TipRanks
3 stocks of monstrous growth that are ready to increase
What you can do with the industry standard disclaimer, ‘past performance cannot guarantee future returns.’ Should you avoid all the stocks that have grown tremendously in the past few months? Or should you ignore it and focus on actions you value quickly? The experienced investor follows an intelligent path, treating stocks as individuals and evaluating them on a case-by-case basis. Past performance is not a guarantee, but it can be an indicator, especially consistent long-term performance. But this is only part of the growth stock picture. Investors should also look at Wall Street’s opinion – are analysts impressed by the stock? Also, how is the recovery potential? We now have a useful profile for monstrous growth stocks: earnings from gangbusters, buying ratings from the Wall Street analyst corps and a considerable advantage for the coming year. Three stocks in the TipRanks database are signaling all those signs of strong future growth. Here are the details. OptimizeRx Corporation (OPRX) The ongoing health crisis has had a heady impact on our digital world, accelerating the shift to putting records and information online. OptimizeRx operates a digital platform that facilitates communication between the different branches of the healthcare environment – doctors, pharmacies, patients – at the point of care. The value of this service is made clear by the massive earnings of the shares in the last few months: in the past 52 weeks, OPRX’s shares rose 277%. It is not just participation gains that are high. Since 3Q19, the company has reported first-rate revenue gains in all quarters. The most recent, 3Q20, had revenues of US $ 10.52 million, a record for the company. The year-on-year gain was 110%; in the first 9 months of 2020, the company’s revenues were $ 26.9 million – another record, and a 56% increase over the same period in 2019. In other metrics, OptimizeRx reported having $ 12 million in cash at the end quarter, and reported that it had closed two additional business deals in the quarter, bringing the total amount of annualized recurring revenue to $ 21 million. Roth Capital analyst Rick Baldry is impressed by the rapid growth of OprimizeRx and is not afraid to say so. “Given that its RFP pipeline doubled year / year in 3Q20, we believe that OPRX could accelerate organic growth to 100% in 2020 … [We] note that the growth of the OPRX RFP flow may not fully reflect its growth potential in 2021, given the recent machine learning platform extension announcement (and the Komodo Health related data partnership, which tracks 320 million patients annually) was hidden from potential customers while R&D and patents were sought “Baldry opined. Overall, the 5-star analyst summed up:” Given that we expect both material advantages for current predictions, OPRX is our primary choice for 2021 ” In line with these optimistic comments, Baldry evaluates OPRX a Buy, and its target price of $ 70 implies a 77% upside potential for the next 12 months. with Baldry, as shown by Strong Buy’s unanimous consensus rating, based on 3 recent analyst reviews. The shares are selling for $ 39.54, and their average price target of $ 53.33 suggests room for ~ 35% growth this year. (See OPRX stock analysis at TipRanks) The Lovesac Company (LOVE) The following is a furniture company, known for its modular seating systems and ottoman seats. Lovesac offers customers an easily customizable seating arrangement, capable of fitting into any room, home or style – and easily adaptable to the owners’ mood swings. The company was named one of the fastest growing furniture manufacturers in the past decade and reported $ 165.9 million in total revenue for fiscal year 2019. Lovesac’s growing revenues were clear in 3Q20, when the company reported sales growth 43.5% year on year, to US $ 74.7 million. Net income went from a loss of $ 6.7 million in the previous year’s quarter to a profit of $ 2.5 million in the third quarter of this year. Gross margins increased 10% yoy to 55.3%. This strong sales and financial performance generated a 283% share appreciation in the last 52 weeks. Covering LOVE for BTIG, analyst Camilo Lyon says, “LOVE is leveraging the current COVID-19 crisis and working from home, as consumers switch their purchases to home-related products. The company has successfully changed its resources to support online sales, even redistributing its full-time associates to interact with customers online through instant messaging and product demos on social media. ” Lyon believes that the company’s moves are successfully positioning it to thrive in a post-COVID world, shaping “27% annual revenue growth for the next two years as brand recognition grows, new customers come to the brand and new product launches give existing customers more reason to buy the brand. ”To this end, Lyon places a Buy rating on LOVE, while its $ 62 price target implies room for a 26% growth in 2021. (To view Lyon’s history, click here) Overall, there are 4 recent reviews on LOVE and all are purchases, resulting in a strong consensus rating by the strong buying analyst. The appreciation of LOVE’s stock pushed the stock price to close to the average target of $ 56.75, leaving room for a 16% rise from the current trading price of $ 48.88. (See LOVE stock analysis at TipRanks) Kirkland’s (KIRK) The crisis continuous Corona did more than just push white-collar workers into remote office and telework situations. By forcing large numbers of people to stay at home, the pandemic – and the government’s response – has made potential home furniture customers look closely at their accommodation. Lovesac, above, is not the only company that has benefited; Kirkland’s, a diverse decor and furniture retailer with more than 380 stores in 35 states, in addition to a strong online presence, is another r. Kirkland’s, like the other stocks on this list, posted strong earnings growth and stock appreciation last year. The company’s most recent quarterly results for 3Q20 revealed revenue of US $ 146.6 million, slightly above the analyst’s forecast and slightly above year on year. The gains showed a stronger gain. Third quarter earnings per share were 66 cents per share, much better than the 53 percent loss recorded in 3Q19. The appreciation of shares followed these gains, to say the least. KIRK has grown an impressive 1,500% in the last 12 months, a huge gain that reflects the company’s success in adapting to the growing importance of online sales. The strong growth here has attracted the attention of Craig-Hallum analyst Jeremy Hamblin. “[Kirkland’s] continues to fire on all cylinders … Although the company is probably benefiting from some favorable industry winds, it is clear that strategic initiatives to improve margins are sustainable, while investments in an improved e-commerce platform ( up to 50% in the third quarter) should help offset store closures … we … note that KIRK generally has a stronger balance sheet, with better FCF (teenagers) income than its peer group, ” wrote Hamblin. Consequently, Hamblin values KIRK shares as a Buy and sets a price target of $ 32, which implies a 65% year-on-year increase from the $ 19.38 share price. (To view Hamblin’s history, click here) Some actions fly under the radar, and KIRK is one of them. Hamblin’s is the only recent review by analysts at this company, and it is decidedly positive. (See TipRanks KIRK stock analysis) To find good ideas for trading growth stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all TipRanks stock insights. Legal Notice: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investments.