There are some potentially skyrocketing stocks I believe will have the potential to increase 30% or more in light of some recent catalysts. These companies can surge past the broader indices, such as the S&P 500 and the Nasdaq, or even potentially Bitcoin (BTC-USD), making them highly attractive in the short term.
The companies discussed in this article are those positioned in sectors with promising growth prospects, backed by strong fundamentals and recent developments that could serve as catalysts for significant price appreciation. The risk is high, and I feel it’s important to buy into these positions gradually as opposed to throwing down a huge amount of capital all at once as a containment strategy.
So, here are three skyrocketing stocks for investors to consider for February and beyond. It should also be noted that these predictions are speculative, and investors should rely on a mix of investments instead of putting all of their eggs in one basket or betting too big on these plays.
Accenture (ACN)
Accenture (NYSE:ACN) is a leading global professional services company, providing a broad range of services in strategy, consulting, digital, technology and operations. The company is well-positioned to benefit from the explosive growth in generative AI, with a $3 billion investment to double its data and AI workforce to 80,000.
The company reported over $450 million in Gen AI new bookings in Q1 of FY24, indicating a strong start beyond its entire FY23 performance. With AI demand accelerating and a small number of companies utilizing AI, Accenture sees significant long-term potential. For FY24, Accenture expects EPS in the range of $11.97 to $12.32, revenue growth of 2% to 5%, and operating cash flow between $9.3 and $9.9 billion.
I believe the AI revolution will serve as an accretive base for ACN stock’s price to surge in value. We’re still in the earliest stages of witnessing its introduction to society. As more investors pile into this craze, I expect the valuations of companies like ACN to continue to rise, giving it the potential to surge in the near future.
RTX (RTX)
RTX (NYSE:RTX) is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. It’s been identified as a key player in AI technologies, especially in defense, with innovative products like the Raiven airborne sensor that uses AI to identify targets in real time.
RTX projected sales of $78 to $79 billion for 2024, with an adjusted EPS range of $5.25 to $5.40 and anticipates a free cash flow of approximately $5.7 billion. In 2023, the company experienced a strong recovery in air travel, surpassing pre-pandemic levels which significantly drove demand in both the commercial and defense sectors. The defense backlog has reached $78 billion, marking a $9 billion increase from the previous year.
In addition to the defense backlog providing short-term visibility and AI providing growth tailwinds, the geopolitical situation worldwide has become increasingly unstable, which means defense picks like RTX are poised to rise in value over the future, making it potentially one of those skyrocketing stocks.
Zscaler (ZS)
Zscaler (NASDAQ:ZS) is a cloud security company that incorporates AI into its platforms for cybersecurity solutions.
For the fiscal year 2024, Zscaler has provided an optimistic outlook, projecting revenues to reach $2.1 billion, indicating a 30% year-over-year growth. That forecast is supported by the company’s strong financial position, including a 27% year-over-year increase in its cash position to $2.3 billion.
Analysts have a positive outlook on Zscaler, with a consensus indicating a Strong Buy or Buy rating from 80.8% of top-rated analysts. The company’s stock performance has been commendable, outperforming the broader market with a year-over-year increase of 40.4%, significantly surpassing the S&P 500’s gain of 14.9% in November last year.
Cybersecurity is an industry that will only grow in the future, thanks to the surging incidents of cybercrime and the growing geopolitical instability. For these reasons, I think ZS has the potential to become one of the skyrocketing stocks.
On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
