That hasn’t deterred investors though who see the stock as one with limitless return potential, giving it a “buy” rating and a $5 fair value estimate. A notable producer of power sports vehicles, the company also provides off-road vehicles, snowmobiles, and motorcycles. The Minnesota-based company has recently had a management shake-up which has led investors to take a bullish stance with its stocks. That being said, the stocks for crude oil have rallied by 155% from a year ago. The company is still the undisputed leader of rig equipment and it would still take a few decades at least before the oil industry is phased out completely. Recovery is definitely in the cards for the company in the future.
Long-term investors should consider that the share prices have increased by 1,261.81% in the last 5 years. A high-risk, high-reward stock is an investment that can significantly outperform the market. These stocks also tend to have notable vulnerabilities, such as an excessive valuation or declining revenue growth. Some of these stocks have high revenue growth but mounting losses. Matador Resources (MTDR, $60.88) is an oil and gas exploration and production company that struggled alongside its fellow energy stocks to start 2023. However, shares are rebounding, and are up nearly 30% since late May.
To be blunt, the performance of the stock year-to-date, over the past 12 months, or even through the last 5 years, is nothing to celebrate. The company is definitely going through some hard times with -14.68% over the last 6 months and a beta rating of 2.27. Know that it’s your duty to yourself to figure out why that stock is high-risk.
Stage Stores (SSI)
I believe that the current $120 million market capitalization of BNGO stock far undervalues the company’s long-term potential. PennantPark is a business development company (BDC) that primarily invests in first-lien secured debt for middle-market companies, as well as owns various equity investments (e.g., preferred stock). In easier-to-understand terms, it typically buys debt backed by assets from publicly traded companies with market caps under $2 billion. However, Enterprise Products Partners is an entirely different breed of oil and gas stock.
- Here are 50 of the highest dividend paying stocks with strong fundamentals.
- Horton (DHI), actually generated gains this year to make the risk worth your while.
- These companies were selected based on the products or services they offer.
- As of now, there are most likely limits to allocations to Chinese equity exposure among institutional investors due to the current risks.
Oil was already in short supply as the global economy opened up post-pandemic; then came the war in Ukraine. Haliburton stands to benefit as oil companies ramp up production. The percentage of your portfolio that should be allocated to safe investments depends on your individual financial situation, investment goals and risk tolerance.
As of the end of 2021, the average yield on its debt investments was 7.5%. The last company here is moving in the exact opposite direction. Omega Healthcare Investors (OHI -0.76%) is completely focused on senior housing assets. In fact, a huge 83% of its net operating income comes from nursing homes. That introduces a political component, since the government can and does adjust payment rates. That said, in 2020 there was little doubt that Uncle Sam would keep paying, and Omega’s business actually held up pretty well.
And if the company doesn’t turn a profit soon, insolvency risks will be magnified, and ACB stock will keep plunging. Does that mean you should go out and form an aggressive portfolio of stocks in hopes of maximizing reward? Uggs is Deckers’ largest business, though, with high profit margins and strong cash flow. The brand has a good chance of seeing its pandemic-era popularity stick. Moreover, the carrier is on track with its goal of doubling its share of the large-business and government market from less than 10% to nearly 20% over five years. CFRA expects earnings to jump from $2.06 a share in 2022 to $6.40 in 2023; the shares could see $175 within 12 months.
Based on analyst consensus for 2022 earnings ($25.71 per share), NVAX stock trades at an earnings multiple of around 8.8x. Given the outsized moves it makes on any news, stronger results next quarter could mean another big move for CIDM stock. Conversely, more disappointment would likely send it back well below $1 per share.
These 10 Super-Risky Stocks Actually Pay Off Big
And given the fact that KIRK has nearly 375 stores in 35 states, a lot of consumers are headed to KIRK’s stores. For its market penetration, it’s surprising KIRK only has a market cap https://1investing.in/ of $320 million. It resides with the high-risk stocks group because it’s smaller than many of its national rivals. But its performance continues to outpace many of its competitors.
- CFRA expects earnings to jump from $2.06 a share in 2022 to $6.40 in 2023; the shares could see $175 within 12 months.
- During 2021, it entered the crosshairs of short sellers, who saw its outstanding performance as little more than the product of one-and-done pandemic-era tailwinds.
- That means you won’t have any trouble selling Treasury securities if you need to cash out before they reach their full maturity date.
