MTTR - Who Needs AI? 3 Hyper-Growth Stocks Soaring on Their Own Merits
2024-06-24 06:15:00 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In recent years, stock investors faced heightened volatility. An economic downturn in 2022 erased gains. Last year, the Nasdaq Composite saw a 43% increase due to AI and tech drivers, which broke previous patterns. Although investors are now seeing an 8% increase in 2024, volatility is still certainly the name of the game. Some of the hyper- growth stocks that have soared the most have AI catalysts many don’t necessarily 100% believe in.
That said, there are a number of hyper-growth stocks to buy that don’t require the AI backstory to be successful. These companies can survive and thrive with or without this current market tailwind. Let’s dive into why now may be a reasonable time to consider adding these names.
Celsius Holdings (CELH)
First on the list is Celsius Holdings (NASDAQ: CELH ). Known for developing and selling functional drinks and supplements, this company is one of the hyper-growth stocks to buy over the long term. Its energy drinks are widely popular, driving strong share price appreciation after the company’s Q1 2024 results that exceeded market expectations. Analysts are bullish on the company’s long-term prospects, considering its recent successful partnerships with other soft drink companies.
Celsius’ products are not only your average energy drinks, but they are actually healthy. Its Live Fit drinks contain 90% of Vitamin C, 130% of Riboflavin, and 120% for Vitamin B6. Although the market remains hesitant due to its slowing growth, investors are optimistic due to its strong retail demand.
34 hedge fund portfolios held CELH at the end of Q1, indicating room to run higher. Revenue reached $355.7 million, representing a 37% year-over-year increase. Moreover, a new partnership with Ferrari racing positions Celsius to potentially gain market share in the energy and soft drink industry.
Crocs Inc. (CROX)
Known for their remarkable design and comfort-forward shoes, Crocs (NASDAQ: CROX ) still continues to see strong demand from its customers. Currently, the brand operates in 85 countries and has wholesalers, retail stores, e-commerce platforms, and third-party marketplaces as their platforms. Listed under Nasdaq , the company has robust business and is expected to move well above the $145 per share level, and stay there, moving forward.
The company’s Q1 results highlighted strong demand, with revenue increasing 6% and earnings per share surging 5%. Brand sales reached $744 million despite HEYDUDE revenue falling and reaching only $195 million. However, the company’s brand portfolio is expected to grow 9% in 2024, despite a decline in HEYDUDE.
Currently, the stock is trading at bargain levels. I think this company could be among the most undervalued in its sector right now.
Matterport (MTTR)
Specializing in detailed 3D models bolstered by property tech, Matterport (NASDAQ: MTTR ) is another one of the top hyper-growth stocks to buy. With advancing technologies like Apple’s (NASDAQ: AAPL ) Vision Pro, accessing digital property tours becomes more seamless and appealing particularly to clients in hospitality and commercial real estate sectors.
Recently, the company launched an emissions reporting tool for select enterprise customers, measuring carbon savings from using its digital twin platform. Developed with carbon accounting experts, this platform helps companies understand emissions avoided by remote collaboration. As corporations increasingly commit to reducing their carbon footprint, this tool supports alignment with the UN’s Sustainable Development Goals and science-based climate targets.
In other related news, CoStar Group revealed its acquisition of Matterport primarily for real estate. The acquisition, valued at $1.6 billion, includes a split of cash and stock, offering shareholders $2.75 per share in cash and $2.75 in CoStar Group shares. Matterport had previously gone public through a SPAC in 2021.
On the date of publication, Chris MacDonald did not hold (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.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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