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5 Best Stocks with High Growth Potential to Invest in Now

The top stocks with high growth potential to invest in are innovating for a better future. Here are the top five.
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After falling for seven straight weeks, the stock market finally saw some relief last week. Stocks with high growth potential are catching a bid from investors as they look to scoop up cheap shares.

Despite many calls for a bear market, the market rallied after last week’s Fed minutes. Will the rally turn into a bear market bounce? Or is this the start of another bull run? There are strong advocates on both sides with compelling arguments.

For one thing, inflation is near 40-year highs, the war in Ukraine is intensifying, and companies are reporting higher costs with changing consumer behavior.

At the same time, the job market is strong, consumers are still spending, and inflation may be peaking. Meanwhile, earnings season is showing us consumer habits are shifting as inflation cuts into budgets.

For many companies, the shift will drastically affect sales. On the other hand, below are stocks with high growth potential expected to expand operations while leading their market to new heights.

Top Stocks with High Growth Potential

Economic downturns can cause some businesses to close their doors when not prepared. For example, well-known companies like JCPenney and Hertz car rental filed for bankruptcy during the pandemic.

However, it also creates the opportunity for change. Some of the most innovative companies are born as a result. What made companies successful before may not work as well from now on. Therefore, companies prioritizing innovation have a better chance of capturing the changing consumer demands.

Finally, the top stocks with high growth potential to invest in are innovating for a better future. Below are the top five.

No. 5 ChargePoint (NYSE: CHPT)

  • Market: EV Charging
  • YOY EPS Growth: 90%
  • YOY Revenue Growth: 87%

ChargePoint was the first global EV charging company to go public last March. Since then, the company has been progressing the much-needed EV charging network.

With global EV sales doubling this past year, charging ports are more needed than ever. So far, ChargePoint has over 174K ports and 300K total available with roaming.

In fact, the company ranks No. 3 in Fast Company’s World’s Most Innovative Companies in North America this year. With a first-mover advantage and ports that fits most EV types, the company looks to be on a path to sustained growth.

Lastly, the Infrastructure Investment and Jobs Act designates $15 billion EVs, with $7.5 billion for building a charging network. This sum can help fuel ChargePoint’s expansion to support the growing need for EVs.

No. 4 Alphabet (Nasdaq: GOOGL)

  • Market: Search/Video/Ads
  • YOY EPS Growth: -6%
  • YOY Revenue Growth: 23%

As the world’s largest search engine (+85% market share), it only makes sense Google generates the most ad revenue. In fact, in the first quarter, Google advertising grew another +20%($54.6 billion) as companies continue moving online.

Though EPS fell in Q1, much of the blame is due to losses from the company’s Other Bets segment, including Waymo (Self-Driving) and Wing (Drone Delivery).

Most importantly, Google-owned YouTube continues to dominate the short video streaming market. According to a study from Nielson, YouTube makes up over 50% of ad-supported streaming time for people over 18.

Lastly, GOOGL stock is down almost 26% from its ATH of $3030 per share. As a result, Google is trading at a discount compared to other mega-cap companies by nearly every metric.

Keep reading for more info on stocks with high growth potential.

No. 3 Airbnb (Nasdaq: ABNB)

  • Market: Vacation Rentals
  • YOY EPS Growth: 98%
  • YOY Revenue Growth: 70%

With the pandemic fading and travel restrictions being lifted, Airbnb is back in business. But the company is more than a vacation rental company. Airbnb is also a tech company, connecting hosts with guests through its platform.

At this point, the name Airbnb is essentially synonymous with vacation rentals. For this reason, guests feel more comfortable staying with a well-known brand.

Evidently, the brand awareness is paying off with over 100 million nights booked for the first time in Q1, well above pre-pandemic levels. Not only that, but Gross Booking Value is also up 73% from 2019 levels, showing the businesses resiliency.

As we see from retail earnings, high-income spenders are still spending. So, even if the economy slows, Airbnb looks to be one of the best stocks with high growth potential in the long run.

No. 2 Livent Corp (NYSE: LTHM)

  • Market: Lithium
  • YOY EPS Growth: 950%
  • YOY Revenue Growth: 56%

Livent Corp produces lithium for several uses, including EV batteries. With demand for lithium soaring, prices are up close to 500% in the past year.

Furthermore, the demand doesn’t look to be slowing anytime soon as the demand for EVs heats up. For instance, in 2021, lithium demand was around 500K metric tons, while by 2030, it expects to reach 3-4 million. By 2030, the global demand for lithium expects to grow by up to 700%. As a result, Livent is seeing its earnings grow significantly, with adjusted EBITDA almost doubling from last quarter.

