InvestorPlace contributor names three stocks set to soar 1,000% by 2026
Finding undervalued stocks can generate substantial long-term profits for an investing portfolio, notes Yiannis Zourmpanos, an InvestorPlace contributor and the founder of the stock-market research platform Yiazou Capital Research. He has come out with three cheap stocks with potential for 1,000% growth by 2026. Recently, two of them have significantly boosted their gross profits and margins.
Energy Services of America
With a market capitalization of $116.6 million, Energy Services of America provides construction services for infrastructure projects across various sectors, including the natural gas, petroleum, and automotive industries. In the second quarter of the 2024 fiscal year (ended March 31), the company’s gross profit grew 60% year-over-year to $6.2 million, indicating tight cost control, while an uptick in its gross margin over the same period suggests that the business is becoming more adept at turning sales into real profit, writes Zourmpanos.
Creative Realities
Creative Realities, with a market capitalization of $48.6 million, is in digital marketing, providing digital signage solutions and software. In the first quarter of 2024, the company’s gross profit came in at $5.8 million, up nearly 14% versus the previous year. Its service top line jumped, with a higher percentage of installations in revenue, meaning regular subscription income down the road. The company expects its annual recurring revenue (ARR) in 2024 to reach $20 million, for a nearly 13% year-over-year increase.
On Monday, July 8, Creative Realities announced that as of July 1, its shares had been added to the Russell Microcap Index, which tracks small-capitalization stocks. On Tuesday, July 9, quotes on Creative Realities rose 4.73% to $4.65 per share.
Outlook Therapeutics
Outlook Therapeutics, with a market capitalization of $178.1 million, develops monoclonal antibody-based drugs to treat ophthalmic diseases. The company’s high potential is based on achieving regulatory approval and progressive product launches, explains Zourmpanos. Its main candidate, a bevacizumab-based drug for the treatment of wet age-related macular degeneration (AMD), received marketing approval in the EU in May, with commercial launch expected in 2025. In the US, the drug is still undergoing clinical trials. Recently, the company closed a private placement that raised $172 million, Zourmpanos notes.
