Even though the market for initial public offerings has been light in 2016, we’ve still seen some noteworthy deals. For instance, Acacia Communications, Inc. (NASDAQ:ACIA) and AVX Corporation (NYSE:AVX) — two of the market’s best IPOs this year — have nearly tripled, at 190% and 180%, respectively. Past that, eight offerings have doubled, and 13 returned between 50% and 100%.
But why was 2016’s IPO volume so meager?
Well, the grueling correction during the first year stayed many a hand. Volatile, negative markets are not the right place for a budding publicly traded company. Moreover, the wild presidential race stirred up its own batch of uncertainty.
However, now that we’ve elected a president and things are settling down, we can look to 2017 — and the IPO environment looks awfully promising. Improved clarity on the political landscape and a likelihood of more corporate-friendly taxes should spark bullishness and risk appetite.
The following is a look at the 10 best IPOs that I expect to come to market and thrive in 2017. I look to Ron Heinz, a venture capitalist at Signal Peak Ventures who thinks an IPO should have a clear path to profitability within an 18-month horizon or a dominant market position that is combined with exceptional top-line growth.
Those are great measures, and they guide this list of the best IPOs to buy in 2017: