Although, on the surface, everything looks gloomy now for stocks, one point that the bears are forgetting, I would argue, is that we live in an era of unprecedented technological advancement. Never before in the world has there simultaneously been so many new, highly impactful technologies –from artificial intelligence to connected cars to fintech to autonomous vehicles to automated retail checkout devices.
As a result, there are a diversity of companies that are little known today but whose products will generate tremendous amounts of revenue in two or three years. And, of course, the shares of these companies will go up hundreds of percent along the way, making them great stocks to buy at this point.
Let’s take a look at seven little-known stocks to buy that can make those who buy a few thousand dollars of their shares today, millionaires in a decade.
iCAD (NASDAQ:ICAD) develops products that use artificial intelligence to detect cancer more effectively and efficiently than standard-of-care products. The company’s leading offering is its Breast AI Suite.
Among the products within the suite are “ProFound AI,” which the company says is “the first AI cancer detection software for 3D mammography to be cleared by the FDA,” and “ProFound AI Risk.” According to iCAD, the latter tool is “the world’s first and only clinical decision support tool that provides an accurate short-term, breast cancer risk estimation that is truly personalized for each woman.”
Furthermore, the company added that Profound AI Risk can be nearly 2.4 times more exact than standard tests.
Among iCAD’s leading customers is Solis Mammography, which calls itself “the largest independent provider of mammography and breast health services in the United States.” Solis’ decision to sign a five-year partnership deal with iCAD at the end of 2020 validates the tremendous utility and value of iCAD’s Breast AI Suite.
Moreover, due mainly to a combination of macro challenges and iCAD’s recent decision to begin offering subscription payment models instead of one-time licensing fees, iCAD’s revenue fell 3.2% year-over-year to $7.6 million. However, its CEO, Stacey Stevens, said in August that the company had signed more new customers in Q2 than in Q1 and that its results should improve in the second half of this year.
Embark (NASDAQ:EMBK) develops software that enables trucks to drive autonomously. Given the tremendous shortage of trucker drivers in the U.S., the demand for such products is likely to be very high.
As of a year ago, Embark already had 14,200 reservations for its software. If all those reservations, which require refundable, $500 deposits, convert to deliveries, the company would generate $867 million of revenue. Yet the market capitalization of EMBK stock is just $151 million.
Furthermore, on Aug. 11, Embark CEO Alex Rodrigues reported that EMBK was “on track to begin delivering Embark-equipped trucks starting in December.” Embark’s first deliveries are slated to go to its partner, Knight-Swift (NYSE:KNX), one of the largest firms in the trucking sector.
Moreover, in a strategy that I consider to be intelligent, Embark is looking to distinguish itself from its competitors by seeking to optimize its software for wintry environments.
The current low valuation of EMBK stock significantly undervalues its tremendous potential. Thus, it is one of the best stocks to buy.
Gevo (NASDAQ:GEVO) develops sustainable airplane fuel (or SAF) that the company anticipates will have “net-zero greenhouse gas emissions” over their lifetimes. The company’s SAF is created from corn components that are left over from the processing of corn.
When it comes to making important deals, Gevo continues to make great progress. On Oct. 10, the company reported that it anticipated generating $2.3 billion of revenue per year from the SAF agreements that it had already concluded. Moreover, among its customers are Delta Airlines (NYSE:DAL), American Airlines (NYSE:AAL), Alaska Airlines (NYSE:ALK), Japan Airlines (OTC:JAPSY), and International Airlines Group’s (OTCMKTS:ICAGY) British Airways.
In addition, Gevo added that it expects to benefit from tax credits recently signed into law as part of the climate bill that Congress recently passed.
In February, Citi started coverage of GEVO stock with a “buy” rating and a $5 price target. Lastly, firm expects the company’s cash flow to turn positive by 2023-2024.
