As the stock market continues its perpetual dance, marked by unpredictable highs and lows, wagering on the top hyper-growth stocks could be an interesting contrarian move. Hyper-growth stocks have separated themselves from the pack with their robust top-line growth and an incredibly optimistic outlook among discerning investors. Emerging from the gloomy shadow of the 2022 stock market rout, investors with a high risk-appetite have started gravitating towards growth stocks again. Although 2023 has not yet unfurled into a full-blown bull market, the momentum of these hyper-growth stocks to buy offers an enticing prospect.
Broadening our view of the economic panorama, we see that Inflation has retreated to a comforting two-year low of 4.9%. This downward trend is nudging the Federal Reserve towards the possibility of easing interest rates. This potential policy shift bodes well for investing in hyper-growth stocks. With that said, let’s look at seven of the best soaring hyper-growth stocks to buy.
Top Hyper-Growth Stocks: Kinross Gold (KGC)
Kinross Gold (NYSE:KGC) is shining bright in the investment landscape, bolstered by gold prices breaching the $2,000 an-ounce barrier. However, even in the face of static gold prices, KGC could grow at a stellar pace. Tiprank’s analysts have assigned a Moderate Buy rating for the stock, offering more than 15% upside from current levels.
Revenue growth for Kinross has grown at a stellar 41.3% on a year-over-year basis, dwarfing the sector median by more than 500%. Profitability metrics are impressive, too, with it experiencing double-digit growth in trailing twelve-month gross and EBITDA margins. Moreover, it isn’t just a growth story, though. Its attractive dividend yield of more than 2% sweetens the deal, boasting a healthy liquidity buffer of $1.7 billion as of its first quarter. Additionally, stable gold production and an operating cash flow of $259 million in the first quarter of 2023 further add to Kinross’ allure.
Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) stands out in the solar realm due to its powerful, innovative microinverter technology. The goal is to effectively improve the efficiency and reliability of solar power, as its robust microinverters ensure seamless operation even when panel parts are obstructed. Moreover, its portfolio doesn’t end with solar power production, as the company offers robust battery storage systems complete with user-friendly software for monitoring and controlling solar power.
Over the years, Enphase has been a solid growth stock, with revenue growth above 50% in the past five years. Forward sales estimates are at over 40%, as it’s likely to emerge stronger despite the rising costs and the economic slowdown. Its stock of late has been struggling following a flat top-line and margin growth expected in the second quarter. However, this could present an attractive entry point for the resilient investor, with the stock down more than 38% year-to-date.
Chinese automaker BYD (OTCMKTS:BYDDY) is racing ahead of the competition, outperforming the stalwarts in its niche. BYD’s delivery numbers are mighty impressive, setting new records each quarter. Additionally, these achievements aren’t limited to the domestic market, as it has effectively spread its tentacles across other parts of the world.
The Warren Buffet-backed EV giant delivered 264,647 all-electric vehicles, up 85% from the prior-year period in the first quarter. Also, it delivered 283,270 plug-in hybrids, up roughly 100% more than last year. Tesla sold 422,875 all-electric vehicles in its first quarter, and though it has the lead in pure EV sales, BYD is far ahead in electrified vehicles overall.
While many EV manufacturers are vying for a piece of the Chinese market pie, BYD’s sales beyond China’s borders are notably increasing. This upward trajectory underlines its solid long-term growth potential.
Sociedad Quimica y Minera de Chile (SQM)
Sociedad Quimica y Minera de Chile (NYSE:SQM) is a Chilean specialty chemicals giant that has successfully solidified its positioning in the annals of lithium production. Its strategic positioning as a top-tier battery manufacturer is hard to ignore as it effectively draws from Chile’s abundant lithium reserves and a conducive business environment.
SQM’s financial performance over the past decade is nothing short of spectacular. Sales growth in the past decade has surged over 350%, propelling the firm to an impressive $10.7 billion benchmark last year. The rocketing sales figures can be credited to the company’s lithium business, which has been growing by triple-digit margins in the past several quarters.
Furthermore, SQM’s incredible fundamentals and remarkable track record underline its attractiveness as a growth stock. As its strategic importance continues to grow, SQM’s prospects are set to shine even brighter.
Palo Alto Networks (PANW)
Palo Alto Networks (NASDAQ:PANW holds its own with its unique portfolio of network security solutions for the burgeoning cybersecurity industry. The burgeoning cybersecurity industry is valued at a whopping $193 billion, is could potentially skyrocket to $534 billion by 2030, representing an 11% CAGR. Despite operating in a hotly competitive space, PANW has an impressive arsenal of over 700 cybersecurity patents, equipping it with diverse products and solutions.
Palo Alto Networks has been on a strategic expansion spree, absorbing over a dozen cloud-native enterprises. This has markedly transformed its security operations, pushing its next-gen security portfolio to deliver sustained growth in the cloud era.
Given its stature as the largest pure-play cybersecurity operation in terms of revenue and market capitalization, Palo Alto Networks enjoys a commanding industry presence. Furthermore, its shares are favorably priced relative to competitors, despite gaining more than 45% year-to-date, making it an attractive investment proposition.
iGaming giant DraftKings (NASDAQ:DKNG) is fresh from its first-quarter earnings report, which left no doubt about its hyper-growth status. The online betting company’s first quarter metrics showed a staggering $770 million in revenues, representing an 85% hike over the $417 million garnered in the prior-year period. Also, the figure exceeded Wall Street’s projections, surpassing the expected $704 million.
DraftKings’ losses also pleasantly surprised, narrowing significantly more than analyst expectations. The recorded 51 cents losses per share sharply contrasted with the predicted 70-cent losses. The firm’s promising financial landscape, marked by shrinking losses and growing revenues, sets it on a rapid course towards breakeven. DraftKings expects about $3.2 billion as the midpoint of its revenue guidance, translating into a striking annual growth rate of more than 42%.
The Trade Desk (TTD)
The Trade Desk (NASDAQ:TTD) is a leading player in the tech advertising space, continuing to turn heads with its spectacular performance. The firm operates a self-service platform, empowering advertisers to optimize their digital marketing campaigns across multiple channels, including connected TV, video, audio, mobile, and others. Despite the challenges posed by the pandemic, The Trade Desk has shown remarkable resilience, maintaining its profitability while sustaining strong growth.
The stock has been on a steady upward trajectory, up more than 40% since the beginning of the year. Furthermore, it comfortably beat the company’s top- and bottom-line estimates on both lines in the first quarter, with a year-over-year revenue increase of over 21%. Additionally, its guidance for the second quarter points to $452 million in sales, significantly exceeding consensus expectations of $445.6 million. The Trade Desk’s incredible start to 2023 is a testament to the growing value marketers see in its tremendous value proposition.
On the date of publication, Muslim Farooque 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.