TipRanks
3 Monster Growth Stocks That Could Reach New Highs
Every investor knows that you can’t look to a stock’s past performance as predictor of future gains. It’s become axiom, even, one of the stock phrases that we all learn about in Econ 101: ‘Past performance does not guarantee future returns’ is common formulation. But that simple phrase, while true, raises a tough question: How should an investor judge a stock? The truth is, past is prologue, not prophet, and investors can profit by taking past performance as one of many factors in evaluating a stock. There’s no one sure path to success here, and every stock should considered as a unique individual – which makes past performance a useful indicator, even if it’s not the only one. Investors should also look for Wall Street’s view – are the analysts impressed by the stock? And in addition to that, how does the upside potential look like? Now we have useful profile for monster growth stocks: gangbusters gains, Buy ratings from the Wall Street analyst corps, and considerable upside for the coming year. Three stocks in the TipRanks database are flagging all those signs of strong forward growth. Here are the details. Amyris, Inc. (AMRS) Say ‘biotech,’ and most people will assume you’re talking about pharmaceuticals. But Amyris puts a different twist on the biotech industry. The company focuses on developing synthetic chemical replacements for common petroleum-, plant-, and animal-based products. Amyris operates three development divisions for cosmetics, health & wellness, and food flavorings, which are offered to the public through three direct-to-consumer brands: Pipette, Biossance, and Purecane. AMRS shares have shown rapid growth recently, taking off in the past six months. During that time, the company’s stock is up 786%, impressive by any standard. The company’s growth has accelerated in recent months, and a look at the recent 4Q20 earnings report will give some reasons. Q4 marked the third consecutive quarter of record product sales. The company reported $80 million in total sales, more than doubling the previous quarter’s result. Of that total, the $35 million in product revenue was up 71% year-over-year. The company also saw a significant yoy increase in gross margins, from 56% to 66%. The increasing sales let to full-year revenues of $173 million, a 13% year-over-year gain. Looking ahead to the end of 2021, the company guides toward continued increasing product sales leading to full-year total revenue near $400 million, well above the consensus forecast of $231 million. Covering this stock for Roth Capital, 5-star analyst Craig Irwin notes the company’s forward guidance and recent growth. Irwin also points out that Amyris is well-positioned to maintain its blistering pace. “Long-term growth is underpinned by a strong pipeline of new molecules in…
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