They are often grouped together, but not all growth values are the same. Indeed, they are each radically different in terms of risk, potential and longevity. One is not inherently as good as another.
With that as a backdrop, here’s a closer look at three hot growth stocks that are screaming buy right now. All three of these things can be higher than average risk, but if you can stomach it, the potential reward is worth it. In no particular order…
Rocket Lab United States
For decades, putting satellites into orbit was primarily the responsibility of NASA (or space programs funded by other countries’ governments). It simply didn’t make financial sense for a telecommunications company to handle this occasionally necessary work itself.
However, as most investors expected, things have changed on this front. The need for communications satellites has exploded and the cost of transporting them into space has plummeted. It turns out that NASA’s oversized rockets are not ideal for putting many smaller satellites into orbit.
Enter Rocket Lab United States (NASDAQ:RKLB). It is one of the alternatives to NASA services, or even to privatized heavy launch companies. Rocket Lab’s relatively small and reusable Electron and Neutron rockets have put 183 satellites into orbit in 47 different launches. In the meantime, Rocket Lab USA technology can be found on more than 1,700 satellites already in orbit. In fact, NASA is even one of its paying customers.
And it’s still just the beginning. Industry research and consulting firm Quilty Space estimates that the world will place an additional 20,000 new satellites into space by 2030. This sets the stage for annualized industry revenue growth of 21% over this period. period, according to a Mordor Intelligence report.
Rocket Lab USA will likely gain more than its fair share of this growth. Analysts expect the company’s revenue to grow 76% this year and 47% next year. And although Rocket Lab is still operating in the red, the analyst community believes it is on track to turn a profit by 2026. Stocks, however, could begin to recover from their pullback from the 2021 high well before this date, in anticipation of reaching this milestone.
Confluence
Confluence (NASDAQ:CFLT) may not be a household name. However, there’s a good chance that you or someone living in your household is taking advantage of its technology without even knowing it. Simply put, Confluent helps businesses manage and share their digital data more efficiently and reliably.
Anyone digging into the details of the company’s operations will likely come across the term “data streaming,” but make no mistake about the use of the phrase. Although Confluent can certainly help video streaming players like Netflix And Walt Disney better manage their streaming operations, in this context the idea is much broader.
The company ensures that its customers’ software, applications and data work together seamlessly. Its paying customers include retailers, financial companies, factories and government agencies, to name a few. Any organization that relies on data delivery via the cloud could potentially benefit from Confluent’s services.
And the need for such solutions is simply incredible. UBS expects the amount of digital data processed worldwide to be 10 times greater in 2030 than it was in 2020. Most of this growth will likely materialize at the end of this period. Investors, however, will not have to wait to see Confluent benefit from this bullish tailwind. The company is expected to report revenue growth of nearly 23% this fiscal year before accelerating to a pace of 25% next year.
The thing: Confluent is already profitable, and increasingly so. This year’s projected earnings per share of $0.18 is significantly better than last year’s $0.04, en route to next year’s expected bottom line of $0.33 per share.
It’s unclear why the stock simply drifted sideways after retreating from its 2021 high. The analyst community disagrees with its current price, however. Their current consensus target of $34.04 is nearly 20% above the stock’s current price, with most of these analysts considering Confluent stock a Strong Buy.
Iovance Biotherapy
Finally, add a biopharmaceutical outfit Iovance Biotherapy (NASDAQ:IOVA) to your list of hot growth stocks to buy right now.
It’s anything but a well-known pharmaceutical name, mainly because it didn’t have a revenue-generating product until early last year. That’s when it acquired Clinigen Limited’s Proleukin, which boosts the T cell response of cancer patients once they have received an infusion of tumor-infiltrating lymphocytes. This generated the company’s first revenue, but was ultimately part of a larger strategy.
In February of this year, the US Food and Drug Administration approved Iovance’s Amtagvi, which is – you guessed it – a tumor-infiltrating lymphocyte. This is the first time the FDA has approved such a therapy for solid tumors.
Needless to say, Amtagvi is Iovance’s current flagship drug. Well it should be. Jasminemay Barcelon, a cancer drugs analyst at GlobalData, estimates that Amtagvi’s annual revenue could hit the $1 billion mark by 2030. And even that outlook might be too conservative; Barcelona suggests that “this figure could be even higher following the accelerated approval due to several factors.” She highlights that “the company’s pipeline also contains potential label expansions to other solid tumors with ongoing studies of Amtagvi as monotherapy in cervical cancer and in combination with cross-point inhibitors.” immune controls for melanoma, cervical and non-small cell lung cancer (NSCLC). “.
For comparison, this company’s current market cap is just under $4 billion.
Biopharmaceutical stocks are risky and generally volatile, particularly when they represent young or unprofitable companies. Iovance Biotherapeutics represents both of these, so its shares are unlikely to be an exception to this predictable volatility. Be prepared if you dive.
If your stomach can handle it, this choice might just be worth the seasickness.
Should you invest $1,000 in Rocket Lab USA right now?
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James Brumley has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Confluent, Iovance Biotherapeutics, Netflix and Walt Disney. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy.
Do you have $500? These high-growth stocks are screaming buys right now was originally published by The Motley Fool
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