Any investor seeking growth stocks that are poised to triple in 2023 will need a strong appetite for risk. That much is very clear. Those same investors should also be well aware that they’ll be investing in cheaper stocks generally. Lower-priced shares have greater potential to multiply in value. That means investors looking for three-baggers will be looking at penny stocks which are, again, risky.
Okay, you get it, to triple one’s capital in less than a year requires significant risk. However, certain industries are better-suited to provide such drastic returns. Biotech is one such well-known area. There are a few biotech shares on this list. That said, I’ve also included a smattering of companies form other industries, such as industrials, beauty products, and banking as well.
| APLT | Applied Therapeutics | $1.55 |
| LYTS | LSI Industries | $12.47 |
| ONDS | Ondas Holdings | $1.07 |
| LIFE | aTyre Pharma | $2.08 |
| OLPX | Olaplex Holdings | $3.76 |
| CUE | Cue Biopharma | $4.77 |
| NU | Nu Holdings | $5.51 |
Applied Therapeutics (APLT)
Shares of stock in biotech Applied Therapeutics (NASDAQ:APLT) have upside well beyond 200%. That’s not particularly surprising to investors familiar with the biotech sector. Such stocks can take off on positive news in very short order. So, it’s really about identifying reasons to expect positive news.
In the case of Applied Therapeutics, the potential headline news that could drive this stock is progress in its various three Phase 3 trials. The company is developing therapeutics for areas of high unmet need. The most recent news came in late-March, when Applied Therapeutics reported earnings. It’s sort of a case of “no bad news is good news.” The firm continues to progress across its three Phase 3 programs. It expects to report additional data on those programs in 2023.
Further, Applied Therapeutics received $30 million in funding through a private equity placement very recently. The equities were sold at a price of $0.95 per share, below APLT stock’s $1.35 share price. Those shareholders and all others will be very happy if the stock can approach its target price above $7.50.
LSI Industries (LYTS)
LSI Industries (NASDAQ:LYTS) is probably the least-risky stock on this list. The company provides non-residential lighting and display solutions. Unlike many of the other firms on this list, LSI Industries isn’t waiting for a future event to spark massive growth. Instead, it continues to improve on a more steady basis.
A quick caveat before we dive deeper into LSI Industries. Its target price is roughly double its current price, meaning it is unlikely to triple investor capital this year. However, it’s a stable company with good fundamentals worth considering.
LSI Industries’ top-line growth of 7% in the most recent quarter isn’t staggering by any means. But its net income did increase by 27% to $4.7 million during the same period. Further, the firm’s free cash flow of $11.7 million should give LSI room to invest and grow as management sees fit. LSI Industries also pays a solid $0.05 quarterly dividend, which yields 1.6%.
Ondas Holdings (ONDS)
Ondas Holdings (NASDAQ:ONDS) is a small company providing wireless radio systems that are vital to industrial internet applications in mission-critical systems. Basically, it sells wireless data solutions, mission-critical IoT services and products, and drones as well. ONDS stock trades for around $1 per share and carries an average target price of $3.
Ondas Holdings is currently a story of potential growth rather than continued growth. Company-wide revenues were approximately $2.1 million in 2022, declining by roughly 28% on a year-over-year basis. The decline was attributable to lower development revenues at Ondas Networks.
The reason to believe Ondas Holdings could actually grow rapidly is primarily due to its acquisition of Airobotics. The acquisition gives Ondas Holdings a drone-in-a-box platform with strong growth potential. The company received its first order for the Optimus System in Dubai and Abu Dhabi. These drones have applicability across public safety, emergency response, package delivery, inspections, and more.
aTyr Pharma (LIFE)
aTyr Pharma (NASDAQ:LIFE) is the stock with the greatest upside on this list. It trades for $2 but carries an average target price of $21.60. The company develops biotherapeutics based on novel pathways. In particular, the firm focuses on the extracellular functionality of tRNA synthetases, which is a new area within biology.
The company’s lead candidate drug is called efzofitimod which controls inflammatory disease states. Efzofitimod is currently being studied in relation to its efficacy against various lung diseases. A review of its potential was recently published in a peer-reviewed journal with positive findings. The drug is being studied closely for its use in treating pulmonary sarcoidosis and other diseases with high unmet needs.
Efzofitimod is currently in Phase 3 clinical trials and is its nearest potential commercial drug. That said, eTyr Pharma does currently make revenues through licensing and collaboration agreements. The company continues to enroll pulmonary sarcoidosis patients in Phase 3 trials of Efzofitimod in the U.S. Europe, and Japan.
Olaplex Holdings (OLPX)
Olaplex Holdings (NASDAQ:OLPX) is an interesting growth stock for several reasons. One, it does have the potential to triple in price, which is why most readers are here. However, Olaplex is interesting because the company has a strong product pipeline that is rapidly-growing, but facing headwinds.
The company sells patented technology-driven beauty products that promise to build bonds within the hair. Olaplex sold $704.3 million worth of these products in 2022 overall. That represented a 17.7% increase. However, in Q4 sales dropped by 21.5% to $130.7 million. Olaplex expected the decline, as the company is investing in driving future growth. One area to address for the company is its sales to specialty retailers which declined by 45.3% in Q4.
OLPX stock could foreseeably rise if it provides an earnings beat in either the upcoming quarter or subsequent quarters. It is expected to see a continued sales decline, but if its investments work, those losses could be smaller than anticipated, signaling a turnaround.
Cue Biopharma (CUE)
Cue Biopharma (NASDAQ:CUE) is a company that is developing injectable biologics that affect disease-specific T cells within the patient’s body. What this means is that patients don’t have to rely on immunosuppressants that weaken the body’s innate ability to fight. Secondly, these products mean that patients don’t have to rely on ex-vivo treatments that require cells to be removed from the body, treated, and reintroduced.
Instead, Cue Biopharma’s solutions are injected and directly influence the T cells. Cue Biopharma’s pipeline of drugs has applicability across multiple cancers with high unmet needs. They reduce toxicity associated with cancer treatments while improving efficacy. In short, Cue aims at providing better outcomes with less-severe side effects for cancer patients.
Cue Biopharma is partnered with Merck (NYSE:MRK) and LG Chem for multiple programs. The company’s pipeline is all still within the pre-clinical and Phase 1 stages. However, Cue Biopharma will continue to rely on collaboration revenues for income as it approaches commercialization.
Nu Holdings (NU)
Nu Holdings (NYSE:NU) is a growing digital bank with strong upside and a healthy outlook for this year and next. That makes the stock worth considering, even as target prices suggest it has slightly less than 200% upside.
Nu Holdings had a very strong 2022 overall, showing strong momentum moving into 2023. The firm added 4.2 million customers in the fourth quarter and 20.7 million customers in 2022. It boasted 74.6 million customers to end 2022, a 38% increase. Additionally, deposits increased by 55% in Q4, reaching $15.8 billion.
Perhaps most impressive of all is the momentum the company brings in improving its fundamentals. Revenues increased from $1.698 billion in 2021 to $4.792 billion in 2022. Its net losses declined from $174.4 million to $9.1 million during the same period. Best of all, Nu Holdings posted a net gain of $58 million in Q4. The company is really hitting its stride, and those net income figures tell a strong story.
Penny Stocks
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.