Nanotechnology stocks could be the next big trend in growth investing. This application of nanotech could profoundly impact many sectors of the economy, ranging from healthcare to manufacturing to space flight.
What’s great about these nanotechnology stocks is that many trade below their intrinsic values. They’re not usually that popular with the retail crowd of investors who gravitate towards the marquee names and their small market capitalizations.
So, if you’re looking for a list of nanotech stocks that could potentially make you a millionaire in the long run, here are three worth considering.
Applied Materials (AMAT)
Applied Materials (NASDAQ:AMAT) is an American multinational corporation that engineers, manufactures and sells equipment, software, and services for the semiconductor, flat panel display and solar photovoltaic industries.
Now might be a good time to consider loading up on AMAT shares. It recently beat analyst estimates for its fiscal fourth quarter and offered an outlook above previous guidance for the current period. The company earned an adjusted $2.12 per share share on sales of $6.72 billion.
Applied Materials has a low forward P/E ratio of 18.28, which suggests that the stock may be undervalued. Additionally, the company has a strong track record of earnings growth and is well positioned to benefit from the growing demand for nanotechnology products in the future.
With these factors considered, AMAT is one of those nanotechnology stocks to buy.
Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) is an American company that engineers manufactures, and sells microinverters, energy storage products and software for the solar photovoltaic industry.
The company has long-term growth potential driven by its leadership in microinverters and expansion into new products and markets. It’s also expanding production lines across Europe and the US. The company offers a complete home energy solution package that can all be controlled through a single app and provides significant savings to its customers.
Enphase’s valuation ratios are high, with a trailing P/E of 24.64, a forward P/E of 28.01 and a PEG ratio of 4.12. Additionally, the company’s price-to-sales ratio is 5.26 and its price-to-book ratio is 13.23. These ratios are all above industry averages, which suggests that the market is bullish about ENPH’s future performance relative to its peers.
The millionaire-minting potential for Enphase is also bolstered because it has a strong balance sheet, with total cash of $1.78 billion and total debt of $1.32 billion. The company also has a strong profit margin of 21.08% and a return on equity of 70.38%. In addition, Enphase has a good track record of revenue growth, with revenue growing 13.20% year-over-year in the most recent quarter.
Nano Dimension (NNDM)
Nano Dimension (NASDAQ:NNDM) is an Israeli company that develops and manufactures additive manufacturing systems to produce 3D-printed nanostructures. Like other nanotechnology stocks on this list, NNDM’s potential could be explosive.
Nano Dimension is a good buy for investors because the company has approved a $200 million share buyback plan. This is a significant percentage of the outstanding shares and will likely boost the stock price. Additionally, the company is pursuing a growth-by-acquisition strategy, which could lead to increased shareholder value.
NNDM stock is also making a serious move to help secure shareholder value for the future. The company has offered $1.1 billion to acquire Stratasys, which would create a global leader in the 3D printing industry. The acquisition would allow the company to capitalize on new growth opportunities and become better positioned to compete in its competitive environment.
NNDM therefore has a lot going for it to mint the next generation of millionaires.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
