Looking for hypergrowth stocks to buy? You’re at the right place. The stocks I’ll be discussing today exhibit compound annual growth rates exceeding 40%. Each is also reasonably well established, with share prices in the $10 to $15 range.
I’ve chosen that price range because these shares are relatively well established. Although there are dozens of hypergrowth stocks between $1 to $5, they are much less stable overall. The three companies analyzed below have comparatively longer track records and are less likely to result in investor losses.
Finally, each of the companies produces or is very close to producing overall earnings. Hypergrowth companies very often produce large losses, but that is not the case for any of these hypergrowth stocks to buy.
Hypergrowth Stocks to Buy: QuickLogic (QUIK)
QuickLogic (NASDAQ:QUIK) is a fabless semiconductor firm that sells field-programmable gate arrays (FPGAs). FPGAs are chips that can be reconfigured after manufacturing to meet specific use cases.
They are particularly in demand because of their utility concerning artificial intelligence. Both GPUs, like those Nvidia (NASDAQ:NVDA) sells, and FPGAs can execute an AI algorithm faster than a CPU. In specific AI applications, FPGAs offer distinct advantages over GPUs.
So, their reprogrammable nature and superior AI application in certain cases make FPGAs highly sought after.
That general narrative favors QuickLogic as a strong investment moving forward. Meanwhile, the company is currently doing quite well on a fundamental basis. Q1 revenues grew by over 40%, reaching $6 million.
The stock also benefits from strong annual growth over the past several years and nearly reached overall profitability in 2023. QuickLogic produced $0.1 million in net income during the first quarter.
Ermenegildo Zegna (ZGN)
Ermenegildo Zegna (NYSE:ZGN) is a luxury men’s wear fashion brand whose stock is well worth buying.
The company reported fiscal year 2023 results showing that revenues grew by 27.6% overall. While that level of growth does not qualify the company to be considered a hypergrowth firm, its earning growth does. Net income grew by 136% in 2023 at Ermenegildo Zegna. The important thing to note from an investment perspective is that the company has now reported two consecutive years of overall profitability.
There’s a certain level of stability inherent in that. Meanwhile, Ermenegildo Zegna increased its dividend by more than 21% throughout 2023.
Based on those previous two factors, the company appears to be pivoting into a period of greater stability overall. What I particularly like about the company, aside from the things I just mentioned, is its increasing gross margins. Ermenegildo Zegna benefits from strong pricing advantages, and the company looks to be entering a period of profitable growth that will make its stock much more valuable.
Silver Spike Investment Corp. (SSIC)
Silver Spike Investment (NASDAQ:SSIC) is a relatively unknown stock representing a company focused on investing across the cannabis ecosystem. Shares have grown in value by nearly 39% year to date.
It has also experienced hypergrowth over the past few years. In 2021, the company reported $10,000 in annual revenue. That figure grew to $4.05 million in 2022 and ballooned to $11.72 million in 2023.
Silver Spike Investment reported net income in each of the past two years. The company isn’t simply experiencing hypergrowth; it is doing so while providing real earnings to investors.
Silver Spike Investment’s balance sheet shows assets exceeding $90 million and liabilities of less than $6 million. SSIC stock includes a dividend of 25 cents payable to shareholders of record by June 20. Unless they opt out, the company reinvests that dividend for its shareholders under a dividend reinvestment plan (DRIP).
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Alex Sirois 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.