The Nasdaq Composite, which holds a number of high-growth technology stocks, has rallied 13.38% as of the end of Wednesday’s trading session. The tech giants of the market, particularly artificial intelligence (AI) chip maker, Nvidia (NASDAQ:NVDA), have helped to keep U.S. equities edging higher.
Also, macroeconomics will play a pivotal role in shaping out the way in which the rally continues. The U.S. Federal Reserve remains cautious about cutting rates. But better economic data on inflation could help to assure them as well as drive higher equities performance.
However, not every high-flying stock has to look like Nvidia. Rather, several, high-growth stocks have delivered solid performance for investors. Their businesses effectively capitalize on tailwinds present in their respective markets despite all the macroeconomic noise.
Let’s examine three such stocks that investors should grab now.
Frontline (FRO)
Based in Cyprus, Frontline (NYSE:FRO) is a contract oil shipping company that manages a fleet of 76 oil tankers that transport crude. Geopolitics as well as environmental incidents have been a boon for the shipping firm, as well as many others.
The Houthi rebels in Yemen have made traveling through the Suez Canal riskier than it has been in the past. This has forced shipping companies destined to Europe or Asia to take a longer route around the continent of Africa. Similarly, the Panama Canal has suffered from an unusual dry season that has prevented ships from passing through at high volumes. Both of these factors have risen shipping rates, effectively boosting profits for companies like Frontline.
In its recent Q1 earnings report for fiscal year 2024, revenue came in at $578.5 million, which represented a 16% year-over-year (YOY) increase. The company reported EPS of 81 cents per share. A strong oil demand outlook, including China, India and Japan, have kept oil tanker companies busy and will continue to do so throughout 2024.
FRO shares have risen more than 45% year-to-date (YTD). Yet, the stock still only trades at 7.7x forward earnings, making FRO stock a bargain.
ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) is a little-known semiconductor firm that has seen shares more than double over the past 12 months.
The semiconductor firm specializes in wet-cleaning and other front-end processing equipment that help larger original equipment manufacturers (OEMs) develop logic and memory chips. DRAM and NAND memory chips have been in high demand ever since generative AI made significant waves last year. In turn, ACM Research has experienced rapid sales growth.
During the first quarter of fiscal year 2024, ACM Research was able to increase sales by 105% YOY to $152.2 million. Also, quarterly EPS more than doubled from the same period last year as well, setting at around 26 cents per share.
Trading at only 14.4x forward earnings, ACMR seems like a good way to play the semiconductor equipment space.
Embraer (ERJ)
Plane-maker Embraer (NYSE:ERJ) deserves some attention.
While Embraer is regarded for its executive private jets, the firm’s E2 passenger jets have received a lot of buzz recently. In fact, for the year of 2023, of the 181 jets the company delivered, 64 of them were commercial jets. That’s a 12% increase from the raw number reported in 2022. In Q1 of 2024, Embraer reported similarly positive results. Commercial aviation backlog increased by $2.3 billion or 26% sequentially.
Additionally, the E195-E2 passenger jet continues to expand its reach with a new-type certifications from China, Singapore and the U.K. A new report says Embraer may be manufacturing a plane to compete with Boeing’s controversial 737-MAX and Airbus’s A320 variant. It could be a major growth tailwind for the plane-maker.
ERJ has risen 52% YTD, yet still trades at 22.7x forward earnings.
On the date of publication, Tyrik Torres 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.