Lastly, the company is fueling expansion with several new projects on the radar. First, its new U.S. plant expects to add 5,000 metric tons, complete in Q3/Q4. Then, an expansion in Argentina expects to add 20K metric tons, with Phase B anticipated by Q4 2023.

And this is only the start. Livent plans to add another 85K metric ton lithium capacity by 28-’29.

Stocks with High Growth Potential No. 1 Nvidia (Nasdaq: NVDA)

  • Market: Semiconductors
  • YOY EPS Growth: 49%
  • YOY Revenue Growth: 46%

Looking at Nvidia’s stock chart, you would think the company is losing business. Yet, in the first quarter, Nvidia set a new quarterly revenue record with $8.29 billion.

Despite losing over 45% of its value since hitting an ATH of $346 in November, Nvidia is showing resiliency during a challenging economic environment.

Nvidia’s growth is fueled by demand for gaming chips and business automation. In fact, both Gaming and Data Center set new records as Data Center becomes the company’s largest segment.

Nvidia continues building momentum as it outpaces peers with its cloud business. On top of this, with several new revenue opportunities in software (Auto, Omniverse, etc.) Nvidia’s addressable market continues swelling.

Finally, every Nvidia business segment’s revenue has grown over the past year, in some instances significantly. For example, Gaming +119%, Data Center +114% and Pro Visualization +206%.

Is Now the Time to Buy Stocks with High Growth Potential?

With the market bouncing this week, investors are wondering, is now the time to buy stocks with high growth potential?

For one thing, the stocks above are leaders in their respective industries. Not only that, they are industries in high demand right now. So, to answer the question, it comes down to your investing time frame.

These are some of the top stocks with high growth potential money can buy for long-term investors.

But, with the Federal Reserve set on cooling inflation and no end to the war in Ukraine, expect more volatility ahead. Additionally, even though the market has given back some returns from the past few years, it’s still overvalued by some measures. For example, the current PE Ratio of the S&P 500 (SPX) is 21 currently, compared to a historical average of 15.97.

At the same time, technology is being developed faster than ever, boosting valuations while acting as a “deflationary” tool. With this in mind, these companies are innovators taking advantage of current trends. Look for them to continue building momentum as we advance, solidifying their positions as industry leaders.

The post 5 Best Stocks with High Growth Potential to Invest in Now appeared first on Investment U.

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Four burning questions about the future of the $16.5B Novo-Catalent deal

To build or to buy? That’s a classic question for pharma boardrooms, and Novo Nordisk is going with both.
Beyond spending billions of dollars to expand…

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To build or to buy? That’s a classic question for pharma boardrooms, and Novo Nordisk is going with both.

Beyond spending billions of dollars to expand its own production capacity for its weight loss drugs, the Danish drugmaker said Monday it will pay $11 billion to acquire three manufacturing plants from Catalent. It’s part of a broader $16.5 billion deal with Novo Holdings, the investment arm of the pharma’s parent group, which agreed to acquire the contract manufacturer and take it private.

It’s a big deal for all parties, with potential ripple effects across the biotech ecosystem. Here’s a look at some of the most pressing questions to watch after Monday’s announcement.

Why did Novo do this?

Novo Holdings isn’t the most obvious buyer for Catalent, particularly after last year’s on-and-off M&A interest from the serial acquirer Danaher. But the deal could benefit both Novo Holdings and Novo Nordisk.

Novo Nordisk’s biggest challenge has been simply making enough of the weight loss drug Wegovy and diabetes therapy Ozempic. On last week’s earnings call, Novo Nordisk CEO Lars Fruergaard Jørgensen said the company isn’t constrained by capital in its efforts to boost manufacturing. Rather, the main challenge is the limited amount of capabilities out there, he said.

“Most pharmaceutical companies in the world would be shopping among the same manufacturers,” he said. “There’s not an unlimited amount of machinery and people to build it.”

While Novo was already one of Catalent’s major customers, the manufacturer has been hamstrung by its own balance sheet. With roughly $5 billion in debt on its books, it’s had to juggle paying down debt with sufficiently investing in its facilities. That’s been particularly challenging in keeping pace with soaring demand for GLP-1 drugs.

Novo, on the other hand, has the balance sheet to funnel as much money as needed into the plants in Italy, Belgium, and Indiana. It’s also struggled to make enough of its popular GLP-1 drugs to meet their soaring demand, with documented shortages of both Ozempic and Wegovy.

The impact won’t be immediate. The parties expect the deal to close near the end of 2024. Novo Nordisk said it expects the three new sites to “gradually increase Novo Nordisk’s filling capacity from 2026 and onwards.”

