8 High-Risk Stocks to Buy That Are Worth Taking a Chance On


high-risk stocks - 8 High-Risk Stocks to Buy That Are Worth Taking a Chance On

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Sometimes, a risky stock just isn’t worth the trouble. But for this article, when I say high-risk stocks, I’m implying that these are high-reward stocks as well. There’s no point adding to your risk profile if there isn’t the possibility of realizing outsized gains.

The stocks here are mostly established players that have built solid businesses in strong growth sectors. As business revives, these stocks will stand out in their sectors.

Remember, smaller companies grow faster in high-growth markets and they’re less affected by inflation, since they’re building off the success of a very specific product line. They’re too small (or too focused) to diversify, which is a good thing.

There’s an old saying that he or she who travels alone, travels fastest. This works in the markets too, particularly for the high-risk stocks below.

Some of these high-risk stocks to buy started their run during the pandemic. But as the pandemic fades, they’re proving their worth in the next round of economic growth.

  • Aviat Networks (NASDAQ:AVNW)
  • AcuityAds Holdings (NASDAQ:ATY)
  • Fulgent Genetics (NASDAQ:FLGT)
  • Kirkland’s (NASDAQ:KIRK)
  • Big 5 Sporting Goods (NASDAQ:BGFV)
  • Express (NYSE:EXPR)
  • At Home Group (NYSE:HOME)

High-Risk Stocks to Buy: Aviat Networks (AVNW)

5G digital hologram floating over a phone on a city background. representing 5g stocks investing for the next decade

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We have heard a lot about 5G, the next generation of telecommunications that is going to take mobile communications up another level. It will be a significant step forward for moving data through wireless networks.

Already, wireless carriers are talking about offering wireless WiFi for home networks that would compete with speeds that copper and fiber optic cables deliver.

AVNW builds and sells the equipment to the telecom providers to make 5G happen. And 6G is already becoming a thing. In this sector, with a $1 trillion-plus infrastructure deal working through Congress, AVNW is one high-risk stock that has lots of reward in its sights.

Up 135% year to date, it’s still selling at a trailing price/earnings ratio below 8, with a market capitalization near $450 million.

This stock has a Portfolio Grader “A” rating.

AcuityAds Holdings (ATY)

Close up hand holding mobile with Digital Advertising and icons, Digital Marketing concept.

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One thing about the digital advertising space is, it’s easy for companies – especially small- and mid-sized firms – to get lost in production as well as distribution issues.

ATY built a platform – Illumin — that’s a self-serve advertising solution, so companies can build their ads, deploy them and then analyze results from multi-channel campaigns. It can also help clients manage their digital strategy.

While digital advertising isn’t new, building wholistic platforms like Illumin is the next step in allowing users a better experience in developing and deploying brand messaging and getting actionable results.

The stock soared in 2020, and is now consolidating, off 16% year to date. With a market cap of $570 million, it’s an acquisition target or it can move to the next level on its own.

This stock has a Portfolio Grader “A” rating.

High-Risk Stocks to Buy: Fulgent Genetics (FLGT)

a visualization of DNA in a vial

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One of the biggest megatrends going today is the advancement of genetics in our science and in applications. The first Covid-19 vaccines to market were mRNA vaccines, that worked with the bodies’ messenger RNA (which carries copies of our genetic code to build DNA) to boost immunity using our bodies’ natural pathways.

And genetic screening has moved from specialized research facilities to being broadly available to patients at every level. Now people can be screened for hereditary genetic issues before they develop, or before getting pregnant.

FLGT is a leader in genetics testing and is one of the high-risk stocks that actually mitigates risks as its fundamental goal as a business.

It has a $2 billion-plus market cap, yet trades at a trailing P/E of 5, even after a 48% gain year to date.

This stock has a Portfolio Grader “A” rating.

Zedge (ZDGE)

A photo of a smarphone showing the Zedge (ZDGE) app.

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Personalization is at the heart of how consumers manage their purchases, from cars, to homes, to mobile phones. We want devices and our things to reflect who we are, as an extension of our identity.

