There are growth ideas and then there are the top hypergrowth stocks to buy, enterprises that provide zero guarantees other than raising your blood pressure. So, if you already have high blood pressure, investing in the hypergrowth sector will almost surely be hazardous to your physical, mental and emotional wellbeing. For everyone else that can handle the heat, I suppose these ideas may intrigue you.
Generally speaking, the aforementioned sector focuses on high potential tech stocks or companies that aim to commercialize the future of technology industry solutions. In this arena, you can throw away any pretense of value. Price-earnings ratios? Forget it. To paraphrase the (fictional) inventor Dr. Emmett Brown, where we’re going, we don’t need earnings.
Now, I should back up here and say that the long-term point about top hypergrowth stocks is that eventually, the earnings will come. Again, to paraphrase Dr. Brown, you must think fourth dimensionally. With that, below are enticing ideas for those investing in hypergrowth sector plays.
Glimpse Group (VRAR)
A sure-to-be-wild opportunity among top hypergrowth stocks, Glimpse Group (NASDAQ:VRAR) carries a market capitalization of $56.2 million. So, it’s just a bit over the $50 million limit that would make VRAR qualify as a nano-cap play. That’s not necessarily a good thing. However, VRAR being so miniscule theoretically gives you massive room to run in case a bullish wave materializes.
According to its public profile, Glimpse is a diversified virtual reality and augmented reality platform company. It comprises of multiple VR/AR software and service companies. As well, the parent company was designed with the specific purpose of cultivating individual firms in the emerging VR and AR industries. Since the beginning of this year, VRAR gained nearly 34% of equity value, offering a respectable performance for those interested in the future of technology industry applications.
As you can imagine, Glimpse isn’t consistently profitable, suffering from deeply negative trailing-year operating and net margins. At the same time, it features a three-year revenue growth rate of 81.9%, beating out 97.13% of its peers. Notably, EF Hutton’s Michael Albanese pegs VRAR a buy with a $7 price target. Reaching that point implies 80% upside potential.
My Size (MYSZ)
An omnichannel e-commerce platform and provider of artificial intelligence-driven apparel sizing and digital experience solutions, My Size (NASDAQ:MYSZ) ranks among the practical ideas for top hypergrowth stocks. Along with e-commerce and apparel, My Size features applications for the shipping, parcel delivery and do-it-yourself (DIY) industries. However, it’s an extremely risky idea, with shares down nearly 61% since the Jan. opener.
Also, based on the latest exchange rate, My Size features a market cap less than $2 million. So, if you’re interested in investing in hypergrowth sector ideas, MYSZ qualifies as an enticing narrative. However, you must do your homework because this asset can get incredibly volatile.
Conspicuously, the company suffers from an Altman Z-Score of 11.33 below zero, indicating extremely high risk of bankruptcy in the next two years. However, it also prints a three-year revenue growth rate of 72%. Interestingly, H.C. Wainwright’s Kevin Dede weighed in, estimating that MYSZ can hit $3 per share. If so, we’re talking upside of nearly 173%.
Nogin (NOGN)
Based in Tustin, California, Nogin (NASDAQ:NOGN) may offer a speculative idea for hypergrowth stocks to buy. However, investors will be taking extreme risks. For one thing, the company only carries a market cap of $11.65 million. As well, shares trade hands for a nickel above a dollar. Most worryingly from a snapshot perspective, NOGN cratered more than 93% since the start of the year.
If that wasn’t enough pain, shares also gave up over 99% of equity value in the trailing year. Still, Nogin puts on a brave face, providing enterprise-class tech plus expert services to help its clients win in the direct-to-consumer (D2C) arena.
Marketing glitz aside, Nogin’s financials present obvious concerns. Its balance sheet is terrible, laden with high debt. Also, the company’s trailing-year operating and net margins sit deeply in negative territory. Still, typical of high potential tech stocks, Nogin is a growth machine. Right now, it prints a three-year sales expansion rate of 46.4%.That’s not all. Alliance Global Partners’ Brian Kinstlinger believes shares will hit $3.50 a pop. If so, you can ring up over 233% of upside.
