At the core of every investment, the quest for long-term prosperity remains a constant pursuit. In this dynamic world, three companies are emerging as strategic pioneers. Each is carving a unique path toward sustained growth and profitability. These companies are not merely stocks in a portfolio; they represent the vanguard of rapid innovation and adaptability. They represent growth stocks to buy.
The article delves deep into the strategic blueprints of these market leaders. The first one’s stronghold in aerospace and defense, the second’s calculated bet on China’s semiconductor expansion, and the third one’s diversification and technological innovation—these strategic growth stocks to buy may turn a $10,000 investment into a potential $1 million windfall.
Let’s dive in and explore more about their ability to achieve long-term growth in a world where adaptability and vision are the ultimate currencies.
Growth Stocks to Buy: ATI (ATI)
The American producer of specialty materials ATI (NYSE:ATI) may benefit fundamentally from several key factors. It includes its strong position in the aerospace and defense (A&D) markets, strategic transformation initiatives and financial performance.
To begin with, ATI has a robust presence in the aerospace and defense sectors, which have been consistently performing well. A&D sales have been upward, growing 5% QoQ and a remarkable 39% YoY. The defense sector specifically has shown significant growth. In this context, sales surpassed $100 million in Q2 2023, representing a 7% QoQ and a 25% YoY increase.
One of ATI’s key growth areas is its involvement in advancing hypersonic technologies, which is experiencing accelerating demand. The company’s order backlog has surged by more than 20% YTD, reaching $3.5 billion by the end of June. This strong demand in A&D markets, including materials for military ground vehicles, rotorcraft and naval applications positions ATI for substantial long-term growth.
Moreover, ATI’s percentage of overall revenue attributed to A&D has increased from 46% to 58% in just one year, signaling rapid progress toward its goal of 65% A&D sales. This robust presence in A&D markets is a fundamental driver of the company’s long-term success.
Finally, ATI’s strategic transformation has been yielding significant benefits. In this direction, the HPMC segment has been a standout performer, with sales growing by 12% QoQ and an impressive 33% YoY. This growth has been driven by increasing commercial aerospace production and strong demand in the defense sector. Finally, the strategic expansion of HPMC and its focus on maintaining solid margins may lead to massive changes in its market valuation.
ACM Research (ACMR)
One strategic move that positions ACM Research (NASDAQ:ACMR) for long-term value growth is its foresight regarding the shift in China’s semiconductor manufacturing strategy. The company predicted China would accelerate its capacity expansion in mature nodes despite initial concerns about US-China trade restrictions. This prediction has materialized as China seeks to bridge the substantial gap between its mature nodes’ capacity and market consumption.
ACM Research’s focus on serving this growing market segment is a shrewd decision. By targeting mature nodes in China, the company is tapping into a sector still in the early stages of its expansion. As China intensifies its efforts to boost its domestic semiconductor capabilities, ACM Research is poised to benefit significantly. Based on its differentiated technology and diverse multi-product portfolio, the company has a competitive advantage in catering to this burgeoning market.
Further, ACM Research’s reported growth in its advanced packaging segment is significant. Excluding specific categories, this segment witnessed 14% YoY growth in Q2 2023 and a remarkable 58% growth YTD
Fundamentally, advanced packaging, which includes innovations like 2.5D and 3D packaging, plays a pivotal role. It is driving higher performance for applications such as AI and advanced language models like GPT.
Notably, ACM Research’s robust product offerings in advanced packaging tools, including coater, developer, scrubber, PR stripper, and wet etcher, position it as a key player in this growth segment.
Finally, The company’s unique advantage lies in being the sole provider of a full set of wet and advanced plating tools, solidifying its position in this critical market. If you’re looking for good growth stocks, start here.
Perion Network (PERI)
Perion Network (NASDAQ:PERI) has multiple value growth drivers based on a strategic diversification business model. The approach enables the company to adapt swiftly to shifting advertising budgets while maintaining robust profit margins. For instance, its revenue surged by an impressive 22% YoY (in Q2 2023), with an astounding 45% YoY increase in margins.
By participating in various segments of the industry, including search advertising, video, CTV, retail media and digital advertising as a whole, Perion mitigates risks associated with market fluctuations.
On the other hand, Perion’s retail media business is a stellar example of its innovation and data-driven approach. This segment has grown exponentially, boasting a staggering 63% YoY increase.
What drives this growth is a sophisticated platform that enables large retailers to leverage their data for enhanced sales, customer loyalty, and return on investment (ROI). Specifically, Perion is transforming traditional advertising by replacing outdated circulars with precise digital targeting.
In detail, its fundamental value growth lies in three layers of data: anonymized retail data, third-party enrichment data (demographics, behavior, location, etc.), and their proprietary iHUB data. Technically, these data layers feed into an AI decision-making engine, generating thousands of dynamic creatives. The innovative approach allows Perion to deliver highly relevant, personalized, and localized ad experiences. This is easily one of the top growth stocks on the market.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