And that’s precisely what ZDGE does for mobile phones. It has an app appropriately named Zedge that allows users to personalize a lot of their phone features – ring tones, wallpaper, app icons, etc.

This is a dynamic space, which is what puts ZDGE in the high-risk stocks camp. But it’s been around since 2008, so it has survived some tough times and has prevailed. The stock is up 215% year to date, but only has a $270 million market cap. Don’t chase it too far and be prepared for volatility.

This stock has a Portfolio Grader “A” rating.

High-Risk Stocks to Buy: Kirkland’s (KIRK)

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After sitting around the house for nearly a year, most people have become a bit tired of their surroundings. For many, that has meant heading to the great outdoors to blow off some steam.

But now that the pandemic restrictions are lifting, many people are once again venturing out to retailers. And one sector that’s coming back fast is home furnishings retailers. People are ready for a change and the best place to start is at home.

And given the fact that KIRK has nearly 375 stores in 35 states, a lot of consumers are headed to KIRK’s stores. For its market penetration, it’s surprising KIRK only has a market cap of $320 million. It resides with the high-risk stocks group because it’s smaller than many of its national rivals. But its performance continues to outpace many of its competitors.

The stock is up 26% year to date yet is only trading at a P/E of 13. This trend has just begun.

This stock has a Portfolio Grader “A” rating.

Big Five Sporting Goods (BGFV)

A photo of the exterior of a Big 5 Sporting Goods store in Redwood City, California.

Source: Michael Vi/ShutterStock.com

During the pandemic, it was either sit inside or do something outside. That definitely helped BGFV keep chugging along. It has more than 400 sporting goods stores in the West and Southwest.

And now that team sports are opening back up, demand is even greater. Kids grow out of uniforms and shoes, adults are getting off the couch and back out on the sporting fields. Plus, the summer holidays are here and there’s plenty of gear that goes along with vacations.

Like KIRK, BGFV is one of our high-risk stocks simply because its $562 million market cap is much smaller than its national rivals. But its performance is stellar and will continue to post strong numbers. Also, management has proven it knows what to do with success.

The stock is up 147% year to date yet trades at a trailing P/E below 7.

This stock has a Portfolio Grader “A” rating.

High-Risk Stocks to Buy: Express (EXPR)

the storefront of an Express store in a mall

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You may remember EXPR from the 1980’s, when this American fashion retailer had stores at every mall in the U.S. it seemed.

Over the decades, the company has been through a few ownership changes and has struggled at time to remain relevant, especially now as all-digital brands have challenged traditional retailers.

In 2017, EXPR shuttered its Canadian stores. And in late January last year, it closed around 100 U.S. stores. The latter decision worked out well in hindsight, since the company didn’t have to deal with those issues during the pandemic.

But the leaner EXPR can count on more people out and about, shopping for new clothes and seeing what the new styles are.

This is one of the high-risk stocks that’s a comeback story. It’s up more than 400% year to date, but it’s still trying to get it earnings back in the black. With a $308 million market cap, it’s not for the faint of heart.

This stock has a Portfolio Grader “A” rating.

At Home Group (HOME)

A photo of woman working on a computer at a desk in her home.

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If you’re a fan of big-box retailers, then HOME is your place for home furnishings. Stores average 110,000 square feet and have over 50,000 household items for sale.

Founded in Plano, Texas, HOME now has 225 stores in 40 states. That’s about five stores per state, which means HOME targets areas that it knows have the customers it wants within a decent drive. It also has a website where consumers can shop from their homes.

It focuses on consumers who are price conscious but want variety in their options. And that’s a great market right now, as the job markets open up. Redecorating is a powerful force now that the pandemic is waning.

The stock is up 138% year to date, yet HOME still trades at a trailing P/E of 9. It has a $2 billion market cap so it’s one of the more established high-risk stocks here.

This stock has a Portfolio Grader “A” rating.

On the date of publication, Louis Navellier has positions in AVNW, FLGT, and ZDGE in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. 

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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