Stocks like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) inspire investors to hold onto stocks for the long term. Investors who bought and held shares in the late 1990s or early 2000s saw their wealth increase significantly. Many stocks soared during the pandemic and reinvigorated investors aiming for high-performing stocks with immense long-term potential. This has led to the rise of high growth stocks.
Many tech stocks have come back to life in 2023. Some investors may feel as if they have missed out on the rally, but some stocks are in better positions than others. While some growth stocks have become overvalued in recent months, there are still plenty of stocks with upside potential. These three stocks look like compelling long-term stocks that can triple from here.
UFP Technologies (UFPT)
UFP Technologies (NASDAQ:UFPT) designs medical products, subassemblies, and packaging. Many medical devices rely on UFP Technologies’ components to function properly. The company also serves clients in additional verticals, such as aerospace, defense, automotive, electronics, and industrial.
In the Q1 press release, the company reported 37.2% year-over-year revenue growth. Revenue from the company’s largest segment — the medical market — jumped 59.5% year-over-year. The total revenue from the medical market made up 85.7% of the company’s business.
In Q1 2022, the medical market segment generated $52.6 million, compared to Q1 2022 revenue of $71.2 million. In that quarter, the largest segment of the business made up 73.9% of the company’s revenue.
Since the fastest-growing segment now makes up a higher percentage of the company’s revenue gains, UFP Technologies is in a position to grow faster and reward long-term investors. The company also doubled its net income year-over-year, going from $4.9 million in Q1 2022 to $9.7 million.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) has been one of the big winners of the artificial intelligence boom. The company has actually been a winner long before Nvidia’s (NASDAQ:NVDA) strong earnings report started the AI rally. SMCI gains have exceeded 1,000% over the past five years, and despite those gains, the stock still carries a reasonable 25 P/E ratio.
The company has over 20 years of hardware design experience, and its high-performance server and storage solutions are in high demand for AI tools. Super Micro Computer is a leading supplier of AI on-prem infrastructure and can support large AI clusters.
Super Micro Computer didn’t report the best earnings in the most recent quarter. Although net income went up by double-digits, revenue declined by 5% year-over-year. However, it’s similar to how Nvidia reported higher net income and lower revenue in their earnings report that kicked off the AI boom.
Super Micro Computer doesn’t have to create innovative AI to triple from here. The growth stock benefits from other companies pursuing artificial intelligence. Super Micro Computer is the equivalent of someone selling shovels during a gold rush. Astonishing momentum for the stock, strong fundamentals, and plenty of runway can support this stock tripling in the next few years.
Bill Holdings (BILL)
Bill Holdings (NASDAQ:BILL) was a pandemic-darling stock that soared over 750% from mid-December 2019 to its November 2021 peak. The stock is down by over 60% from its all-time high but presents a buying opportunity for new investors.
Bill Holding’s software helps small businesses manage the backend of their finances. The corporation has a $12 billion market cap and tremendous revenue growth. Bill Holdings grew its revenue by 63% year-over-year in the most recent quarter.
Unlike the other two high-growth stocks on this list, Bill Holdings is not yet profitable. However, the company has made strides in this area and reported exceptional progress in the recent quarter. Net losses went from $83.7 million in Q3 of Fiscal 2022 to $31.1 million in Q3 of Fiscal 2023.
Although those numbers still don’t indicate profits, a closing gap, and strong revenue growth can support share appreciation. The company offered guidance for $277-$280 million in revenue next quarter. That’s 38% year-over-year revenue growth on the low-end and 40% year-over-year revenue growth on the high end. Bill Holdings already has momentum going for it, but continued revenue growth and a switch to profitability can send shares soaring over the next few years.
On this date of publication, Marc Guberti held long positions in UFPT and SMCI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
