When thinking about innovative companies that are trying fervently to stay ahead of the competition, research and development (R&D) spending is a key indicator of this ethos. Often quoted as a percentage of revenue, R&D spending is a driving force for many companies, especially those in the technology sector. Without it, businesses will eventually render their products inadequate as the competition provides greater value to their customers.
Strong R&D spending looks even better when combined with a company that is already profitable. It shows that they're able to make money and invest back into the business at the same time. Together, these two factors have a big influence on the long-term success of a business. Below, I’ll share three companies that are achieving both goals. Also, these stocks have seen recent price upticks, showing some momentum at the companies.
