While it’s never easy to identify multibagger stocks, this may be one of the best times in decades to “swing for the fences” by buying undervalued growth names that are well-positioned to at least triple over the next few years.
Amid excessive worries about interest rates, the Street has pushed down many unprofitable, high-potential companies’ stocks to absurdly low levels. Now that those fears are dissipating, these firms are well-positioned to make huge comebacks. Interest rates recently dropped significantly and are poised to fall further in the next two years, leaving these undervalued stocks to become multibaggers by the end of 2026.
iCAD’s (NASDAQ:ICAD) “AI-powered” breast cancer detection technology is an improvement upon conventional mammographies. The company continues to make tremendous progress under its new CEO, Dana Brown.
On November 27, the firm reported that its ProFound Breast Health Suite can detect heart disease risk by evaluating mammographies. The product detects calcium deposits inside the breast’s blood vessels. Women with these deposits are 51% more likely to experience heart disease. Solis Mammography’s chief medical officer reported that iCAD’s system yields more accurate results than usage of visual mammographies. iCAD’s offerings make breast cancer and heart disease screening quicker, more affordable and accurate, increasing the appeal to many providers.
Further, iCAD reported that GE Healthcare (NYSE:GEHC) will utilize its products to offer its customers AI powered solutions. Given GE Healthcare’s size and reputation, the deal should increase revenue generation within a year or two.
Despite iCAD having these and other strong, positive catalysts, the shares have a paltry market capitalization of $47 million, giving it great potential to soon be on the list of multibagger stocks.
Blink Charging (BLNK)
I’ve had doubts about Blink Charging (NASDAQ:BLNK) ever becoming one of the multibagger stocks I recommend. However, the EV charger seller recently reported excellent third-quarter results.
Blink Charging’s sales soared 151% YoY to a quarterly record of $43 million, while its gross profit jumped 167% YoY to $12.8 million. The firm also expects to at least break even on an EBITDA basis in 2025.
The company “contracted, sold or deployed 5,965 chargers globally” in Q3. This was with sales of its DC fast chargers rising and accounting for a higher percentage of the company’s top line.
CEO Brendan Jones mentioned that the company had upgraded its chargers last year. That, coupled with the company’s strong Q3 results and outlook, indicate that the firm has eliminated previously-reported quality problems.
The forward price-sales ratio of BLNK stock is an extremely low 1.3 times.
Bionano’s (NASDAQ:BNGO) optical genome mapping tests find important structural variations in DNA that are often missed. Bionano’s system is also reportedly much easier and faster to use than the standard systems.
Because of these attributes, a number of drug makers have started using the test. BNGO CEO Erik Holmlin reported that the firm is marketing OGM (optical genome mapping) for use by pharma companies that are developing cell and gene therapies for blood cancers. These companies are using OGM to ensure that the cells and genes they will infuse have not deteriorated, Holmlin explained.
BNGO has had some success marketing OGM to these pharma companies, as the number of drug makers utilizing BNGO’s OGM system roughly doubled last quarter versus the same period a year earlier, the CEO indicated.
Because promising cell therapies for blood cancer are attracting companies, BNGO could generate significant revenue in the future from these developments.
Moreover, Bionano is making significant progress towards getting OGM approved by the FDA. Such an approval should cause Bionano’s growth to accelerate tremendously, and could occur as early as 2025.
BNGO stock has an absurdly low market capitalization of around $65 million.
On the date of publication, Larry Ramer held long positions in ICAD and BNGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.