AmpliTech (AMPG)
An enticing but also wildly risky name among top hypergrowth stocks, AmpliTech (NASDAQ:AMPG) designs, develops and manufactures custom and standard state-of-the-art radio frequency components for the domestic and international markets. In addition, it offers services to the defense sector and the broader space economy. Since the start of the year, AMPG gained over 15% of equity value.
Now, against the trailing year, shares slipped about 6%. Also, bear in mind that AmpliTech carries a market cap of just over $23 million. If you’re not targeting high potential tech stocks, you may want to consider something safer. That said, Amplitech does enjoy a surprisingly solid balance sheet, highlighted by a cash-to-debt ratio of 2.37 times. That’s better than 61% of the competition.
Also, as with the other hypergrowth stocks on this list, it lives up to the namesake label. Right now, the company prints a three-year sales expansion rate of 42.7%, outflanking 96% of the competition. Looking to Wall Street, Maxim Group’s Jack Vander Aarde believes AMPG will hit $8 per share. Hitting such a lofty target will yield upside of nearly 235%.
Peraso (PRSO)
A literal penny stock, only extreme speculators who have pocket change they don’t know what to do with should consider Peraso (NASDAQ:PRSO). Not only that, the company carries a measly market cap of $8.2 million. This is one of those ideas for hypergrowth stocks that warrant caveats and warnings up the wazoo. Not surprisingly, since the start of the year, PRSO collapsed to the tune of 47%.
In the past 365 days, the security cratered 80%. Still, market gamblers may find it difficult to overlook the relevance. As a pioneer in high-performance 5G mmWave wireless technology, Peraso supports various applications, including fixed wireless access, immersive video and factory automation. From a narrative perspective, PRSO aligns with the search for the future of technology industry ideas.
Unfortunately, Peraso carries the typical flaws associated with hypergrowth stocks, particularly negative operating and net margins. Nevertheless, prospective speculators will note the three-year revenue growth rate of 205.3%, above 99.54% of the competition. Turning to the Street, Benchmark’s David Williams believes PRSO will hit $1.50 per share. Under this dream scenario, stakeholders will reap a return of nearly 283%.
SpringBig (SBIG)
Headquartered in Boca Raton, Florida, SpringBig (NASDAQ:SBIG) bills itself as the leading cannabis marketing platform. Per its website, the company delivers increased retention, lifted revenue streams, enhanced customer loyalty metrics and smarter cannabis marketing campaigns. On surface level, SBIG might seem an intriguing idea among top hypergrowth stocks and it could very well be. Still, heavy risks abound.
First, you’re dealing with a literal penny stock, with shares trading hands at 38 cents a pop. In terms of market cap, we’re talking only a bit over $15 million. And since the start of the year, SBIG declined more than 25%. In the trailing one-year period, SpringBig fell big, hemorrhaging over 77%.
As investment data aggregator Gurufocus warns, SBIG suffers multiple red flags. These include the continued issuance of long-term debt and an enterprise falling into distress. At the same time, SpringBig’s three-year revenue growth rate stands at 74%, outpacing 96.2% of its peers. Interestingly, analysts peg SBIG as a moderate buy. Their average price target lands at $1.75, implying almost 338% upside potential.
Society Pass (SOPA)
If you’re interested in symmetry in your hypergrowth stocks, Society Pass (NASDAQ:SOPA) has an interesting profile for you. Since the beginning of the year, SOPA gave up exactly 50% of equity value. As of the close of the July 18 session, SOPA ended the day at 50 cents per share. I didn’t say it was an attractive symmetry, just that one existed.
Obviously, we’re dealing with yet another high-risk, high-reward enterprise. At the moment, Society Pass carries a market cap just under $14 million. According to the company’s website, Society is building the next-generation digital ecosystem and loyalty platform in Southeast Asia. Given that this region’s internet economy may hit a valuation of $330 billion by 2025, SOPA may be justifiably intriguing.
Unfortunately, the same can’t quite be said about its financials, which suffer from negative profit margins. Still, Society prints a cash-to-debt ratio of 7.91X, better than 63% of its peers. And its three-year revenue growth rate clocks in at a massive 513.6%. On a final note, analysts peg SOPA as a moderate buy. Their average price target stands at $3.13, implying over 532% upside potential.
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.