Hypergrowth stocks are the holy grail of traders and growth investors. These stocks can multiply a small position by two, five, 10 times, or more. In many cases, analysts like to project what stocks they believe can deliver this kind of market-beating performance in the future.
However, this article analyzes three stocks that have posted a 100% or higher increase in share price over the last 12 months. Past results don’t always equate to future performance. And it’s fair to note that many hypergrowth stocks can’t sustain that return over time. Many have even failed. However, each stock on this list appears likely to move even higher.
You’ll notice that none of these stocks is named Nvidia (NASDAQ:NVDA). The Magnificent 7 stock could have easily made this list, but it seems too easy. Instead, the hypergrowth stocks on this list may be able to give you Nvidia-like gains but for, perhaps, far less investment capital.
ACM Research (ACMR)
As noted, Nvidia is not on this list, but that doesn’t mean we ignored the chip sector altogether. ACM Research (NYSE:ACMR) is a picks-and-shovels play on the likely rise in semiconductor stocks. This growth isn’t just due to Nvidia’s strong earnings report. Advanced semiconductor chips are going to be essential to the growing AI economy.
ACM Research is the leading provider of semiconductor cleaning equipment essential in manufacturing advanced semiconductor chips. Specifically, the company handles wafer cleaning, a market that experts believe will achieve a compound annual growth rate (CAGR) of 4.5% through 2030, promoting a valuation of $5.77 billion. In 2023, ACM had over $557 million in revenue, about 13% of the total market valuation of $4.23 billion.
In the first quarter of 2024, the company nearly doubled its revenue on a year-over-year (YOY) basis. However, ACM stock is down 16.5% in the month following its earnings report. That may be due to the softness in the wafer fab equipment market, which is expected to continue this year before picking up in 2025.
Tidewater (TDW)
The next of these hypergrowth stocks comes from the energy sector. Tidewater (NYSE:TDW) operates a fleet of marine service vessels supporting the energy industry’s exploration and production efforts. Capital expenditures in this sector are expected to grow significantly in the coming years as global oil production will increase due to rising demand.
TDW stock has been up 118% in the last 12 months and will be up 42.5% in 2024. That’s notable because the first quarter is historically the company’s slowest quarter from an activity perspective – by the company’s admission. Yet Tidewater delivered YOY revenue growth of 66% in the quarter, and earnings were up a whopping 286% YOY.
Analysts have a consensus price target of $119.83, 16.5% higher than its closing price on May 24, 2024. However, BTIG Research has reiterated its Buy rating on TDW stock since the company’s earnings report and raised its price target from $110 to $130.
Context Therapeutics (CNTX)
Context Therapeutics (NASDAQ:CNTX) is a pre-clinical stage biopharmaceutical company in the early stages of developing drugs to combat solid tumors. In early May 2024, the company received FDA clearance for its IND application to bring its CTIM-76 candidate into Phase 1 clinical trials. CTIM-76 is “a promising Claudin 6 (CLDNG) x CD3 T cell engaging bispecific antibody.”
It’s not unusual to see biopharmaceutical companies on a list of hypergrowth stocks. That’s because all it takes is one blockbuster drug to send revenue soaring and turn unprofitable stocks profitable. On the other hand, many of these companies never make it through the clinical trial stage.
However, in May 2024, Context also completed a private placement that netted the company gross proceeds of approximately $100 million. This will allow the company to begin the Phase 1 trial.
CNTX stock has been up 138% in the last 12 months, but investors should remember that this is still a penny stock that trades for just $2 a share. It’s not only unprofitable, but the company is still in the pre-revenue stage. Like many penny stocks, it doesn’t receive much analyst coverage, but the three analysts that have issued price targets have a consensus price of $6.50, which would be a 225% gain.
On the date of publication, Chris Markoch did not have (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.
