In the dynamic ups and downs of the stock market, identifying stocks for under $20 with significant growth potential is akin to uncovering hidden gems in a vast digital mine. In this exploration, three stocks under $20 emerge as potential giants.
Together, these companies form an intriguing triumvirate, promising a 5x growth trajectory. They invite investors to navigate the complexities of the market and unearth wealth in unexpected corners. Read more to delve into the key insights that make these stocks under $20 really stand out.
Palantir (PLTR)
Palantir’s (NYSE:PLTR) consistent GAAP profitability over four consecutive quarters signifies the company’s financial and strategic strength. Achieving profitability is a significant milestone for Palantir, indicating a sound business model.
To begin with, the topline is that Q3 2023 revenue accelerated with a 17% year-over-year increase and 5% sequential growth. This demonstrates Palantir’s market traction and the increasing demand for its tech platforms. The growth across various business segments, including commercial and government, highlights the company’s diversified revenue streams.
Additionally, the growth in US commercial revenue, with a 13% sequential increase, indicates the effectiveness of Palantir’s go-to-market strategy. The sequential growth indicates the company’s effective execution of its commercial initiatives. The overall commercial business saw a 15% year-over-year increase. Hence, this international growth demonstrates Palantir’s ability to capitalize on growth in Asia and the Middle East.
Finally, Palantir’s net dollar retention of 107% suggests the company can retain and expand relationships with existing customers. Therefore, this positive retention rate reflects the value proposition of Palantir’s solutions, leading to continued value expansion based on increased spending.
ACM Research (ACMR)
ACM Research’s (NASDAQ:ACMR) customer-centric approach and international expansion efforts contribute significantly to its value growth potential. One of the key advantages of ACM Research is its penetration of the Chinese semiconductor market. ACM Research has made significant progress in China, with its tools being used by nearly all semiconductor manufacturers in the country. The sales and service team’s efforts to expand major product lines across the growing customer base solidify ACM Research’s position in the domestic market.
Additionally, ACM Research’s ability to attract new entrants and secure orders from fully funded customers is a testament to its market attractiveness. The company’s sales and service teams effectively engage with existing and potential customers, expanding its footprint in the semiconductor industry.
Finally, ACMR’s increased research investment is strategic, aiming to capture opportunities in both the Chinese and international markets. Therefore, the focus is on new products and on enhancing existing products like cleaning and copper plating to align with emerging technologies such as chiplets and advanced 3D packaging.
Navitas (NVTS)
Navitas (NASDAQ:NVTS) focuses on launching four significant technology platforms, including GaNSafe, Generation 4 Ganfen tapered ICs, Gen-3 Fast with switching performance and bidirectional GaN. These innovations target diverse applications, from AI data centers to electric vehicles, showcasing Navitas’ focus on staying at the forefront of tech advancements.
Moreover, Navitas secured a major win with Samsung, adopting Navitas GaN to power the latest Galaxy S-23. This success contributes to revenue growth in Q3 and Q4, showcasing the company’s ability to establish partnerships with industry leaders. The company’s technology platforms are strategically positioned to address a variety of markets, including solar and energy storage, electric vehicles, data centers and industrial applications. Hence, this diversification minimizes dependency on a single market and positions Navitas for sustained growth.
As of this writing, Yiannis Zourmpanos held long positions in PLTR and ACMR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.