In arguably most cases involving expert financial advice, you will encounter guidance toward established enterprises, not up-and-coming stocks to buy. While the latter category certainly dials up the heat in terms of overall sexiness, some folks just can’t handle adventurous portfolios. And that’s totally fine – we’re all different.
Nevertheless, for those that have the patience and the tolerance for risk, they may find greater satisfaction with long-term stocks. By that, I’m not talking about blue chips that you buy and hold forever. Rather, I’m referring to future growth stocks, entities that may look questionable now but may lead in particular market subsegments later.
Of course, the benefit of high-potential stocks centers on the maximization of capital returns. While you can do well by playing it safe, you often can’t get stupid rich unless you take some risks. Of course, the probability of failure is higher when swinging for the fences. Still, if you feel you’re due, these are the up-and-coming stocks to buy.
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As a spinoff from pharmaceutical giant Johnson & Johnson (NYSE:JNJ), Kenvue (NYSE:KVUE) admittedly might not rank among what purists would consider up-and-coming stocks to buy. Since making its public market debut last month, KVUE isn’t off to the greatest start, losing more than 4%. Nevertheless, for patient investors, KVUE could be intriguing.
Under the Kenvue umbrella, the company offers several household brands such as Listerine, Neutrogena, and Tylenol. Fundamentally, then, KVUE makes a case for long-term stocks because of its everyday relevance. No, it’s not a sexy enterprise by any stretch of the imagination. However, it offers predictability which should command a premium given the ambiguous economic environment.
As a separate entity, Kenvue will probably focus on slow-and-steady growth as well as consistent profitability. So far, it’s achieving just that. In the first quarter of 2023, the company posted revenue of $3.85 billion, up 3.2% year-over-year. It also delivered $330 million in net income.
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One of the most exciting names among up-and-coming stocks to buy, Mobileye (NASDAQ:MBLY) was acquired by Intel (NASDAQ:INTC) in 2017. However, Mobileye went public again last year. As a leader in the advanced driver-assistance system and autonomous driving sectors, MBLY courts tremendous interest among speculators. Since the beginning of this year, shares gained almost 17%. In the trailing one-year period, they’re up almost 32%.
To be fair, Mobileye will require patience. Presently, the market prices MBLY at a forward multiple of 63.45, ranked higher than 96.51% of its peers. Also, shares trade at a trailing-12-month sales multiple of 15.78. This stat comes in higher than 97.16% of sector rivals.
At the same time, Mobileye is a growth machine, featuring a three-year revenue growth rate of 30.6%, blowing past 92.3% of enterprises in its field. Also, its EBITDA growth rate during the same period impresses at 32.4%. Therefore, it’s well worth consideration as one of the high-potential stocks to buy.
Warby Parker (WRBY)
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Admittedly a risky enterprise among up-and-coming stocks to buy, Warby Parker (NYSE:WRBY) should be best left for speculators. Since the beginning of this year, WRBY gave up more than 20% of its equity value. Since its first public close, shares tumbled nearly 79%, obviously a worrying figure. Nevertheless, the online retailer of prescription glasses, contact lenses, and sunglasses may see demand steadily rise in the years ahead.
According to Nature Journal, analysts estimate that 57% of countries will have a myopia prevalence of more than 50% by 2050. Further, the World Health Organization reported that in 2019, at least 2.2 billion people suffered a vision impairment. The journal also argued that at least 1 billion within this cohort had a vision impairment that could have been prevented.
For whatever reason, we’re trending in the wrong direction when it comes to myopia. It’s just my opinion but our sedentary and digitalized lifestyle might not help. Either way, Warby Parker stands to benefit. Sure, it’s suffering now but it could be one of the future growth stocks.
AMTD Digital (HKD)
Headquartered in Singapore and based in Hong Kong, AMTD Digital (NYSE:HKD) is a financial technology (fintech) firm. Another risky enterprise among up-and-coming stocks, you may recognize AMTD because its ticker skyrocketed earlier this year and also last year. As InvestorPlace contributor Dana Blankenhorn stated, the mystery rise gave way to extreme skepticism.
