Growth Stock Options from Industrial and Homebuilding Sectors
Online stock trading with advanced trading software and commission free trading helps you get started in the stock market. Once you've started your trading adventure, you could find the growth stocks too attractive to resist, if you manage to track them. Expert analysis can help you here.
High growth stocks are always attractive propositions, though they do come with risk too. But often you don't get to identify these stocks till they're well past their big growth opportunity. With some in-depth searching though, you can realize that there are some stocks that are just starting on their potential high growth path as a result of some long-term opportunities that have come their way.
Motley Fool analysts have identified two of these stocks:
Precision Agriculture and Industrial Products – Raven ($RAVN)
Precision agriculture and industrial company Raven Industries ($RAVN) is one of these. Raven has diversified into various lucrative fields. In precision agriculture, it develops technologies employing computerized, wireless and cloud-based systems for ensuring more efficient farming. Precision agriculture accounted for a third of Raven's revenue in the 2017 fiscal.
But Raven has many more unique businesses such as the manufacture of hot air, high altitude balloons for research and also aerospace radar systems. These together contributed to 11% of Raven's revenue last year. Its other business is the manufacture of engineered films that basically include polymer coatings and sheets that are used for lining silage bunkers, frac pits, feed storage, landfills, etc. All these are businesses with massive potential that offer great growth opportunities.
With agriculture being cyclical in nature, Raven has had some up and down movement but there's no ignoring the fact that it's got a great growth opportunity. Raven has had a 36% growth in sales that has largely been fueled by a 50% growth in the engineered films business. This resulted in net income doubling to $41 million. The stock is debt-free, points out the analyst, and it yields a 1.5% dividend. In just the past three years $RAVN has gained closed to 70%, but the analyst reckons its growth journey would just have begun.
Homebuilding Stock with Massive Potential – LGI Homes ($LGI)
The homebuilder LGI Homes ($LGI) is another contender. This industry is particularly benefiting from the buying habits of the millennial generation. This generation has been through the big recession, followed by the sluggish recovery of the economy. But now, the Millennials are scaling the career ladder fast, earning more and becoming a major economic force. Among the things the millennial generation spends money for, is homes.
The housing sector has seen weak demand for years, and the young millennial generation buyers have not been finding affordable starter housing options. That's the market LGI Homes has been capitalizing on. That helped its earnings per share to rise 73% on revenue growth of 69% in Q3. Its EPS rose 54% on sales growth of 62% in Q4.
Though the company has already begun tasting success with increasing sales and profits, LGI Homes could grow much further. In 2017 the company sold only 5,845 homes, accounting for less than 1% of the total number of new homes sold in the United States that year, 617,000. Millennials are continuing to become a more influential force in the homebuyer segment, and the analyst reckons that could help LGI expand its market share significantly.
Motley Fool analysts believe these stocks could be great additions to your portfolio. To learn more about advanced online stock trading, get in touch with TradeZero at +1 954-944-3885 or email firstname.lastname@example.org.
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