Financial Freedom: 3 Stocks That Could Turn $10,000 into $100,000

Stocks to buy

In the stock market, identifying the diamonds in the rough can be as challenging as differentiating galaxies from stars in the night sky. Yet, amid the dark, certain stocks to buy stand out as fountains of opportunity, promising gains with potential for financial freedom. There are three companies on the brink of monumental growth on the list.

The first one is a data analytics powerhouse. Its steady revenue growth and edgy AI solutions have made waves. The second one is a stalwart in the semiconductor industry. That defies market trends with its consistent performance and strategic diversification. Meanwhile, with its robust advertising platform, the third one passes through adversities with adaptability.

Overall, these three stocks represent more than just tickers. They hold the fundamental lead and the potential for exponential returns. Read more to uncover opportunities and the promise of a brighter return. The article explores the growth potential of the trio and discovers why they are stocks to buy.

Palantir (PLTR)

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Palantir (NYSE:PLTR) delivers solid topline growth and overall performance. For instance, in Q4 2023, the company hit a revenue of $608 million. That represented a 20% year-over-year (YoY) boost and a 9% sequential growth. The growth was constant throughout the year, with 2023 revenue hitting $2.2 billion. That solid 17% YoY increase demonstrates Palantir’s capability to generate revenue and maintain constant growth.

Additionally, Palantir’s Analytical Integration Platform (AIP) and bootcamps have played a vital role in driving growth, particularly in the U.S. commercial segment. Based on the momentum of AIP adoption, the company had a 70% YoY growth in its Q4 revenue. Bootcamps are intensive workshops targeted at suggesting the capabilities of AIP. They are sharp at compressing sales cycles and accelerating new client acquisitions.

Furthermore, Palantir breached $1 billion in commercial revenue over the last 12 months. That is a milestone in its growth. The company’s customer count grew 35% YoY, demonstrating a broadening client base and increasing target market penetration. The expansion in the client base reflects Palantir’s capability to capture demand from a diverse range of organizations and industries. Hence, this further solidifies its position as a leading data analytics provider and AI solutions.

Lastly, adopting AIP has accelerated sales cycles and boosted client acquisitions in the U.S. commercial segment. Palantir had a 22% sequential increase in new client acquisitions for U.S. commercials in Q4. Thus, the intensive workshops enable clients to experience firsthand the value proposition of Palantir’s portfolio, leading to faster conversions to enterprise deals.

Photronics (PLAB)

Source: Mentor57 / Shutterstock

Over the past six years, Photronics (NASDAQ:PLAB) has attained a compound annual topline growth rate of over 12%. That constant growth rate highlights the company’s ability to capitalize on market demand sharply. Despite a flat photomask market and contraction in the semiconductor industry, phenolics have consistently edged out industry trends.

In 2023, the company achieved 8% YoY topline growth, while the semiconductor industry was expected to contract by up to 12%. That capability to outperform the market is based on Photronics’ competitive edge.

Furthermore, Photronics has diversified its topline by expanding into diverse segments, including flat-panel displays (FPD) and its core semiconductor portfolio. That diversification strategy supports the company in mitigating risks associated with fluctuations in specific segments.

At the bottom line, Photronics attained an operating margin of 28.5% for Q4 and 28.4% for 2023, representing the best year in the history of the company. That solid margin performance suggests Photronics’ operational edge in managing costs. Also, the company benefits from stable pricing through long-term purchase agreements. Hence, this stability in pricing breeds and preserves profitability in a fluctuating market.

At its core, Photronics has tech leadership in the FPD market, particularly in low-temperature polysilicon, active-matrix organic light-emitting diode (AMOLED), and G10.5 large-area masks. There is a strong demand for Photronics’ AMOLED display mask.

Looking forward, Photronics plans to invest $140 million in capital expenditures (CapEx) primarily to match current and anticipated demand growth, especially in high-end and mainstream IC production. Overall, this investment in capacity expansion positions the company to capitalize on emerging demand.

Perion (PERI)

Perion (NASDAQ:PERI) has delivered a solid topline growth trend with a clear upward edge over the past three years. In Q3 2023, Perion reported a 17% YoY increase in revenue, hitting $185.3 million. Given the challenging macroeconomic conditions, this growth rate is noteworthy, suggesting Perion’s sharp business strategies despite external pressures. The constant topline growth over the past three years suggests the company can adapt and thrive in a diverse market.

Additionally, Perion has diversified revenue streams. That supports the company in mitigating the risks associated with dependence on a single source. Display advertising, which accounts for 54% of total revenue, experienced a 14% YoY increase. Notably, Perion has strategically expanded its display advertising moat by incorporating new components such as connected TV (CTV) and retail media.

The company’s target is to become a comprehensive advertising platform. Notably, its diversification strategy has bolstered topline growth and solidified Perion’s position as a one-stop shop for advertisers.

Moreover, Perion’s performance delivers profitability and operational edgy. In Q3, adjusted EBITDA was boosted by 29% YoY to $42.7 million, with an adjusted EBITDA margin hitting 23% in Q3 2023. This margin improvement reflects Perion’s focus on enhancing the product mix and optimizing media bank utilization.

Finally, the adjusted EBITDA contribution, excluding the traffic acquisition costs ratio, was boosted to 55%. That suggests edgy cost management and resource allocation. Therefore, Perion’s capability to maintain solid profitability between evolving market shifts indicates its solid operational discipline.

As of this writing, Yiannis Zourmpanos held a long position in PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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