The market is off to its best start since 1987. That seems a double-edged sword, given what happened to the market that October. But aside from that swoon, it was a good year.
However, this isn’t 1987. The massive selloff we saw begin just before Q4 in select sectors spread through the broad market. And December was particularly brutal.
But now that it’s over, prices have come down to more reasonable levels, getting buyers interested in getting back into stocks, even if Q4 and Q1 earnings don’t set the world on fire.
[Last week], the markets took off on slight hints from the administration that there may be some lifting of tariffs in the China-U.S. trade war.
Now, I wouldn’t hang my hat on those soft rumors, especially from politicians that have tied their fate to market performance. But the fact is, the economy is coming back, and that’s worth your attention. Following are 10 high-growth stocks for the return of the bull, all of which are A-rated stocks in my Portfolio Grader.
CyberArk Software (CYBR)
CyberArk Software (NASDAQ:CYBR) is an Israeli firm that specializes in access security, particularly for highly regulated and security-focused industries like healthcare, financial services, energy and retail markets.
It focuses on making sure what’s going on in the front office and the back office don’t get muddled, and keeping hackers and malware at bay. As you have seen from various hacks in the past year, this is a growing expense for corporate victims and opens them up to costly and time-consuming lawsuits.
Up 89% in the past 12 months, CYBR is on a roll. And coming in with just a $2.9 billion market cap, it has plenty of growth ahead of it, especially in these sectors.
iRadimed (IRMD)
iRadimed (NASDAQ:IRMD) has a very interesting and very profitable niche market. It specializes in making, selling and maintaining equipment and products that are compatible with magnetic resonance imaging (MRI) equipment.
This may not seem like a big deal, but MRIs are powered by massive magnets, so there can’t be any metal in the room (or in a person’s body sometimes). This becomes a challenge when you need to have monitors or testing equipment with the patient as they’re undergoing evaluation.
Also, MRI diagnostics are becoming a helpful (and cost effective) way to move patients along the proper line of care. Insurance companies like that, as to do hospitals.
Up 73% in the past 12 months, it only sports a market cap around $290 million, so don’t chase it too far.
Pro-Dex (PDEX)
Pro-Dex (NASDAQ:PDEX) is a small company that engineers and manufactures high-precision tools across a number of different industries. For example, it makes rotary surgical and dental instruments, but it also makes products for other industries where tolerances are tight and reliability is crucial.
But the lion’s share of its business is as a medical device manufacturer — and that is good enough, since that sector is in high demand both in the U.S. and in Asia, especially China, where they are focused on beefing up their healthcare delivery and quality.
At a market cap just $56 million, it’s not a major player, but it does have a strong niche that is growing. PDEX stock is up almost 90% in the past 12 months yet only trades at a trailing price-to-earnings ratio of 25.
Brasil-Agro Companhia Brasileira de Propriedades Agricolas (LND)
Brasil-Agro Companhia Brasileira de Propriedades Agricolas (NYSE:LND) may not roll off your tongue, but is in the business of buying and developing land for cattle, sugarcane and grains.
Brazil just got a new president who is being compared to South America’s version of Donald Trump. And he’s already opening up indigenous land and rainforest to commercial operations. This is very good news for LND.
The stock is only up about 5.5% in the past 12 months, but Brazil was in pretty tough shape. Now that a new path to growth is underway, LND has a lot of potential. And it’s a good value here.
UFP Technologies (UFPT)
UFP Technologies (NASDAQ:UFPT) specializes in creating custom packaging, component and product solutions for OEMs in key strategic sectors like medical, automotive, aerospace, electronics and consumer.
All these are growth areas and UFPT is a U.S. supplier, so it has an upper hand over the challenges of dealing with Chinese competitors. What’s more, it specializes in high-end products and packaging, so it has a unique niche. And security-focused companies also like to work with U.S.-based firms.
Finally, many of these sectors are fairly price elastic, so they will pay more for what they specifically want.
Up 8% in the past 12 months, a revitalized economy will really boost its top and bottom lines.
QuinStreet (QNST)
QuinStreet (NASDAQ:QNST) delivers “performance marketing products and technologies” to its customers.
Basically, what that means is, they help businesses find customers on the internet. Through various strategies, QNST helps companies define, locate and acquire new business opportunities using their various tools, analytics and strategies.
This is a new but vibrant niche and QNST is growing like kudzu. The stock is up over 100% in the past 12 months and it’s closing in on a $1 billion market cap.
As the digital world becomes more omnipresent and complex, companies that help small and medium-sized businesses navigate it will be in greater demand.
Jernigan Capital (JCAP)
Jernigan Capital (NYSE:JCAP) is an interesting real estate investment trust (REIT). It specializes in developing and managing storage properties.
Usually REITs will focus on retail or tech or healthcare, but few solely focus their business on the self-storage sector. But it’s a good idea. There are few sectors that are growing like self-storage, and that growth will continue as the economy continues to expand and people become more mobile, looking for better opportunities wherever they may pop up.
As a REIT, JCAP distributes its net profits in the form of a dividend. So this stock is best bought for the long term, since scoring its 6.6% dividend is all part of the investment. Its 14% return over the past 12 months kicks its annual return to near 20%.
Veeva Systems (VEEV)
Veeva Systems (NYSE:VEEV) is an exciting company that is becoming a dominant player in an increasingly important niche — cloud-based software solutions for the life sciences industry.
Given the highly regulated and technical nature that life sciences companies deal with on a day to day basis, it makes perfect sense that the type of systems they need to manage testing, quality control, regulatory issues, marketing, etc need to be highly specialized. And that’s precisely what VEEV does.
The fact is, this sector is only going to grow in coming years. And VEEV will be a major beneficiary. Up 86% in the past year, it has plenty of legs left.
Ritchie Bros Auctioneers (RBA)
Ritchie Bros Auctioneers (NYSE:RBA) is certainly a unique company that has been building its brand since 1958.
It buys and sells industrial equipment. Its tag line is, “Where the world buys and sells industrial equipment.” That gives you an idea of how focused its business is.
But it does one thing beyond selling construction, agriculture, drilling and mining equipment and more. It finances it. And in this phase of recovery, both the sales and the financing are a great place to be.
This won’t be a rocket ship to the moon, but it will see some solid, long-term growth as the world gets back on its feet and interest rates continue to rise.
Freidman Industries (FRD)
Freidman Industries (NYSEAMERICAN:FRD) has been in the steel industry since 1965. It has two divisions — Coil, which produces hot rolled steel and coils; and Tubular, which produces steel pipes.
All these products supply core industries that will continue to demand product as the economy revives — rail, containers, pipelines, steel buildings, and oil and gas exploration. And because it’s a U.S. company, there’s no threat of getting hit with surprise tariffs or production delays due to trade issues.
FRD has $54 million market cap, so it’s a small player that has solid long-term customers. And as its customers grow, so will it. Up 42% last year, the good times are just beginning.
— Louis Navellier
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Source: Investor Place