3 monster growth stocks that could hit new highs
Investors have a clear task ahead of them: find the stocks that will rise as a bull market approaches. Past performance is obviously not a guarantee of future profits, but the stocks that have seen rapid growth over the past few months are a logical place to look for tomorrow’s winners. There are concerns, of course, centered around the newly democratically controlled US Senate, which will allow the new Biden administration to implement its tax hike plan, and December’s poor employment figures. Will they team up to derail the strong uptrend in the market? Not so fast, says Jonathan Golub from Credit Suisse. The company’s chief US equity strategist has raised its outlook for year-end 2021 from 4,050 to 4,200. Golub initially points out that the Democratic candidates won both seats in the Georgian Senate in the most recent runoff election, Dem’s effective control – albeit in a tight space – of both houses of Congress. The new Biden administration has pledged to both sign an expanded COVID relief package and reverse President Trump’s policies. Control of Congress is a necessary requirement. Golub said, “This should lead to additional incentives, including expanding payments to individuals.” The second item that Golub identifies as a major support event for the markets is the COVID vaccination program. While describing the slow progress of the program as “overwhelming,” he adds that economic activity will increase as the population of vaccinated people increases. According to Golub, the main economic effect of the lockdown policy is “a likely avalanche of pent-up consumer demand [which] cannot be ignored. “Golub describes this demand as follows:” We are going to have the biggest stimulatory event in the history of the planet in the second half of this year … “The strategist now sees – before the start of the second half – as buying that. And that brings us back to growth stocks. We used TipRanks’ database to identify three exciting growth names according to the analyst community. Any analyst-backed ticker can generate additional profits on top of its already impressive growth. Innovative Industrial Real Estate (IIPR) The increasing normalization of the cannabis industry in the United States has opened up a number of opportunities for future-oriented companies. Innovative industrial real estate is one of them. This company is a real estate investment trust with a twist – it focuses on real estate in the cannabis sector for medical purposes. Like most REITs, IIPR acquires, owns, manages and rents real estate – but its target customer base is made up of experience-licensed medical cannabis operators. The company’s portfolio consists of industrial greenhouses rented as growing facilities for medical cannabis suppliers. The value of this niche results from the share performance. IIPR stocks are up 137% in the past 52 weeks. The financial performance corresponds to the share performance. Revenues have grown steadily over the past two years from the previous quarter, reaching $ 34.33 million in the third quarter of 20, the most recently reported. That was an increase of 197% over the previous year. During the peak of the korona japanik there was a slight decline in earnings in the first and second quarters of 2020, but the company’s EPS in the third quarter reversed that, and 86-cent pressure rose 59% year-over-year. Daniel Santos, an analyst at Piper Sandler, sees the momentum picking up the cannabis industry, especially now that the Senate has shifted to democratic control. “COVID has created its own tailwind as states try to fill budget gaps with alternative tax sources. While this could lead to more liberal licensing, management seemed confident that most states will opt for a limited licensing program and favor existing operators – a big boost for IIPR … strong operator bases and demand from institutional investors could increase Leading pace in acquisitions, “Santos noted. Santos rates IIPR as overweight (ie buy) and its target price of $ 250 implies an uptrend of 40% over the next 12 months. Overall, IIPR has 7 recent ratings broken down to 5 buys and 2 holds, giving the stock a consensus rating for analysts with moderate buys. The stocks have risen rapidly in value recently and are now trading at $ 178.44. (See IIPR stock analysis on TipRanks) Par Technology Corporation (PAR) Par Technology provides support on the hot ellerie and provides software, hardware, support services and other resources. Applications from PAR include point-of-sale software, content management, business intelligence and food Sa. surveillance, sales terminals and video monitors. PAR’s restaurant segment operates in 110 countries with over 100,000 user installations. The company also includes a government services segment that provides computer-aided engineering services and systems design to the federal government. PAR is a major contractor for such services with the Department of Defense. The growth of this company over the past year has been impressive. The 52-week gain is 103%, reflecting the need for strong online support for PAR’s target customer base looking to recover from the COVID downturn. Third quarter 2020 sales rebounded from a slight decline in the first half to hit a two-year high of $ 54.8 million. Among the fans is BTIG analyst Mark Palmer, who wrote, “While we anticipate restaurant and retail sales from PAR, we anticipate that the Brink software business will grow by about 20% each over the next three years. During this period the annual growth is recorded in the context of 40%. As PAR makes the transition to a cloud software / SaaS mode, its valuation will grow should it grow to better reflect the recurring nature of subscription-based revenues and the margins associated with software offerings. In line with his comments, the 5-star analyst rates PAR a Buy along with a price target of $ 80. That number shows his confidence in the stock’s 29% upside move for a year. (To view Palmer’s track record, click here.) PAR has strong support from the rest of the street. Aside from a single hold, all 4 other analysts who posted a rating in the past 3 months recommend PAR stock as a buy. (See PAR stock analysis on TipRanks) Maxlinear, Inc. (MXL) The semiconductor sector is an important industry, and Maxlinear makes chips for a variety of roles: wireless and data center infrastructure, industrial connectivity and IoT apps, cable broadband, and WiFi 6 Networking. Maxlinear products can be found in digital televisions, mobile devices, personal computers and netbooks. Semiconductors have suffered a rift in the past few months and the MXL inventory is no exception. Stocks are up 81% since that time last January, and that period included heavy losses in last February and March. The move to remote working and virtual schools has brought fast and reliable connections to the fore, which in turn has increased demand for the underlying chipsets. In the third quarter of 20, Maxlinear revenue increased to $ 156 million, a sequential profit of 140% and a profit of 95% year over year. The company sees stronger demand for broadband and connectivity products starting in Q2 20 as a driver of profits. Suji DeSilva, 5-star analyst at Roth Capital, is downright bullish on this stock, and his comment makes that clear. “We believe that MXL represents a differentiated investment opportunity in broadband and network RF and mixed signal opportunities. We believe MXL sees continued strong demand for connected homes, fueled by ongoing remote working / learning. We expect MXL fundamentals to benefit from the acquisition in FY21, ”said DeSilva. DeSilva has a price target of $ 50 and a buy rating on MXL shares. His goal is an upward trend of 34% for one year. (To see DeSilva’s track record, click here.) All in all, the word on the street at this chipmaker sounds largely bullish. TipRanks Analytics demonstrates MXL as a moderate buy. The stock has registered 7 ratings, with a 5 to 2 split between buy and hold. (See MXL stock analysis on TipRanks.) To find great ideas for trading growth stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.