Shockwave Medical (SWAV)
Founded in 2009, Shockwave Medical (NASDAQ:SWAV) has developed an innovative system that treats the widespread problem of cardiovascular calcium with shockwaves. The company explains that standard offerings” only treat superficial calcium” and cannot eliminate “deep calcium.”
Conversely, Shockwave says that its IVL offering works “by disrupting [both] superficial and deep calcium.” IVL has been used in the heart, “peripheral” blood vessels, and “iliac” arteries. The company reports that IVL is “safe.”
Moreover, Shockwave is growing rapidly and has become profitable. In the second quarter, for example, it generated $121 million in revenue, up from $56 million during the same period a year earlier. Furthermore, its operating income came in at $29.6 million versus a Q2 operating loss of $200,000 during June of 2021.
SWAV also increased its fiscal 2022 sales guidance to $465-475 million to from $435-455 million, making it one of the millionaire-maker stocks to buy.
YETI Holdings (YETI)
Some may argue that Yeti Holdings (NYSE:YETI) is well-known. But I believe that most of the many investors who are not big fans of outdoor activities probably have not heard of the company. That’s because, as far as I can tell, YETI stock has not been widely covered by business news outlets or publications that focus on stock picking.
As you may have guessed, Yeti focuses on developing products used in conjunction with outdoor activities. Its offerings include coolers, beverage containers, and apparel for various outdoor environments.
With hundreds of millions of people globally focusing on losing weight and staying healthy in the wake of the coronavirus pandemic, the demand for Yeti’s products should be growing significantly. And indeed, last quarter, its revenue climbed 17.4% year-over-year to $420 million. Meanwhile, analysts, on average, expect its EPS to rise to $2.85 next year, up from $2.38 in 2022.
Of course, Yeti is not a high-tech company. But given its relatively low market capitalization of $2.6 billion and its low net debt of $16.2 million as of the end of Q2, I believe that it can, through acquisitions and the growth of its existing offerings, boost YETI stock a great deal. Making it one of the top stocks to buy on this list.
Array Technologies (ARRY)
A developer of solar tracking systems, Array Technologies (NASDAQ:ARRY) is well-positioned to benefit from the vast, global explosion of solar energy. In the U.S., for example, solar has expanded at “an average annual growth rate of 33%,” according to research firm Wood McKenzie.
Moreover, AARY is benefiting financially from the sector’s growth. In Q2, the company’s top line soared 116% year-over-year, reaching $425 million and coming in $88 million ahead of analysts’ average outlook. Further, its Q2 EBITDA, excluding certain items, jumped to nearly $26 million, up from almost $10 million during Q2 of 2021.
Last month, research firm Piper Sandler raised its rating on ARRY stock to “overweight” from “neutral” and hiked its price target on the name to $28 from $20. As reasons for the upgrade, the firm cited what it sees as the company’s strong orders, its focus on profitability, and its ability to benefit from the new energy law.
DoubleVerify’s (NYSE:DV) products automatically analyze the effectiveness of digital ads. Among the metrics evaluated by the software are “brand safety, viewability, and geography,” along with “exposure and engagement” potential.
Furthermore, DV reported impressive second-quarter results, as its top line jumped nearly 43% YOY to $110 million and generated a net income of $10.3 million.
In addition, the company’s impressive customers are British Airways, Yum Brands’ (NYSE:YUM) Taco Bell, Meta (NASDAQ:META), Comcast’s (NASDAQ:CMCSA) Universal Parks. Reddit, Amazon’s (NASDAQ:AMZN) Twitch, and Microsoft’s (NASDAQ:MSFT) LinkedIn are among their top-notch partners. Moreover, according to a recent report, Netflix (NASDAQ:NFLX) recently chose DoubleVerify as a partner for its upcoming ad offering.
Lastly, RBC Capital believes that the news is positive for DV stock. Identifying the company as “a long-term [connected TV] beneficiary,” it kept a $32 price target and an “outperform” rating on the shares. Making DV one of the millionaire-maker stocks to buy.
On the date of publication, Larry Ramer owned shares of ICAD stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.