Growth investing is a perennially popular strategy – and for good reason. While not all growth stocks are profitable, many are driven by strong business fundamentals and innovative products. These characteristics can fuel long-term appreciation and make them attractive components of a growth-focused portfolio.
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Of course, there’s a common caveat: past performance doesn’t guarantee future returns – and that’s absolutely true. Still, when strong past performance is paired with solid fundamentals and robust forward-looking metrics, it can offer valuable insight. It’s not about blindly chasing momentum, but rather recognizing when a stock’s surge is backed by substance.
That’s precisely the case with the real ‘monster growth’ stocks – ones that have recently posted gains of 100% or more. And they’re not just attracting investor attention; they’re winning over some of Wall Street’s top analysts as well.
In fact, some recent upgrades signal growing confidence in their continued trajectory. We dove into the TipRanks database to see which names stand out, and found two of those ‘monster growth’ stocks with impressive gains, strong Buy ratings, and bullish commentary from analysts. Let’s take a closer look.
The first stock we’ll look at is a niche company – but one with a lot of potential. The Metals Company focuses on the biggest mining opportunity of the near future – the exploration and exploitation of metal deposits on the deep sea floor. Specifically, the company aims to locate and recover deposits of polymetallic nodules, a rock-metal alloy deposit that forms naturally on the abyssal sea floor through the precipitation of metals from seawater.
The potential here lies in the particular metals that form polymetallic nodules – nickel sulfate, cobalt sulfate, copper cathode, and manganese silicate. These alloys contain four of the most important base metals in today’s industrial world, metals that are essential in battery production. The sea floor is covered with them, forming a priceless resource at a time when land-based mining is facing a combination of rising costs and falling yields.
The Metals Company has the long-term goal of starting a mining operation to recover polymetallic nodules. The company, in May, submitted to the National Oceanic and Atmospheric Administration its first application for a commercial recovery permit in line with the US Seabed Mining Code. The application is the first step toward regulatory approval of operations. The permit application followed President Trump’s April 24 executive order prioritizing the exploration and exploitation of offshore resources in critical minerals.
That was not the only move the company has made toward setting up operations. Early this month, The Metals Company entered a sponsorship agreement with the Pacific island nation of Nauru for the development of seafloor resources, and on June 16 it announced an investment from Korea Zinc specifically to develop deep-sea critical resources. The Korea Zinc investment totals $85.2 million.
All of this could explain why The Metals Company has seen its stock gain 557% in the year to date, despite the company being entirely pre-revenue and currently running quarterly earnings losses.
In coverage for Wedbush, analyst Daniel Ives explains the attractions of this stock. “We have significantly increased confidence in the long-term TMC growth story following the Executive Order signed by President Trump at the end of April along with our recent industry checks to boost domestic critical mineral supply through deep sea mining,” the analyst commented.
Ives goes on to outline the company’s current state and the foundation it has built to support its future operations, writing, “The major theme holding TMC back was the lack of a regulatory framework and the recent Executive Order allows the company to bypass the UN-backed ISA and receive a permit to begin commercial production in the Clarion Clipperton Zone much sooner and more likely than before the Trump Administration took over in January. The company has also raised over $120+ million in cash over the past month in strategic investments, including ~$85 million from Korea Zinc on June 16th, which has significantly bolstered its balance sheet to continue to aggressively invest in this generational opportunity with major support from the US government.”
For Ives, this situation justifies bumping TMC shares up from Neutral to Outperform (i.e., Buy), and he backs that stance with an $11 price target (up from $6) that indicates his confidence in a 48.5% upside for the coming year. (To watch Ives’ track record, click here)
There are only 3 recent analyst reviews on record for TMC stock,
Content adapted by the team from the original source: https://finance.yahoo.com/news/over-100-2-monster-growth-170647806.html
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