- Then, with shares, up around 580% over the past year, it could experience another triple-digit percentage move higher.
- In turn, that’s been bad news for crypto-related stocks, such as Bakkt Holdings.
Unfortunately, with investors more concerns about the path to profitability for this and other sportsbook names, FuboTV plunged after it last reported results in November, and has continued to move lower. Today, it trades for around $13 per share, versus around $33 per share two months ago. The market took a similar view, resulting in shares surging more than 60% since Biden shifted federal policy about for-profit prisons back to unfavorable. To some, with its partial recovery, it may seem like it’s too late to buy CoreCivic. But as a Seeking Alpha contributor recently argued, there’s still good reason to be bullish.
As a general rule of thumb, some financial experts suggest allocating around 10% to 20% of your portfolio to safe investments. The closer you are to retirement age, the less risk you want to take with your investments. This is because there’s less opportunity to build or recoup your principal if it’s lost. For this reason, it’s often recommended that younger investors—those farther away from retirement age—take a chance on more volatile investments with the potential for larger returns. Since companies can and do go bankrupt, corporate bonds are less safe than the options listed above. But unlike stocks, companies are still required to make timely payments to bondholders.
While the bullish theses for these stocks promise significant potential, it is important to weigh the risks before committing to any of these stocks. A long-held standard of such legendary investors as Warren Buffett, Philip Fisher, Benjamin Graham, John Templeton and others is to buy unpopular stocks of good companies. Investing is a risky endeavor, as is anything that involves the future.
As a result, short interest shot up to as much as 44.8% of float by September. Yet as the company continued to perform well, despite challenges like supply chain disruptions, the shorts got pinched in early November. It zoomed from around $25 per share, to as much as $46.30 per share. Stocks are expected to remain very volatile in the months ahead. Many stocks with solid company-specific catalysts have become oversold. Once Mr. Market realizes this and/or when positive developments emerge about these specific stocks, this could reverse in a big way.
SPWR has been the country’s top commercial solar power company since 2017 and has been around since 1985. While FLGT has backed off its recent highs, it’s still up 93% year to date and has established itself as a leading working capital days meaning player in the genetic testing sector. Granted this field is full of competitors, but if testing remains a part of our lives, FLGT will either thrive on its own or get acquired by a bigger player at a big premium.
Petco’s adjusted earnings per share hit 19 cents, which came in below FactSet’s consensus target of 22 cents. For the top line, the company posted sales of $1.48 billion. Again, this metric missed the consensus target, which called for $1.5 billion.
Over the past two months, Cinedigm has again fallen back. Partially due to the waning popularity of riskier plays, but mainly due to a revenue miss when it last reported quarterly results. The company has also made progress getting out of the red, reporting breakeven earnings. During 2021, it entered the crosshairs of short sellers, who saw its outstanding performance as little more than the product of one-and-done pandemic-era tailwinds.
No one reading this article should bet too heavily on these ideas because they might go sour. Horton (DHI), actually generated gains this year to make the risk worth your while. The stock soared in 2020, and is now consolidating, off 16% year to date. With a market cap of $570 million, it’s an acquisition target or it can move to the next level on its own.
AMRS is up 713% in the past year, and a whopping 214% year to date. It also has a $5 billion market cap, which means plenty of cash on hand to expand its empire. China has allowed some access, but it’s tightly controlled.
Shares in the sporting goods retailer have been making “to the moon moves” since 2020. That’s when materially stronger results started to send this stock (once trading for under $2 per share) to prices well above penny stock levels. The stock is up 138% year to date, yet HOME still trades at a trailing P/E of 9. It has a $2 billion market cap so it’s one of the more established high-risk stocks here. Up 135% year to date, it’s still selling at a trailing price/earnings ratio below 8, with a market capitalization near $450 million. Best of all, despite a larger capital budget outlay, Antero Midstream has made significant headway in strengthening its balance sheet.
Based in Santa Clara, California, AMD is a semiconductor company that develops computer processors and related technologies for business and consumer markets. If you are an investor that believes in the future of technology and would like to capitalize on the continuously evolving industry, AMD might be a good place to start. Stock prices have gained by almost 50% overall in the past 12 months. Even with this, investors believe that the stock is grossly undervalued. Investors looking to increase their potential returns may want to consider these high-risk, high-reward stocks.