As for the rest of Catalent — nearly 50 other sites employing thousands of workers — Novo Holdings will take control. The group previously acquired Altasciences in 2021 and Ritedose in 2022, so the Catalent deal builds on a core investing interest in biopharma services, Novo Holdings CEO Kasim Kutay told Endpoints News.

Kasim Kutay

When asked about possible site closures or layoffs, Kutay said the team hasn’t thought about that.

“That’s not our track record. Our track record is to invest in quality businesses and help them grow,” he said. “There’s always stuff to do with any asset you own, but we haven’t bought this company to do some of the stuff you’re talking about.”

What does it mean for Catalent’s customers? 

Until the deal closes, Catalent will operate as a standalone business. After it closes, Novo Nordisk said it will honor its customer obligations at the three sites, a spokesperson said. But they didn’t answer a question about what happens when those contracts expire.

The wrinkle is the long-term future of the three plants that Novo Nordisk is paying for. Those sites don’t exclusively pump out Wegovy, but that could be the logical long-term aim for the Danish drugmaker.

The ideal scenario is that pricing and timelines remain the same for customers, said Nicole Paulk, CEO of the gene therapy startup Siren Biotechnology.

Nicole Paulk

“The name of the group that you’re going to send your check to is now going to be Novo Holdings instead of Catalent, but otherwise everything remains the same,” Paulk told Endpoints. “That’s the best-case scenario.”

In a worst case, Paulk said she feared the new owners could wind up closing sites or laying off Catalent groups. That could create some uncertainty for customers looking for a long-term manufacturing partner.

Are shareholders and regulators happy? 

The pandemic was a wild ride for Catalent’s stock, with shares surging from about $40 to $140 and then crashing back to earth. The $63.50 share price for the takeover is a happy ending depending on the investor.

On that point, the investing giant Elliott Investment Management is satisfied. Marc Steinberg, a partner at Elliott, called the agreement “an outstanding outcome” that “clearly maximizes value for Catalent stockholders” in a statement.

Elliott helped kick off a strategic review last August that culminated in the sale agreement. Compared to Catalent’s stock price before that review started, the deal pays a nearly 40% premium.

Alessandro Maselli

But this is hardly a victory lap for CEO Alessandro Maselli, who took over in July 2022 when Catalent’s stock price was north of $100. Novo’s takeover is a tacit acknowledgment that Maselli could never fully right the ship, as operational problems plagued the company throughout 2023 while it was limited by its debt.

Additional regulatory filings in the next few weeks could give insight into just how competitive the sale process was. William Blair analysts said they don’t expect a competing bidder “given the organic investments already being pursued at other leading CDMOs and the breadth and scale of Catalent’s operations.”

The Blair analysts also noted the companies likely “expect to spend some time educating relevant government agencies” about the deal, given the lengthy closing timeline. Given Novo Nordisk’s ascent — it’s now one of Europe’s most valuable companies — paired with the limited number of large contract manufacturers, antitrust regulators could be interested in taking a close look.

Are Catalent’s problems finally a thing of the past?

Catalent ran into a mix of financial and operational problems over the past year that played no small part in attracting the interest of an activist like Elliott.

Now with a deal in place, how quickly can Novo rectify those problems? Some of the challenges were driven by the demands of being a publicly traded company, like failing to meet investors’ revenue expectations or even filing earnings reports on time.

But Catalent also struggled with its business at times, with a range of manufacturing delays, inspection reports and occasionally writing down acquisitions that didn’t pan out. Novo’s deep pockets will go a long way to a turnaround, but only the future will tell if all these issues are fixed.

Kutay said his team is excited by the opportunity and was satisfied with the due diligence it did on the company.

“We believe we’re buying a strong company with a good management team and good prospects,” Kutay said. “If that wasn’t the case, I don’t think we’d be here.”

Amber Tong and Reynald Castañeda contributed reporting.

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Petrina Kamya, Ph.D., Head of AI Platforms at Insilico Medicine, presents at BIO CEO & Investor Conference

Petrina Kamya, PhD, Head of AI Platforms and President of Insilico Medicine Canada, will present at the BIO CEO & Investor Conference happening Feb….

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Petrina Kamya, PhD, Head of AI Platforms and President of Insilico Medicine Canada, will present at the BIO CEO & Investor Conference happening Feb. 26-27 at the New York Marriott Marquis in New York City. Dr. Kamya will speak as part of the panel “AI within Biopharma: Separating Value from Hype,” on Feb. 27, 1pm ET along with Michael Nally, CEO of Generate: Biomedicines and Liz Schwarzbach, PhD, CBO of BigHat Biosciences.

