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3 monster growth stocks that could reach new highs
Every investor knows that you can not look at the performance of a stock as a predictor of future profits. It has even become an axiom, one of the stock phrases we all learn about in Econ 101: ‘Past performance does not guarantee future returns’ is a common wording. But the simple phrase begs a difficult question, although it is true: how should an investor rate a stock? The truth is that the past is a foreword, not a prophet, and that investors can benefit from the achievements of the past as one of the many factors in evaluating a stock. No one here is sure of success, and each stock should be considered as a unique individual, making achievements from the past a useful indicator, even if it is not the only one. Investors should also look at Wall Street’s view – were analysts impressed by the stock? And besides, what does the upside potential look like? We now have a useful profile for sample growth stocks: gains from gangbusters, buy ratings from the Wall Street analyst corps and significant increases for the coming year. Three stocks in the TipRanks database show all the signs of strong progress. Here are the details. Amyris, Inc. (AMRS) Say ‘biotech’, and most people will assume you are talking about pharmaceuticals. But Amyris is giving the biotechnology industry a different twist. The company focuses on the development of synthetic chemical substitutes for ordinary petroleum, plant and animal products. Amyris has three development divisions for cosmetics, health and wellness, and food flavorings, offered to the public by three brands offered directly to the consumer: Pipette, Biossance and Purecane. AMRS shares have recently shown rapid growth, rising over the past six months. During that time, the company’s share increased by 786%, which is impressive. The company’s growth has accelerated in recent months, and a look at the recent 4Q20 earnings report will give some reasons. Q4 was the third consecutive quarter of record product sales. The company reported $ 80 million in total sales, more than doubling its previous quarter results. Of the total, product revenue was $ 35 million year-on-year, 71% higher. The company also saw a significant increase in gross margins, from 56% to 66%. The increasing sales generated total revenue of $ 173 million to a year-on-year profit of 13%. With a view to the end of 2021, the company is leading to the continued increase in product sales leading to total annual revenue of almost $ 400 million, well above the $ 231 million consensus forecast. 5-star analyst Craig Irwin, who covers this stock for Roth Capital, notes the company’s forecast and recent growth. Irwin also points out that Amyris is well positioned to maintain his lightning pace. “Long-term growth is supported by a strong pipeline of new molecules being developed with strategic partners. With the 13 ingredients in the market, and 18 in active development, we expect continued healthy portfolio expansion as it hits the market by 2025. Mgmt expects to add another 8 to 10 ingredients to the active development pipeline in 2021, with a broad channel for expanding long-term product and ingredient potential, ”says Irwin. It is not surprising that Irwin considers AMRS a buy, and its $ 33 price target implies an upward potential of 59% over the next 12 months. (Click here to see Irwin’s record.) The rapid growth will always attract Wall Street analysts to become an innovator. Amyris has picked up 4 recent Buy reviews, all of which agree with a strong Buy consensus rating. AMRS has a share price of $ 20.65, and even after its recent valuation, the average price target of $ 25.50 still points to an upward one of 23%. (See AMRS stock analysis on TipRanks) Clean Energy Fuels (CLNE) The next growth stock we are looking at is inhabited in the renewable fuels industry. It is a sector that is partly growing in political coffers – renewables are a ‘thing’ and partly on the strength of the business model. Clean Energy produces renewable natural gas (RNG) for transportation purposes. The company’s fuel products are marketed to transportation and transportation customers; Clean Energy’s customers include Estes Express Lines, UPS and the New York City MTA. In early February, Clean Energy announced a major multi-year contract to supply the LA County Metro system – the largest bus fleet in the US – with 47.5 million gallons of RNG. The deal is part of the LA Metro’s move to low-carbon fuel. Clean Energy has been granted three fuel depots for five years, with the option to extend the contract by three years. This is in addition to the fact that five fuel plants with Clean Energy are already working for Metro. The LA Metro news came after CLNE shares recently showed explosive growth, as part of a general lane that has seen the stock rise 492% over the past six months. The increase coincided with several other recent contracts, totaling more than 58 million liters of RNG. Customers include Pacific Green Trucking and Waste Connections. Craig-Hallum, analyst Eric Stine, rated 5 stars at TipRanks, writes on Clean Energy: ‘We think it’s becoming increasingly clear that natural gas (and RNG) is going to be a critical fuel as part of the carbon drive of transportation with Amazon ‘s initial deployment an exclamation point. With CLNE’s dominant position and RNG plans, the significant financial impact of RNG amplified by the increased contribution of low AI RNG, and the most extensive station footprint, we see CLNE as an ideal investment in natural gas and also note that it is one of the few pure investments in renewable natural gas. In light of his positive comments, Stine places a Buy rating and a $ 25 price target on CLNE. Its target indicates confidence in 68% growth for the coming year. (To see Stine’s record, click here. Overall, Wall Street analysts are unequivocal about the ability of this stock to continue melting to new highs. CLNE’s consensus rating on Strong Buy is based on 3 Buys and 1 Hold This does not detract from the fact that its average price target of $ 23 sets the potential twelve month increase at ~ 55%. (See CLNE stock analysis on TipRanks) Aemetis (AMTX) Aemetis is another company focusing on renewable fuels. Aemetis’ main products are ethanol and biodiesel, together with glycerin, an important industrial chemical, but the company does not rest on one sector and has a broad production portfolio that also includes distiller granules, edible oils and palm oil and other food products. in the food sector in India and the Central Valley in California. Aemetis’s shares have recently shown strong growth, with a net profit of 736% on an annualized basis. et came after the company announced that it would start a ‘Carbon Zero’ plant to produce renewable trucks and jet fuels, with a capacity of 23 million liters per year. The company has also published a five-year growth plan that aims for $ 1 billion in total revenue by 2025. Aemetis reported 4Q20 results earlier this month, and despite year-on-year losses, the company was able to make a positive turn in the results. The report notes that although 2020 was severely disrupted in demand, ethanol and fuel grade alcohol revenues were $ 112 million, just $ 3 million less than the previous year. Amit Dayal, # 9 overall among Wall Street analysts, takes note of all of this in his recent coverage of AMTX. “We believe that the company, as one of the leaders in the implementation of a zero-to-negative carbon intensity (CI) strategy, is developing a market for renewable fuels that should support a better margin profile compared to competitors. . We also believe that the company has established these initiatives well in a very friendly federal government environment, which has improved the likelihood of success, “writes Dayal. To this end, Dayal sets a $ 28 price target on the stock, which its Buy- rating and suggests a one-year growth potential of 34%. (To view Dayal’s record, click here.) AMTX shares have so far managed to slip under the radar and have received only two recent reviews. however, agree that this stock is a buy offer, priced at $ 20.83, with an average target of $ 26.50 that allows for 27% growth by the end of the year (See AMTX shares) analysis on TipRanks.) To find great ideas for growth stocks that are trading at attractive valuations, visit TipRanks’ best-selling stocks, a newly launched tool that unites all the TipRanks stocks of the stocks. expressed in this article eek be, are exclusively those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.