And what exactly is AMTD Digital, my colleague openly pondered. “Is it a movie studio, a fashion company, a breath mint, or just a pot of money [AMTD founder] Calvin Choi created out of thin air? It’s hard to tell.” Indeed. What I can say is that per investment resource Gurufocus, AMTD carries zero debt. It also prints an equity-to-asset ratio of 0.96 times, ranked better than 98.82% of its peers in the software space.
Honestly, it’s one of the future growth stocks that you should take with a barrel full of salt. Nevertheless, HKD continues to attract attention. If it becomes a meme again, you’ll be glad to have owned some shares.
Loop Media (LPTV)
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If you’re the type that can absorb serious body blows with your up-and-coming stocks to buy, Loop Media (NYSEAMERICAN:LPTV) just might intrigue you. However, patience is an absolute must here. Since the start of the year, LPTV lost nearly 60% of its equity value. In the trailing year, the security hemorrhaged over 69%. And no, I wouldn’t exactly say it’s hitting a bottom. In the trailing five days, shares stumbled 19%.
If you can’t handle that kind of heat, you need to walk out because it only gets more “interesting” from here. Suffering from negative margins, the free music video, business TV, and digital signage service must also contend with a high debt load, as well as a liabilities profile that exceeds its assets.
Still, it’s also an intriguing growth narrative, at least for those who enjoy taking potshots with their portfolio. In its fiscal year ending Sept. 2022, Loop Media posted revenue of $30.83 million. On a TTM basis, Loop rang up $43.18 million. But can LPTV keep this momentum going? I’m not sure.
However, if you’re looking for high-potential stocks to the extreme, turn the dial to LPTV.
Acrivon Therapeutics (ACRV)
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A clinical-stage biopharmaceutical firm, Acrivon Therapeutics (NASDAQ:ACRV) develops precision oncology medicines that it matches to patients whose tumors are predicted to be sensitive to each specific medicine. Thanks to its compelling scientific relevance, ACRV carries significant interest among biotech speculators. However, it’s one of the choppy up-and-coming stocks to buy, making it a tough proposition for conservative investors.
Still, management revealed some encouraging news in its first quarter of 2023 earnings report. Specifically, the U.S. Food and Drug Administration (FDA) granted two Fast Track designations for Acrivon’s flagship ACR-368 monotherapy. Further, the company is advancing its internal pipeline programs targeting various diseases.
On a financial note, Acrivon represents a pre-revenue enterprise, meaning it’s one of the long-term stocks that will likely test stakeholders’ patience and resolve. Still, it offers a solid balance sheet, featuring a cash-to-debt ratio of 25.12 times, beating out 64.28% of its peers.
Lastly, analysts love ACRV, pegging it a unanimous strong buy. Also, be aware that they forecast a price target of $23.80, implying over 77% upside potential.
Maia Biotechnology (MAIA)
Headquartered in Chicago, Illinois, Maia Biotechnology (NYSEAMERICAN:MAIA) operates under the directive to research, develop and deliver innovative medicines to improve and extend people’s lives with cancer. Per its website, Maia is a targeted therapy, and immune-oncology company focused on developing first-in-class drugs with novel mechanisms of action. While representing one of the up-and-coming stocks based on scientific pertinence, MAIA has been incredibly volatile.
Since the beginning of this year, shares plunged more than 40%. In the trailing one-year period, they incurred an equity loss of more than 52%. Still, with its lead asset THIO – an investigational dual mechanism-of-action drug candidate incorporating telomere targeting and immunogenicity – moving into Phase 2 clinical testing, MAIA might be promising to extreme gamblers. Financially, it’s worthwhile to note that the company suffers no debt. Therefore, it enjoys at least some flexibility.
On a final note, Noble Financial analyst Robert LeBoyer pegged MAIA a buy with a $14 price target, implying over 560% upside potential. That would easily make it one of the future growth stocks to buy.
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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.