL Solutions Inc. (NYSE:ULS)’s certification and testing services is expected to rise. UL Solutions Inc. (NYSE:ULS)’s broad range of services, including product testing, certification, and advisory roles, allows it to meet the diverse needs of various sectors effectively.

Conestoga Capital Advisors stated the following regarding UL Solutions Inc. (NYSE:ULS) in its Q2 2024 investor letter:

“UL Solutions Inc. (NYSE:ULS): Based in Northbrook, IL, UL Solutions is a leading global business services company focused on independent testing, inspection and certification. For Conestoga, ULS is one of the very few initial public offerings we have participated in but the strong brand recognition, strong business model and operating history made it a fit for the Conestoga small cap portfolio. The company has historically grown revenues between 6%-8%, and we believe ULS has attractive margins and free cash flow.”