Our Stock Picks That Doubled Shareholders’ Money In 2021
As we wrap up this year, here’s a look at our stock picks of 2021 that have made triple-digit gains in less than a year.
The spread of COVID-19, emergence of the Delta variant and supply-chain woes have all taken a toll on the stock market. Amid these multiple hardships, several of our stock picks have fared well by yielding up to 381% returns to shareholders.
Looking ahead, companies with strong earnings growth potential could be good investment options in 2022, amid the new Omicron variant which is taking hold around the world.
We published about 180 stocks between January 2021 and December 2021 in our premium services sections – ‘Short-Term Investor’ and ‘Small Stocks – Big Potential’. Some have already more than doubled in 2021. Several of these stocks are primed to take off next year amid accelerating economic recovery.
Some of our top picks that logged triple-digit gains this year were Upstart Holdings Inc. (UPST), iRhythm Technologies Inc. (IRTC), Datadog Inc. (DDOG), Lucid Group Inc. (LCID), Unity Software Inc. (U), Ambarella Inc. (AMBA), DoorDash Inc. (DASH), Bloom Energy Corp. (BE), 3D Systems Corp. (DDD), and Mimecast Ltd. (MIME).
Let us take a look at some of the top performers of 2021 so far!
The shares of Upstart Holdings Inc. (UPST) have had an impressive price rally this year. We profiled this cloud-based AI lending platform provider on March 18, 2021 at an opening price of $83.54, yielding around 105.7% in just 50 trading days. The stock further soared and reached an all-time high of $401.49 on October 15, 2021, representing a gain of over 380% from our published price.
The San Mateo, California-based company Upstart, on December 9, 2021, announced a partnership with the National Bankers Association to improve access to affordable credit for customers of minority-owned depository institutions or MDIs through a unique agreement to use Upstart’s AI lending platform.
The company projects Q4 revenue in the range of $255 million – $265 million, with net income of $16 million – $20 million, and adjusted net income of $48 million – $50 million. Seven Wall Street analysts currently expects revenue of $262.84 million for the quarter.
Another stock pick worth mentioning is iRhythm Technologies Inc. (IRTC). It has returned over 158% in just 62 trading days. We alerted this stock to our subscribers on August 6, 2021 at a price of $49.35. The stock reached an intra-day high of $127.61 on November 3, 2021, representing a gain of 158.6% from our published price.
Based on unforeseen ongoing impacts from the COVID-19 Delta variant, customer staffing challenges and delayed new account launches and expansion, the company has lowered its full-year revenue guidance.
The company now expects revenue to range from $317 million to $319 million for the full year 2021, representing year over year growth of about 20%. This compares to previous revenue guidance of $320 million – $325 million. Ten Wall Street analysts have a consensus revenue estimate of $319.15 million for the year 2021.
Datadog Inc. (DDOG) featured on our ‘Short-Term Investor’ on May 7, 2021 at an opening price of $79.34. The stock reached an all-time high of $199.68 on November 17, 2021, representing a gain of 151.7% from our published price.
What’s In Store For Q4, FY21?
For the fourth quarter, the company expects revenues to be in the range of $290 million – $292 million, which represents 64% year-over-year growth at the midpoint. Non-GAAP operating income is expected to be in the range of $38 million – $40 million, and non-GAAP earnings per share is expected to be between $0.11 and $0.12 per share. Analysts polled by Thomson Reuters currently expect Q4 earnings of $0.12 per share on revenue of $291.48 million. Analysts’ estimate typically exclude certain special items.
For the full year 2021, revenue is expected to be in the range of $993 million – $995 million, which represents a 65% year-over-year growth at the midpoint. Non-GAAP operating income is expected to be in the range of $113 million – $135 million, and non-GAAP earnings per share between $0.39 and $0.40 per share. Wall Street analysts currently estimate earnings of $0.40 per share on revenue of $994.39 million for the year 2021.
Our alert on Lucid Group Inc. (LCID) was published on September 21, 2021 when it was trading around $24.60. The stock reached an intra-day high of $57.75 on November 17, 2021, yielding a return of 134.8% in just 41 trading days.
The company sees significant demand for the Lucid Air, with accelerating reservations as it ramps production at its factory in Arizona. Further, the company remains confident in its ability to achieve 20,000 units in 2022.
Yet another multibagger stock Unity Software Inc. (U) has surged from $89.90 (May 12, 2021) to an all-time high of $210.00 (November 18, 2021) – yielding around 133% return in this period.
Q4, FY21 Guidance
Unity Software sees Q4 revenue in the range of $285 million – $290 million, representing a year-over-year revenue growth of 29% – 32%. Thirteen Wall Street analysts have a consensus revenue estimate of $294.79 million for the quarter.
For fiscal 2021, the company raised its revenue outlook range to $1.080 billion – $1.085 billion, from the previously communicated range of $1.045 billion – $1.060 billion. Sixteen Wall Street analysts look for revenue of $1.09 billion for the year 2021.
Semiconductor solutions provider Ambarella Inc. (AMBA) featured on our ‘Short-Term Investor’ on June 2, 2021 when it was trading around $103.55. The stock reached an all-time high of $227.59 on December 1, 2021, representing a gain of 119.8% from our published price.
Ambarella expects Q4 revenue in the range of $88.5 million – $91.5 million, and non-GAAP Gross margin between 63.0% and 64.0%. Fifteen Wall Street analysts estimate revenue of $90.12 million for the quarter.
May 14, 2021, we identified logistics platform provider DoorDash Inc. (DASH) when it was trading around $124.00. DASH rose to an all-time high of $257.25 on November 15, 2021, marking a gain of 107.5% from our published price.
On December 6, the company introduced ultra-fast grocery deliveries in 10-15 minutes beginning with DashMart in New York City. With over 2,000 items, DashMart offers a wide assortment of fresh and frozen grocery staples, snacks, household goods, and local products to fulfill any last minute shopping needs.
We profiled Bloom Energy Corp. (BE) on October 6, 2021 at $18.04. The stock made our list by yielding a return of over 105% in just 23 trading days. BE rose and touched an intra-day high of $37.01 on November 8, 2021, representing a gain of 105.2% from our published price.
As recently as on December 20, Bloom Energy announced that India’s largest energy conglomerate NTPC Ltd. has selected Bloom’s electrolyzer and hydrogen-powered fuel cell technologies for the country’s first green hydrogen-based energy storage deployment. As part of India’s pledge to reach carbon neutrality by 2070, the project is designed to explore large-scale, off-grid hydrogen energy storage and microgrid projects at strategic locations throughout the country.
3D Systems Corp. (DDD) piqued our interest when it was trading around $20.28 on May 11, 2021. DDD has returned over 104% in just 32 trading days. The stock rose to $41.48 in intraday on June 25, 2021 marking a gain of 104.5% from our published price.
Last month, 3D Systems said it has closed its upsized offering of $460.0 million aggregate principal amount of 0% convertible senior notes due 2026, including $60.0 million of notes issued upon the exercise in full of the initial purchasers’ option to purchase additional notes.
Cyber security Mimecast Ltd. (MIME) featured on our ‘Short-Term Investor’ on May 11, 2021 at an opening price of $42.61. The stock reached an all-time high of $85.48 on November 18, 2021, representing a gain of 100.6% from our published price.
In The Cards for Future…
For the third quarter, the company projects revenue in the range of $149.2 million – $150.7 million and constant currency revenue growth between 13% and 14%.
For the full year 2022, revenue is expected to be in the range of $589.9 million – $593.6 million and constant currency revenue growth is expected to be in the range of 14% – 15%.
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