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3 monster growth stocks that could reach new heights
Every investor knows that you can’t think of a stock’s past performance as a predictor of future earnings. It has even become an axiom, one of the common phrases we all learn in Econ 101: “Past performance is no guarantee of future returns” is a common formulation. But this simple sentence, while true, raises a difficult question: How should an investor judge a stock? The truth is, the past is a prologue, not a prophet, and investors can profit by taking past performance as one of the many factors in valuing a stock. There is no sure path to success here, and each action should be viewed as a unique individual – which makes past performance a useful indicator, if not the only one. Investors should also seek the Wall Street perspective – are analysts impressed with the stock? And on top of that, what does the upside potential look like? Now we have a useful profile for monster growth stocks: gangbuster gains, Wall Street analyst body buy ratings, and a massive rise for the year ahead. Three stocks in the TipRanks database all signal these signs of strong growth over time. Here are the details. Amyris, Inc. (AMRS) Say “biotechnology”, and most people will assume you mean pharmaceuticals. But Amyris puts a different spin on the biotech industry. The company is focused on the development of synthetic alternatives for common petroleum, plant and animal products. Amyris operates three development divisions for cosmetics, health and wellness, and food flavorings, which are offered to the public through three direct-to-consumer brands: Pipette, Biossance and Purecane. AMRS shares have recently experienced rapid growth, taking off in the past six months. Meanwhile, the company’s shares rose 786%, which is impressive in every way. The company’s growth has accelerated in recent months, and a review of the recent 4Q20 earnings report will provide some reasons for this. The fourth quarter marked the third consecutive quarter of record product sales. The company reported total revenue of $ 80 million, more than double the previous quarter’s profit. Of that total, the $ 35 million in revenue generated increased 71% year over year. The company also saw a significant year-over-year increase in gross margins, from 56% to 66%. The increase in sales resulted in annual revenues of $ 173 million, a 13% year-over-year gain. Looking ahead to the end of 2021, the company is moving towards a continued increase in product sales, leading to total revenue of nearly $ 400 million in a full year, well above the consensus forecast. of $ 231 million. Covering this title for Roth Capital, 5-star analyst Craig Irwin notes the company’s forecast and recent growth. Irwin also points out that Amyris is well positioned to keep up his hectic pace. “Long-term growth is supported by a solid pipeline of new molecules in development with strategic partners. With all 13 ingredients on the market and 18 in active development, we anticipate continued expansion of the portfolio as they hit the market through 2025. Mgmt plans to add 8-10 additional ingredients to the active development pipeline in 2021, maintaining a broad channel to expand the long-term potential of products and ingredients, ”said Irwin. Unsurprisingly, Irwin rates AMRS as a buy, and his price target of $ 33 implies upside potential of 59% over the next 12 months. (To see Irwin’s track record, click here) Rapid growth will always draw Wall Street analysts to an innovator. Amyris has garnered 4 recent purchase reviews, all merged into a Strong Buy consensus rating. AMRS has a share price of $ 20.65, and even after its recent appreciation, the average price target of $ 25.50 still suggests a 23% year-over-year increase. (See AMRS stock market analysis on TipRanks) Clean Energy Fuels (CLNE) The next growth stock we’re looking at is in the renewable fuels industry. It is a sector which develops partly on the political stamp – renewables are an “in” thing – and partly on the strength of the economic model. Clean Energy produces renewable natural gas (RNG) for transportation. The company’s petroleum products are marketed to transit and transport customers; Clean Energy customers include Estes Express Lines, UPS and the New York MTA. In early February, Clean Energy announced a major multi-year contract to supply the LA County Metro network – the largest bus fleet in the United States – with 47.5 million gallons of RNG. The deal is part of a shift from the Los Angeles subway to low-carbon fuels. Clean Energy has been allocated three refueling depots over five years, with an option to extend the contract for another three years. This is in addition to the five clean energy refueling depots already operated for Metro. The LA Metro news came out after CLNE stocks showed explosive recent growth, part of a general trajectory that has seen the stock rise 492% in the past 6 months. This increase coincided with several other recent contracts, totaling more than 58 million gallons of RNG. Customers include Pacific Green Trucking and Waste Connections. Eric Stine, Craig-Hallum analyst, rated 5 stars at TipRanks, writes of Clean Energy: “We believe it is becoming increasingly clear that natural gas (and RNG) will be an essential fuel in the framework. decarbonization of transport. with the initial deployment of Amazon an exclamation mark. With the dominant position of the CLNE and the RNG plans, the significant financial impact of the RNG which is amplified by the increased contribution of the low CI RNG and the larger footprint of the station, we see the CLNE as an ideal investment in natural gas and also note that it is. a few outright investments in renewable natural gas. In light of his bullish comments, Stine places a buy note and a price target of $ 25 on CLNE. Its target indicates confidence in 68% growth for the coming year. (To view Stine’s track record, click here) Overall, Wall Street analysts are bullish that this stock’s ability to continue to melt to new highs. The CLNE Strong Buy consensus rating is based on 3 purchases and 1 hold. It doesn’t hurt that his average price target of $ 23 places the potential year-over-year rise at ~ 55%. (See CLNE stock market analysis on TipRanks) Aemetis (AMTX) Aemetis is another company specializing in renewable fuels. Aemetis’ main products are ethanol and biodiesel, as well as glycerin, an important industrial chemical. The company is not, however, based on a single sector and has a large production portfolio which also includes distillery grains, edible oils, palm olein and other food products. Aemetis markets heavily in the Indian food sector and in the California Central Valley. Aemetis shares have shown robust recent growth, with a net gain of 736% year-to-date. A significant portion of that gain came after the company announced that it would start a “Carbon Zero” plant to produce renewable fuels for trucks and planes, with a capacity of 23 million gallons per year. The company also released a five-year growth plan targeting total revenue of $ 1 billion by 2025. Aemetis released 4Q20 results earlier this month, and despite losses of a year over year, the company has been able to turn results in a positive light. The report notes that although 2020 was marked by severe disruptions in demand, revenues from ethanol and fuel-grade alcohols amounted to $ 112 million, just $ 3 million lower than the year. previous. Amit Dayal, ranked No.9 overall for Wall Street analysts, takes note of all of this in his recent coverage of AMTX. “We believe the company is emerging as one of the leaders in implementing a zero to negative carbon intensity (CI) strategy to bring renewable fuels to market that should support a profile higher margin compared to its competitors. We also believe that the company has programmed these initiatives well in a very supportive federal regulatory environment, thus improving the chances of success, ”wrote Dayal. To that end, Dayal sets a price target of $ 28 on the stock, supporting its buy rating and suggesting growth potential of 34% year-on-year. (To see Dayal’s record, click here) AMTX stocks have managed to go under the radar so far and have garnered only 2 recent reviews. Both agree, however, that this stock is a buy proposition. The shares are priced at $ 20.83, with an average target of $ 26.50 which indicates a margin for growth of 27% by the end of the year. (See AMTX Stock Market Analysis on TipRanks) To find great ideas for growth stocks that trade at attractive valuations, visit Top Stocks to Buy from TipRanks, a newly launched tool that brings together all the information about stocks from TipRanks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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