Inflation is forecasted to rise further in the coming months owing in-part to the Russia-Ukraine war. And anticipated aggressive interest rate increases by the Federal Reserve could keep the stock market under pressure. However, the expected economic recovery should help growth stocks rebound soon.
Investors’ interest in the growth stocks is evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 6% returns over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 5.2% returns.
Wall Street analysts expect Kopin Corporation (KOPN) and Wrap Technologies, Inc. (WRAP), which are both trading at less than $5 and which both possess solid growth attributes, to more than double in price in the coming months. So, it could be wise to add these stocks to one’s watchlist.
Kopin Corporation (KOPN)
KOPN in Westborough, Mass., along with its subsidiaries, invents, develops, manufactures, and sells microdisplays, subassemblies, head-mounted and hand-held systems, and related components for defense, enterprise, industrial, and consumer products in the United States, Asia-Pacific, Europe, and internationally.
On March 8, 2022, KOPN’s CEO, Dr. John C.C. Fan, said “2021 was both an exciting and challenging year for Kopin. We successfully navigated the global supply chain issues and continued to lead with innovations in display technologies and optics that enable a superior AR and VR experience for the users.”
KOPN’s research and development revenues came in at $4.30 million for the fourth quarter, ended Dec. 25, 2021, up 12.4% year-over-year. Its total current assets came in at $52.21 million for the period ended Dec.25, 2021, compared to $39.46 million for the period ended Dec. 26, 2020. The company’s total assets were $62.71 million compared to $47.55 million for the same period in the prior year.
KOPN’s 53.61% trailing-12-month working capital growth is significantly higher than the 10.25% industry average.
For its fiscal year 2022, analysts expect KOPN’s revenue to be $48.95 million, representing a 7.2% year-over-year rise. The company’s EPS is expected to increase 20% per annum for the next five years.
The stock closed yesterday’s trading session at $2.63. Wall Street analysts expect the stock to hit $6.00 in the near term, which indicates a potential 128.1% upside.
Wrap Technologies, Inc. (WRAP)
WRAP, a public safety technology and services company, develops policing solutions for law enforcement and security personnel. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. WRAP is headquartered in Tempe, Ariz.
For the fourth quarter, ended Dec. 31, 2021, WRAP’s total revenues came in at $2.45 million, up 73.1% year-over-year. Its total revenues for the year ended Dec. 31, 2021, came in at $7.73 million, up 96% year-over-year. Also, its gross margin, excluding a one-time non-cash line improvement expense of $800,000, came in at 35.5% for the year ended Dec. 31, 2021, versus 34.1% in the year-ago period.
WRAP’s 95.97% trailing-12-month revenue growth is higher than the 19.25% industry average.
Analysts expect WRAP’s revenue to increase 129.5% year-over-year to $28.50 million in its fiscal 2023. Its EPS is estimated to increase 44.4% in 2023.
Over the past month, the stock has gained 14.2% to close yesterday’s trading session at $2.58. Wall Street analysts expect the stock to hit $5.25 in the near term, which indicates a potential 103.5% upside.
What To Do Next?
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KOPN shares were trading at $2.54 per share on Friday afternoon, down $0.09 (-3.42%). Year-to-date, KOPN has declined -37.90%, versus a -4.96% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
2 Growth Stocks Under $5 That Will Double, According to Wall Street StockNews.com
