Boxing is a dangerous sport. Bare-knuckled fighting is even worse. Along with the long-term risks associated with repeated blows to the head, going no holds barred can potentially lead to catastrophic acute injuries, even the very risk of being “unalived,” to use the algorithm-friendly term. What does this have to do with hypergrowth stocks? In my opinion, everything.
I suppose that the visceral thrill of man-to-man competition – and emerging victorious – elicits a euphoric sensation that no other sport can fully capture. And that’s a similar thrill with hypergrowth stocks in the market paradigm. Usually, financial advisors direct you to the Warren Buffett approach of making smart decisions over the long haul.
However, Buffett is blessed with good genes and not all of us may last that long. Time is money and with the right speculative idea, you can acquire wealth quicker than you imagined. At the same time, you can lose everything with one ill-timed blow.
Forgive the graphic imagery but this is serious stuff. If you can handle the risk and can gamble responsibly, then these hypergrowth stocks may be of interest.
Aqua Metals (AQMS)
Based in Reno, Nevada, Aqua Metals (NASDAQ:AQMS) falls under the waste management industry. Specifically, it engages in the recycling of metals through its patented AquaRefining technology. What makes the innovation compelling is that the system produces metals and alloys that can be reintegrated into the battery manufacturing supply chain. As well, the metals can be distributed for advanced manufacturing industries.
Given that we’re on a pathway to new paradigms in areas such as mobility and productivity, Aqua Metals could become powerfully relevant. However, prospective speculators must be convinced in the long-term narrative. For example, the company isn’t profitable, incurring a loss per share of 5 cents in the past four quarters. Also, the average “earnings” surprise came out to 7.5% below breakeven.
Still, what’s enticing is the growth narrative. In the trailing 12 months (TTM), Aqua posted sales of $25,000. I understand that such a haul is nothing to write home about. However, by year’s end, revenue could soar to $1.29 million. What’s even more enticing, by fiscal 2025, sales could skyrocket to $20.88 million. Analysts are looking at an 11-bagger opportunity with a price target of $4.
In other words, for the risk taker, it’s one of the hypergrowth stocks to consider.
Quantum Computing (QUBT)
While seemingly everyone is talking about artificial intelligence these days, another tech segment deserves consideration and that’s the next generation of supercomputers. Here, Quantum Computing (NASDAQ:QUBT) makes its business model as unambiguous as possible. Targeting its namesake industry, Quantum offers accessible and affordable quantum-computing machinery.
Fundamentally, what makes QUBT stock attractive is the underlying sector. Rather than bits, quantum computers use qubits. They can exist in multiple states at one time, which is difficult to conceptualize in a short article. Long story short, quantum machines can process myriad advanced calculations simultaneously. Eventually, the tech should render classical computers obsolete.
Now, we’re a bit away from everyone accessing their own stratospherically advanced computers. But that’s also what makes QUBT one of the hypergrowth stocks to consider. It’s the early innings and shares could swing dramatically higher from here.
Analysts believe that by year’s end, revenue could hit $1 million. That’s up 179.3% from last year. By 2025, the tally could rise to $2.5 million, making it a speculative play worth putting on your radar.
Knightscope (KSCP)
Easily one of the riskiest hypergrowth stocks available, Knightscope (NASDAQ:KSCP) carries a lot of potential thanks to its security-related innovations. However, convincing investors will be a different story. Since the start of the year, KSCP stock suffered a loss of more than 78%. You’ve got to be prepared for volatility. Still, Knightscope’s autonomous security robots (ASRs) could shift the security and protective service landscape.
One of the biggest challenges in the security sector is that simple interactions can quickly escalate into bigger problems. A suspect may have an attitude problem or different parties can read into messages that were simply misinterpreted. However, by putting an autonomous robot into the mix, the risk of escalation is mitigated. Even if a violent incident erupted, the robot would be on the front line, not a human operator.
Still, it’s a risky idea. Knightscope isn’t profitable yet. And revenue in the TTM period is small at $12.15 million. Admittedly, analysts see an erosion in the top line, which doesn’t help sentiment. Nevertheless, by fiscal 2025, sales could bump up to $17 million. If so, that would imply a nearly 42% growth rate.
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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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
