Don’t miss your chance to lock-in extraordinary gains with these two companies.
For today’s high-growth companies, one of the most important drivers and key areas of focus, is revenue growth.
In fact, many companies will claim that they are more than willing to sacrifice profitability in order to grow revenues as quickly as possible.
Unfortunately, this is a very slippery slope that investors should be wary of.
Sure, there are some businesses that have actually sacrificed near-term profitability to build long-term value (Amazon), but there are also many businesses that don’t.
Anyone can give away a dollar for $0.50 and gain millions of customers, but it doesn’t mean that you’ve actually built a viable business.
If you don’t believe me, just take a look at the MoviePass debacle.
MoviePass was a movie subscription service that charged customers $10 a month for the ability to see one movie a day in luxury seating theaters.
The offer was simply too good to be true… and it was.
The house of cards eventually collapsed when MoviePass filed for bankruptcy in January 2020.
Fortunately, not every high-growth company is following this risky path.
In fact, I know of two companies that are growing at an accelerated pace, but are also generating massive profits. Check these companies out if you’re looking for hypergrowth stocks for 2021.
XPEL, Inc. (NASDAQ:XPEL)
XPEL, Inc. was founded in 1999 and is headquartered in San Antonio, Texas.
The company is a leading provider of protective films, including automotive paint protection film, surface protection film, automotive and commercial/residential window films, and ceramic coatings.
Over the last 12 months, revenues have grown by 29% and over the last 5 years they’ve grown by an average of 33% per year.
Meanwhile, over the last 12 months, book value has grown by 53.5% and over the last 5 years it’s grown by an average of 33.5% per year.
The company is growing earnings very quickly as well.
Over the last 12 months, EPS has grown by 48.8%. And over the last 5 years, EPS has grown roughly 39.6% per year.
Founded in 1989 in Cambridge, Mass., Vertex is a global biotechnology company that has multiple approved medicines that treat the underlying cause of cystic fibrosis (CF) — a rare, life-threatening genetic disease — and has several ongoing clinical and research programs in CF.
The company also has a pipeline of medicines in other serious diseases including pain, alpha-1 antitrypsin deficiency and APOL1-mediated kidney diseases. In addition, Vertex has a rapidly expanding pipeline of genetic and cell therapies for diseases such as sickle cell disease, beta thalassemia, Duchenne muscular dystrophy and type 1 diabetes mellitus.
Over the last 5 years, revenue growth has averaged 43.8% per year, and over the last 12 months they grew by 63.5%.
In terms of book value growth, it has averaged 46.7% over the last 5 years, and over the last 12 months they grew by 53.1%.
The company also achieved profitability in 2017 when it generated $263 million in net income.
Over the TTM, Vertex reported net income of $2.691 billion – which has grown by 923% over the last 3 years.
-Investing Insider Magazine