Three Stocks that have Doubled in Value Again in 2024

Three Stocks that have Doubled in Value Again in 2024

We may only be three months away from 2024, but some investors made a lot of money in the first quarter. Actions of Super microcomputer (NASDAQ:SMCI), MicroStrategy (NASDAQ:MSTR)And Root (NASDAQ:ROOT) have already more than doubled in 2024.

They are among 21 U.S.-listed stocks with a market cap above $800 million that have doubled this year, and they are the rare early winners of 2024 that also more than doubled last year. Let’s take a closer look at how these three stocks have produced wealth-changing returns in just the last three months.

1. Super microcomputer: up 255%

The market’s biggest winners rarely manage to repeat their performance the following year, but Super Micro Computer hopes to break that mold. The stock has more than tripled in this young year, after more than tripling in 2023.

Super Micro Computer has been a 12-bagger since early last year. That’s an incredible run in just 15 months, and shares have nearly doubled in 2022 as well.

Supermicro is a provider of servers and storage systems for accelerated computing in enterprise data centers. Artificial intelligence (AI) revolution requires high-octane computing power, and Supermicro is perfectly positioned to ride the wave.

Three Stocks that have Doubled in Value Again in 2024

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It’s not just the investment craze in AI stocks that’s driving shares higher. Supermicro’s growth lives up to the hype. Revenue grew modestly by 7% in its 2021 fiscal year, which ended that summer. It saw sales grow 46% in fiscal 2022 and 37% in fiscal 2023. Its latest quarter takes growth to a whole new level.

Revenue for the second fiscal quarter ended in December soared 103%, fueled by a 107% increase in server and storage systems that account for 94% of its business. The outlook for the fiscal third quarter is even better, as Supermicro is targeting year-over-year revenue growth of 188% to 219%. The $14.3 billion to $14.7 billion in revenue it now sees for full fiscal 2024 would more than double its results from last year.

Supermicro has been profitable for over two decades. The only thing growing faster than its revenue is its bottom line right now. However, the stock’s runaway success will attract more new entrants to the market from companies assembling racks of accelerated computing to take advantage of the AI ​​boom. There are also echoes of cyclical risk in any hardware market.

That said, it’s still hard to ignore, let alone respect, what Supermicro has achieved over the past couple of years.

2. MicroStrategy: up 170%

MicroStrategy is another stock that is performing well. The business intelligence specialist saw its stock more than quadruple last year, and it won’t slow down in 2024.

There is no point in talking about his actual activities here. MicroStrategy is lagging behind in its niche. Revenue has declined in eight of the last nine years, including slight negative top-line growth in each of the last two years.

The real appeal of MicroStrategy is Bitcoin (CRYPTO:BTC). Co-founder and former CEO Michael Saylor is a crypto evangelist and the company has spent the last few years strengthening its position in the leading digital currency. Although Saylor stepped down as CEO in 2022, he remains executive chairman of the board.

MicroStrategy has increased its stake in Bitcoin for 13 consecutive quarters. She owned 190,000 Bitcoins at the start of this year, at a total cost of $5.93 billion, or $31,224 each. Its position currently stands at 214,246 coins. With Bitcoin trading near $70,000 as of Monday morning, MicroStrategy’s stake is worth about $15 billion. This represents more than half of MicroStrategy’s market cap, and it’s fair to say that as Bitcoin scales, so will MicroStrategy stock.

3. Root: 483%

The smallest of the three stocks by market capitalization saw the biggest gain. Root is almost a six-bagger in 2024, and that’s after barely doubling in 2023.

Root entered the market as a disruptor for the insurance industry, becoming the country’s first fully mobile-powered licensed auto insurer. The company went public at $27 in late 2020, an understandably difficult time for an IPO as a play in the auto market. Car sales and usage stagnated early in the pandemic. Previously fast-growing Root would continue to post revenue declines in 2021 and 2022, propelling shares into the single digits.

It’s a different world now. Root’s revenue grew 46% in 2023. It’s still not profitable, and analysts don’t see that changing anytime soon. However, with the growth of the platform returning to the accelerator, the stock is not going backwards.

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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool posts and recommends Bitcoin. The Motley Fool has a disclosure policy.

3 stocks that have already doubled again in 2024 was originally published by The Motley Fool

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