These Hyper-Growth Stocks Could Deliver Triple-Digit Gains
Hyper-Growth stocks. The kind of stock whose underlying business is growing at a high-double-digit to triple-digit pace. The kind of stock every investor wants to own. The kind of stock that's hard to find before the really big moves start happening. The kind of stock we've uncovered for you today. There is no guarantee that any of these penny stocks will truly hit it big but they've all shown they have what it takes. Between secular tailwinds, being in the right place at the right time, and having what consumers want we view all three companies as
high-probability winners. With all three sitting on strong support after pulling back from recent highs the time to buy is now. The question is, which one is right for your speculative portfolio ... or could it be all three?
Fluent, Inc: Hyper-Growth Is On The Way
Fluent, Inc (
NASDAQ: FLNT) isn't really a hyper-growth story, at least not yet, but it is one we think could easily turn into one. Fluent, Inc is engaged in data-driven marketing and client acquisition, a service sorely in need by today's businesses. If there is one thing the pandemic has proven it is the web, digital, and
eCommerce are where today's businesses need to be if they want to stay relevant and compete. Fluent's most recent earnings report has revenue growing at a steady low-single-digit rate with increasing margins and profitability on tap. The company's media margin per client acquisition increased by 22% over the last year to contribute $32 to million to revenue and come in at 39% of sales. Shares of Fluent has been in a correction since the Q4 results were released due to an overly eager market. Now, with the stock down near the $3.50 level it is trading at strong support where a bounce should begin to form. Strong results later in the year should help drive the stock back up to the $7 level for a gain of 100%.
LiveXLive Media, Inc Tops 1 Million Paying Customers
LiveXLive Media, Inc (
NASDAQ: LIVX) is one of those companies that was, fortunately, in the right place at the right time when the pandemic hit. Not only was there a need from artists and venues to produce
socially distanced content but the consumer was demanding it as well. The demand for content helped the company reach the important milestone of 1 million paying customers and accelerate its growth to mind-boggling levels. Revenue growth slowed to a tepid 8% in the 2nd quarter of 2020 at the peak of shutdowns but has only accelerated since. The latest report, for the fiscal 3rd quarter/calendar 4th, has revenue up 97% from the previous year and that is on top of a positive comp in the year-ago quarter. Looking forward, this rate of growth should continue for the next 3 to 4 quarters at least under the combined forces of increasing amounts of content and a growing subscriber base.
LightInTheBox Cashes In On eCommerce
LightInTheBox (
NYSE: LITB) is a global retailer 100% focused on direct-to-consumer sales via
eCommerce. The company list products in nearly all verticals and has seen a marked acceleration in its growth over the past year. Revenue took a hit in the calendar Q1 period last year but that was due to shut-downs and shipping hurdles. Since then sales have bounced back to the tune of up 77% in the Q4 period with a further acceleration expected in the current quarter. Granted, the 100% growth expected in the Q1 period is on top of a very easy comp but the guidance is still very cautious. In our view, YOY growth in the current quarter will come closer to 125% if not higher and these gains should be sticky. Based on the comps, we think this company could grow in excess of 100% in F2022 and then build on those gains in 2023.
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