Growth stocks can net some of the largest gains in the market. These corporations feature high top-line growth each year. Some of these companies are profitable or are closing in on that milestone.
While growth stocks can generate the highest gains, they are also the most vulnerable during economic downturns and corrections. Some of them rightfully decline due to excessive valuations and declining revenue; other undeservingly go along for the ride.
Investors can miss out on growth opportunities because these investments don’t receive as much attention. Yet these tend to be more volatile than market indices. However, they still have a lot to offer. These three growth stocks can deliver exceptional gains in the years ahead.
Axcelis Technologies (ACLS)
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Axcelis Technologies (NASDAQ:ACLS) helps companies create effective semiconductors with its ion implantation technology. Investors loaded up on this stock during the artificial intelligence boom. Shares are up by 68% year to date (YTD) and have gained 647% over the past five years.
Despite these gains, ACLS has suddenly become undervalued. Shares are down by over 30% from their all-time high which they reached earlier this year.
The stock’s recent drop looks unjustified. Axcelis Technologies reported a superb third quarter. Revenue increased by 27.6% year over year (YOY) while net income went up by 63.7% YOY.
Many growth stocks lose value despite good financials because they are overvalued. In other words, they have overstretched themselves. This phenomenon does not apply to Axcelis Technologies.
The stock carries a 19 P/E ratio and a 15 forward P/E ratio. Shares lappear promising at current prices. Axcelis Technologies is a small cap with a…
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