Two Prominent Stocks Exhibiting Exceptional Growth, Suggesting Investment Opportunities in November
Growth-focused investors have encountered their fair share of obstacles recently, with numerous prosperous businesses they back encountering significant hurdles. Some of these growth stocks overcame these challenges and are once again generating substantial profits. If you've got the financial resources and risk tolerance to invest in growth-oriented stocks, this might be an excellent time to allocate funds towards high-quality companies.
Before investing, it's crucial to only use funds you won't need for immediate financial obligations and to thoroughly research any company you consider purchasing.
With this in mind, here are two top growth stocks to consider that appear to be undervalued at the moment.
1. Organ Recovery Systems, Inc.
Organ Recovery Systems, Inc. (OTCI -1.5%) is a medical technology firm that specializes in organ preservation therapy for end-stage organ failure patients. Established in 1998, the company is best known for its Organ Preservation System (OPS). The OPS is a device that maintains and preserves donor organs from storage to transportation, ultimately transplanting them to patients.
The OPS is able to carry out various functions, such as mimicking human body temperature and delivering nutrients to maintain the donor organ's health. Three types of organs can be preserved and stored in the OPS – lungs, livers, and hearts. The OPS can sustain the health of organs outside of the human body for up to 24 hours in many cases.
Historically, traditional cold storage methods have been used to facilitate organ transplants, often leading to complications such as ischemia, enhanced complications, and post-transplant damage. The OPS significantly reduces the risk of ischemia, as well as potential complications. Another crucial element of Organ Recovery Systems, Inc.'s growth strategy is its logistics business, which includes an air fleet for transporting donor organs. The company currently has 18 aircraft in its fleet.
Management believes the company is on track to achieve its goal of 10,000 OPS transplant cases per year in the U.S. by 2028. Total revenue in the third quarter of 2024 increased by 64% compared to the previous year, reaching approximately $109 million. Management attributes this revenue growth to increased adoption of the OPS across all three organs as well as logistics revenue.
Where Organ Recovery Systems, Inc. reported a net loss of $25.4 million one year ago, the recent quarter saw net income of $4.2 million. Management is also forecasting revenue growth of 76% to 84% for the full year 2024 compared to 2023. Potential investors seeking to invest in a cutting-edge business revolutionizing the multibillion-dollar global transplant industry might want to revisit this healthcare stock.
2. Shopify
Shopify (SHOP 3.45%) has established a powerful global presence since its inception two decades ago. The company holds about 10% of the global e-commerce software market and is the leading e-commerce software platform in the U.S., with a market share of approximately 30%.
It's worth noting that the U.S. e-commerce market is valued at over $1 trillion and is the world's second largest e-commerce market, after China. Shopify's market potential is expanding both in its domestic markets and internationally as the global e-commerce industry expands.
In the third quarter of 2024, Shopify reported its fifth consecutive quarter of gross merchandise value (GMV) growth, which is the total value of merchandise sold in a given period. Gross payment volume (GPV) is also seeing rapid growth. Operating income more than doubled in Q3, while revenue grew 26% year over year to $2.2 billion.
Shopify's suite of software and hardware solutions integrates seamlessly with a wide range of offerings from its global partner ecosystem. However, its own in-house solutions, such as Shopify Payments (a payment processing service for merchants) and Shop Pay (a seamless checkout option for customers), are proving to be key growth drivers.
For instance, the Shopify Payments offering processed $43 billion in GPV in the third quarter of 2024, representing a 31% increase from the previous year and accounting for 62% of overall GMV. Shop Pay's product offering also saw impressive growth, processing $17 billion in GMV in Q3, which represented a 42% year-over-year increase and accounted for 41% of GPV.
Shopify remains highly profitable, with Q3 operating income increasing 132% to $283 million and net income rising 15% from the previous year to $828 million. It also delivered a 19% free cash flow margin, with total free cash flow increasing 53% year over year to $421 million. Despite some investors' reluctance to invest in e-commerce given the current growth environment, Shopify is proving to be a standout performer. It's not too late to add some shares to your portfolio that have the potential to yield generous returns over the next five or more years.
To effectively invest in Organ Recovery Systems, Inc., it's essential to only use funds you won't need for immediate financial obligations and to conduct thorough research on the company's operations and growth potential.
Shopify's continuous growth in the e-commerce industry, with its profitable Q3 and expanding market share, makes it an attractive option for investors seeking to allocate funds in the finance sector.
