When it comes to growth stocks, the rally can be ferocious. And while we are not in the euphoria of 2021 when stocks delivered multi-bagger returns in a matter of weeks, there are dozens of growth stocks that have surged over 100% in a matter of few months. For example, Miniso Group (NYSE:MNSO) stock is just one name on my radar that has skyrocketed 142% year-to-date.
With four months before the year ends, I believe that there are several attractive growth stocks to consider for quick returns. This column focuses on three growth stocks to buy that can double within the next four months.
Furthermore, I believe that these growth stocks represent companies that have positive business catalysts ahead in 2024. The rally can potentially extend beyond the initial time horizon. For now, though, I am looking specifically at generating some quick returns that magnify my portfolio returns for the year.
Let’s discuss the reasons to be bullish on these growth stocks.
Riot Platforms (RIOT)
In July, crypto-mining company Riot Platforms (NASDAQ:RIOT) stock had touched highs of $20.6. The stock is currently down by almost 47% and trades at $11. I believe that there is a good chance of a strong reversal rally that would take RIOT stock to new highs for the year.
An important point to note is that Bitcoin (BTC-USD) has corrected to $25,000 levels. However, the last quarter of the year is good for asset classes and Bitcoin halving is due in 2024. I expect the digital asset to trade well above $30,000 before the end of the year.
Specific to Riot Platforms, the stock is likely to rally on massive growth plans. The company’s mining capacity was 10.7EH/s as of Q2 2023. The plan is to almost double capacity to 20.1EH/s by Q2 2024. Further, capacity is likely to swell to 35.4EH/s by 2025. Ambitious growth plans coupled with a potential rally for Bitcoin will translate into big upside for RIOT stock.
Polestar Automotive (PSNY)
Since some of the best growth stocks in the EV sector have staged a strong comeback in the first half of 2023, Polestar Automotive (NASDAQ:PSNY) is my top choice for an EV stock poised for a strong reversal rally.
PSNY stock has plunged by 52% in the last 12 months and looks deeply oversold. The valuation gap is the first reason to be positive. Further, there are positive business developments that are impending catalysts.
One notable potential catalyst: I don’t see any further downward revision in deliveries guidance. The company has reiterated its target to deliver 60,000 to 70,000 cars in 2023. The second catalyst is margin improvement on the back of cost cutting and operating leverage. Polestar has guided for gross margin of 4% for the year, and I expect significant improvement in the coming year.
Further to these points, it’s likely that deliveries growth will accelerate in 2024 and beyond. Polestar 2 is expected to commence production in November and Polestar 3 in Q1 2024. These new models will boost growth. With multiple positive catalysts, I expect stock re-rating and a big rally.
Tilray Brands (TLRY)
Cannabis and consumer packaged goods company Tilray Brands (NASDAQ:TLRY) stock has remained depressed in the last few quarters. However, I believe that there are multiple positive business developments. The stock is likely to surge higher from deeply oversold levels.
The first indicator is Tilray’s recent and aggressive acquisition spree. However, the focus is on building a strong portfolio in the alcohol and beverages business. In the coming quarters, this segment is likely to be the growth driver. Further, the acquisitions in the U.S. will also help in building a strong strategic infrastructure. On potential federal level legalization of cannabis, investments can be accelerated.
On the financial front, Tilray reported 6% revenue growth for FY2023 on a year-on-year basis to $668 million. While revenue growth was moderate, the company generated positive operating cash flows. Further, Tilray expects to report positive adjusted free cash flow in the next financial year. With these positives, TLRY stock is likely to double in quick time.
On the date of publication, Faisal Humayun did not hold (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.