The S&P 500 has had an impressive run these past 12 months. All eyes are on the Fed, anticipating a rate cut in September, and with a ‘not terrible’ economy, the market could be gearing up for another upward trend. That’s why many investors are scrambling to find high-potential stocks for the next bull run.
But what does “high-potential stocks” mean? In this case, they’re companies with great track records, impressive and consistent financial performance, and catalyst pipelines that will push prices higher. So, today, we will look at three stocks with the potential to soar in the coming months.
To get this list, I screened the market for stocks with the following criteria:
- Positive YTD performance,
- Positive revenue growth in the last three years,
- Positive earnings growth from its latest fiscal year and
- Minimum buy rating from analysts.
I sorted the list based on the highest YTD price performance, from highest to lowest. This lets me focus only on the companies that have been performing and have the potential to follow through on their earnings. Without further ado, let’s start with:
Sezzle (SEZL)
Known as a “buy now, pay later” company offering payment plans for in-store and online purchases, Sezzle (NASDAQ:SEZL) is a fintech company that provides consumers additional purchasing power through its interest-free installment plans.
The company’s platform provides consumers with payment solutions that instantly extend credit while offering installment payments over time. Sezzle is a trendy option for consumers, and it has now partnered with Vallarta Supermarkets in response to the 40% surge in the buy now, pay later payment model.
Sezzle ended FY’23 with impressive results. Revenue grew 26.9% YOY, driven by a massive 462.8% increase in subscription revenue, continuing its streak of consecutive annual revenue growth.
The company also saw a 157.2% growth in active subscribers, which exceeded 307,000. Even more impressive is the turnaround from a $38.1 million net loss in FY’22 to a $7.1 million profit in FY’23, which resulted in its stock price shooting up by 320.23% this year alone.
The company’s strong performance puts SEZL stock squarely in Wall Street’s “bull run stocks” list, garnering a strong buy rating.
Super Micro Computer (SMCI)
This next entry is not new in any list of top performers and has continuously built momentum in the last three years. Super Micro Computer (NASDAQ:SMCI), the long-standing partner of Nvidia (NASDAQ:NVDA), specializes in supporting data centers that power artificial intelligence models and applications. The company has been performing well, growing more than tenfold from trading around $85 in 2023. It has also been added to the S&P 500 last March as a testament to its business strength.
With its FY’24 financial report just around the corner, I’m excited to see what other developments are in store for Supermicro’s investors. SMCI has been on a constant upward trajectory for the last three fiscal years, with net sales climbing from $3.56 billion in FY’21 to FY’23’s $7.12 billion. Even better, diluted earnings per share have grown massively from $2.09 in FY’21 to $11.43 in FY’23.
Wall Street analysts agree, rating it as a strong buy despite SMCI stock skyrocketing by almost 200% YTD. So, if you are looking for strong stocks to buy before the next bull run, look no further than Super Micro.
ADMA Biologics (ADMA)
Known for its FDA-approved BIVIGAM, NABI-HB, and ASCENIV, ADMA Biologics (NASDAQ:ADMA) specializes in developing various treatments for infectious diseases and immune deficiencies.
While it holds the three FDA-approved plasma-derived biologics in its portfolio, it recently introduced a new pipeline addition, S. pneumonia Hyperimmune Globulin, which could generate around $300-500 million annually.
ADMA Biologics reported revenue was up 68% YOY growth in 2023. The key driver to this growth was an increase in sales of immunoglobulin products, which continued in Q1FY’24. The company’s revenue has been increasing YOY since 2020.
Regarding their bottom line, ADMA Biologics reported a net loss of $28.2 million in FY’23, improving from FY’22’s $65.9 million. The company expects to turn a profit in FY’24, with net income expected to reach $85 million.
ADMA has a strong buy rating from analysts, and the stock is also up 152% YTD—ample reason for any investor to add it to their next bull run stock list.
On the date of publication, Rick Orford 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.