Like anything in life, the greater the (potential) rewards, the more you’ll have to risk and so it is growth stocks to make you rich. Basically, these ideas are more than liable to raise the blood pressure of a traditional financial analyst. If you’re into a conservative, slow-and-steady approach to the market, I have a newsflash for you: these are not the stocks the stocks you’re looking for.
On the other hand, if you’re looking for a significant rejuvenation for the side of your portfolio earmarked for speculation, then yes, these securities just might do the trick. However, you must recognize the severe risk profile. While all the below growth stocks to make you rich feature analyst targets implying over 100% upside, that lofty forecast is far from guaranteed.
Then again, nothing groundbreaking really exists about opportunities that barely return over the pace of inflation. Do you want predictability? Check out these passive income providers. But if you want blistering gains, check out these growth stocks to make you rich.
One of the sad realities of targeting growth stocks to make you rich is their cyclical nature. Just look at SolarEdge Technologies (NASDAQ:SEDG). Amid the housing boom and the subsequent inflationary spike, SolarEdge soared from its 2020 doldrums. However, since the January opener, competitive and economic realities pushed SEDG down a shocking 56%. No doubt about it, it’s an ugly ride.
Still, what might be the saving grace here is sentiment in the derivatives market. Per Fintel’s options flow screener – which exclusively focuses on big block trades likely made by institutions – a major trader wrote (sold) 609 contracts of the Jan 19 ’24 150.00 Put on Aug. 8. Keep in mind that if the countervailing put holder exercises the contract, the put writer is on the hook.
Technically, the key here is open interest, which currently stands at 500 contracts. Yes, that’s lower than the 609 contracts written in August. Still, that’s a sizable open obligation. This possibly suggests that traders are anticipating more downside. However, an unexpected sentiment reversal could shake up the market.
Enticingly, analysts peg SEDG a moderate buy with a $272.50 price target, implying over 117% upside.
CommScope (COMM)
A businessman's hand arranging wooden cube blocks to represent growth stocks. Top Growth Stocks to Buy
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Based in Hickory, North Carolina, CommScope (NASDAQ:COMM) is a network infrastructure provider, focusing on the design and manufacturing of network-related products. Per its public profile, CommScope features four business segments, which cover home, broadband, venue/campus, and outdoor wireless networks. On paper, COMM appears incredibly relevant. Unfortunately, since the January opener, shares hemorrhaged 61% of equity value.
Obviously, that’s not a great performance. At the same time, the red ink provides ample runway as a contrarian source for growth stocks to make you rich. Specifically, the derivatives market again points to an intriguing setup. Per Fintel’s options flow screener, two transactions placed earlier this month stand out: 6,805 contracts bought of the Jan 17 ’25 4.00 Call and 7,003 contracts written (sold) of the Jan 17 ’25 10.00 Call.
Given the high volume and open interest involved, it appears that options traders have facilitated an “opportunity” zone. Basically, major traders anticipate that COMM will shoot past the $4 strike price. Conversely, other market participants believe that COMM will hit a ceiling at $10.
Think of the $4 to $10 zone as a prevent defense that allows the offense to pick up “garbage” yards. Interestingly, analysts see COMM hitting $6.35, a return of over 119%.
Hannon Armstrong (HASI)
A businessman holding a coin with a tree that grows and a tree that grows on a pile of money representing growth stocks. growth stocks
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Structured as a mortgage-based real estate investment trust (REIT), Hannon Armstrong (NYSE:HASI) doesn’t immediately come across as one of the growth stocks to make you rich. Frankly, I wouldn’t even consider it were it not for the fact that analysts see significant upside potential here. Also, Hannon Armstrong issues mortgages on clean energy assets, a compelling growth market.
Naturally, a prime concern for HASI is volatility. Since the beginning of this year, shares lost nearly 46% of their equity value. Even worse, the negative acceleration has been horrific. In the past five sessions, HASI gave up over 29% of its value, driving the price down to $15.42. So, should daring contrarians attempt to catch a falling knife here?
If you’re big into options, the answer might be yes. Turning again to Fintel’s options flow screener, major traders wrote 598 contracts of the Nov 17 ’23 15.00 Put and wrote 1,002 contracts of the Dec 15 ’23 15.00 Put. Presumably, these transactions imply that a floor might exist at the $15 strike.
Also, for good measure, a trader wrote 2,000 contracts of the Mar 15 ’24 10.00 Put. Notably, analysts anticipate HASI to reach $35.67 per share, implying over 131% 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.
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. Tweet him at @EnomotoMedia.