I adhere to a remarkably simple rule in investing... Revenue must be growing. I'm not always a stickler for profits. Oftentimes, a young business is going to operate at a loss. But revenue growth shows there is demand for the product and that the company should eventually be profitable. Revenue is the real engine behind fortune-minting moves. And I believe share price will, in many cases, ultimately follow sales. That's why I'm always on the lookout for companies with eye-popping revenue growth. I don't care whether the mainstream media is covering the companies or not. I'm not bothered if few or no analysts are following them. In fact, I prefer it when they don't. The fewer people who know about high-growth gems, the cheaper I can get in. Because it's these high-growth, under-the-radar plays that offer the best opportunities to score big. Lightning Strikes Twice?Public interest in electric vehicles continues to gain traction. My colleague David Fessler and I have covered the sector in depth over the years. But in the past several weeks, analysts and financial talking heads have been tripping over themselves trying to crown the next winner. And investors have plowed into EV superstar Tesla (Nasdaq: TSLA) and newcomer Nikola (Nasdaq: NKLA). Now, even though the race between the two isn't without its naysayers, investors can't deny the returns. This year, Tesla shares have raced to new all-time highs, up more than 135%. The company has finally become profitable as revenue ticks up by double digits. The massive 2020 rally in shares has ballooned Tesla's market cap to more than $185 billion. Since going public, shares of Nikola have more than doubled. The EV semitruck maker is now valued at more than $24.4 billion. Few investors are going to complain about those share price gains - particularly during a year as volatile as the one we're in. But what you may not know is there's an EV play obliterating both of those big-name stocks. In fact, I told you about it more than seven months ago. |
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