Hypergrowth stocks isn’t so much about returns as it is time. Don’t get me wrong: when you think about the words “hyper” and “growth,” the price moving in the northward direction along the y-axis is crucial. At the same time, so is the x-axis or time. Plenty of blue-chip enterprises can get you robust returns. The problem usually is that they take too darn long to get there.
Let me give you a silly example but one that makes sense. Your typical economy car may hit 60 miles per hour from standstill around the seven-second mark. A high-powered German luxury coupe may do it in under four seconds. Both vehicles can eventually get to 60 miles per hour. It’s just that one gets you there a lot quicker.
Now, the problem with the latter vehicle is that nothing is for free. From the price of the car to the ridiculous fuel consumption, it’s a high intensity but high-cost proposition. In market terms, we’re talking high risk, high reward. If you can handle the heat, below are hypergrowth stocks to consider.
Porch Group (PRCH)
Operating in the application software industry, Porch Group (NASDAQ:PRCH) provides software and solutions for the home services industry. This includes home inspections, moving services and home improvement. Fundamentally, Porch ranks among the hypergrowth stocks because of the elevated interest in residential real estate.
Yes, prices may be sky high right now. With lower interest rates potentially on the horizon, prices may accelerate northward still. However, would-be buyers have been accumulating funds for the last few years. So, should borrowing costs decline, such buyers may be in a net positive position to pull the trigger. And that’s what makes PRCH stock particularly enticing.
It’s also worth noting for speculators that shares trade hands at 0.41X trailing-year sales. Between the first quarter of 2023 to Q1 2024, the average metric stood at 0.59X. It’s possible, then, that PRCH could rise to its prior valuation.
Analysts see fiscal 2024 sales hitting $457.54 million. If so, that would mean a lift of 6.3%. It would also mean that PRCH may be even more undervalued. Therefore, it’s one of the hypergrowth stocks to consider.
Lucid Diagnostics (LUCD)
Falling under the medical devices industry, Lucid Diagnostics (NASDAQ:LUCD) focuses on developing diagnostics for early detection of certain types of cancer. Its mainline (and proprietary) product is called EsoGuard. Naturally, Lucid ranks among the most intriguing hypergrowth stocks for its ability to generate superior health outcomes. Early detection is key to cancer survival.
In addition, Lucid benefits from its non-invasive process. Certainly, there are many ways to detect cancer. However, let’s just say that some methodologies are rather unpleasant. You might say that the cure is worse than the disease. However, Lucid’s convenient diagnostic technology could revolutionize cancer screening through widespread adoption and growth.
Right now, LUCD stock trades at 12.18X trailing-year sales. That’s objectively quite high. However, in the past year, this metric stood at 65.32X. Imagine if LUCD rose even partially to its prior lofty valuation?
Well, analysts are projecting sales of $5.54 million by year’s end. That’s a gain of 128.2% from last year. It’s one of the most tempting ideas among hypergrowth stocks.
BlackSky Technology (BKSY)
Operating in the scientific and technical instruments industry, BlackSky Technology (NYSE:BKSY) represents one of my favorite ideas for hypergrowth stocks. Yes, BKSY slipped almost 20% since the beginning of the year. However, in the trailing month, shares are starting to look alive, gaining nearly 9%.
Fundamentally, what makes BKSY stock so compelling is the underlying space economy. BlackSky provides real-time geospatial intelligence and global monitoring services. It achieves this service through a constellation of small satellites. For speculators of hypergrowth stocks, BlackSky is relevant thanks to its myriad applications: defense, disaster response, business intelligence, you name it.
Now, it must be said that BlackSky isn’t perfect. It’s not consistently profitable, which is a challenge. However, it’s a steadily growing enterprise. Further, BKSY stock trades at 1.55X sales. In the prior year, this metric stood at 2.55X. I’ll say it again: this is an equity that can potentially rise to its prior valuation.
By year’s end, analysts project that revenue may hit $108.94 million. If so, that would imply a growth rate of 15.3%. It’s well worth keeping on the radar.
On the date of publication, Josh Enomoto 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.