Credit: Insilico Medicine

Petrina Kamya, PhD, Head of AI Platforms and President of Insilico Medicine Canada, will present at the BIO CEO & Investor Conference happening Feb. 26-27 at the New York Marriott Marquis in New York City. Dr. Kamya will speak as part of the panel “AI within Biopharma: Separating Value from Hype,” on Feb. 27, 1pm ET along with Michael Nally, CEO of Generate: Biomedicines and Liz Schwarzbach, PhD, CBO of BigHat Biosciences.

The session will look at how the latest artificial intelligence (AI) tools – including generative AI and large language models – are currently being used to advance the discovery and design of new drugs, and which technologies are still in development. 

The BIO CEO & Investor Conference brings together over 1,000 attendees and more than 700 companies across industry and institutional investment to discuss the future investment landscape of biotechnology. Sessions focus on topics such as therapeutic advancements, market outlook, and policy priorities.

Insilico Medicine is a leading, clinical stage AI-driven drug discovery company that has raised over $400m in investments since it was founded in 2014. Dr. Kamya leads the development of the Company’s end-to-end generative AI platform, Pharma.AI from Insilico’s AI R&D Center in Montreal. Using modern machine learning techniques in the context of chemistry and biology, the platform has driven the discovery and design of 30+ new therapies, with five in clinical stages – for cancer, fibrosis, inflammatory bowel disease (IBD), and COVID-19. The Company’s lead drug, for the chronic, rare lung condition idiopathic pulmonary fibrosis, is the first AI-designed drug for an AI-discovered target to reach Phase II clinical trials with patients. Nine of the top 20 pharmaceutical companies have used Insilico’s AI platform to advance their programs, and the Company has a number of major strategic licensing deals around its AI-designed therapeutic assets, including with Sanofi, Exelixis and Menarini. 

 

About Insilico Medicine

Insilico Medicine, a global clinical stage biotechnology company powered by generative AI, is connecting biology, chemistry, and clinical trials analysis using next-generation AI systems. The company has developed AI platforms that utilize deep generative models, reinforcement learning, transformers, and other modern machine learning techniques for novel target discovery and the generation of novel molecular structures with desired properties. Insilico Medicine is developing breakthrough solutions to discover and develop innovative drugs for cancer, fibrosis, immunity, central nervous system diseases, infectious diseases, autoimmune diseases, and aging-related diseases. www.insilico.com 


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Another country is getting ready to launch a visa for digital nomads

Early reports are saying Japan will soon have a digital nomad visa for high-earning foreigners.

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Over the last decade, the explosion of remote work that came as a result of improved technology and the pandemic has allowed an increasing number of people to become digital nomads. 

When looked at more broadly as anyone not required to come into a fixed office but instead moves between different locations such as the home and the coffee shop, the latest estimate shows that there were more than 35 million such workers in the world by the end of 2023 while over half of those come from the United States.

Related: There is a new list of cities that are best for digital nomads

While remote work has also allowed many to move to cheaper places and travel around the world while still bringing in income, working outside of one's home country requires either dual citizenship or work authorization — the global shift toward remote work has pushed many countries to launch specific digital nomad visas to boost their economies and bring in new residents.

Japan is a very popular destination for U.S. tourists. 

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This popular vacation destination will soon have a nomad visa

Spain, Portugal, Indonesia, Malaysia, Costa Rica, Brazil, Latvia and Malta are some of the countries currently offering specific visas for foreigners who want to live there while bringing in income from abroad.

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With the exception of a few, Asian countries generally have stricter immigration laws and were much slower to launch these types of visas that some of the countries with weaker economies had as far back as 2015. As first reported by the Japan Times, the country's Immigration Services Agency ended up making the leap toward a visa for those who can earn more than ¥10 million ($68,300 USD) with income from another country.

The Japanese government has not yet worked out the specifics of how long the visa will be valid for or how much it will cost — public comment on the proposal is being accepted throughout next week. 

That said, early reports say the visa will be shorter than the typical digital nomad option that allows foreigners to live in a country for several years. The visa will reportedly be valid for six months or slightly longer but still no more than a year — along with the ability to work, this allows some to stay beyond the 90-day tourist period typically afforded to those from countries with visa-free agreements.

'Not be given a residence card of residence certificate'

While one will be able to reapply for the visa after the time runs out, this can only be done by exiting the country and being away for six months before coming back again — becoming a permanent resident on the pathway to citizenship is an entirely different process with much more strict requirements.

"Those living in Japan with the digital nomad visa will not be given a residence card or a residence certificate, which provide access to certain government benefits," reports the news outlet. "The visa cannot be renewed and must be reapplied for, with this only possible six months after leaving the countr

The visa will reportedly start in March and also allow holders to bring their spouses and families with them. To start using the visa, holders will also need to purchase private health insurance from their home country while taxes on any money one earns will also need to be paid through one's home country.

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