3 shares that have already doubled again in 2024

By | April 1, 2024

We may only be three months into 2024, but some investors have made a lot of money in the first quarter. Shares of Super microcomputer (NASDAQ: SMCI), MicroStrategy (NASDAQ:MSTR)And Carrot (NASDAQ: ROOT) will have more than doubled by 2024.

They are among just 21 U.S.-listed stocks with market caps over $800 million that have doubled this year, and they are the rare early gainers of 2024 that also more than doubled last year. Let’s take a closer look at how these three have delivered wealth-changing returns over the past three months.

1. Supermicrocomputer: 255% increase

The market’s biggest winners rarely come up with repeat performances the following year, but Super Micro Computer hopes to break that pattern. The stock has more than tripled in this young year, and that was after more than tripling in 2023.

Super Micro Computer has been a 12-packer since early last year. It’s a tremendous run in just 15 months, and the stock is also close to doubling in 2022.

Supermicro is a provider of server and storage systems for accelerated computing in enterprise data centers. The artificial intelligence (AI) revolution requires high-octane computing power, and Supermicro is perfectly positioned to ride the wave.

Someone points to a stock chart moving higher.

Image source: Getty Images

It’s not just an investment frenzy for AI stocks that’s driving the stock higher. Supermicro’s growth lives up to the hype. Revenue rose a modest 7% in fiscal 2021, which ended that summer. The company saw its sales increase 46% in fiscal 2022 and 37% in fiscal 2023. The latest quarter takes growth to a whole different level.

Revenue for the second fiscal quarter ended in December rose 103%, fueled by a 107% increase in server and storage systems that make up 94% of revenue. The fiscal third quarter outlook is even brighter, as Supermicro targets year-over-year revenue growth of 188% to 219%. The $14.3 billion to $14.7 billion in revenue it now looks for for all of fiscal year 2024 would more than double last year’s results.

Supermicro has been profitable for more than twenty years. The only thing growing faster than revenue is revenue right now. However, the stock’s blistering success will lure more entrants into the market from companies assembling accelerated computer racks to cash in on the AI ​​boom. There are also echoes of cyclical risks in every hardware market.

All this said, it’s still hard to ignore, much less respect, what Supermicro has achieved in recent years.

2. MicroStrategy: 170% increase

Another stock that delivers an encore performance is MicroStrategy. The business intelligence specialist more than quadrupled its stock last year and the price is not expected to slow down in 2024.

There is no point in even talking about its actual activities here. MicroStrategy is a laggard in its niche. Sales have declined in eight of the past nine years, including modest negative sales growth in each of the past two years.

The real appeal of MicroStrategy is Bitcoin (CRYPTO: BTC). Co-founder and former CEO Michael Saylor has been a crypto evangelist and the company has built its position in the leading digital currencies in recent years. Although Saylor will step down as CEO in 2022, he will remain executive chairman of the board.

MicroStrategy has increased its stake in Bitcoin for 13 consecutive quarters. It owned 190,000 Bitcoins at the beginning of this year for a total of $5.93 billion, or $31,224 each. The position has currently grown to 214,246 coins. With Bitcoin worth nearly $70,000 as of Monday morning, MicroStrategy’s stake is worth about $15 billion. This is more than half of MicroStrategy’s market cap, and it’s fair to say that, like Bitcoin, so will MicroStrategy stock.

3. Carrot: 483%

The smallest of the three stocks in terms of market capitalization has posted the biggest gains. Root is almost a six-bagger in 2024, and that’s after barely doubling in 2023.

Root entered the market as a disruptor to the insurance industry, becoming the nation’s first fully mobile-powered licensed auto insurer. The company went public at $27 in late 2020, which was understandably a challenging time for an IPO as a play on the auto market. Car sales and use came to a standstill early in the pandemic. Previously fast-growing Root would post revenue declines in 2021 and 2022, sending its shares into the single digits.

It’s a different world now. Root’s revenue increased by 46% in 2023. It’s still not profitable, and analysts don’t see that changing anytime soon. However, now that the platform’s growth is back on the gas, the stock is not shifting back to the opposite direction.

Should You Invest $1,000 in Super Micro Computer Now?

Consider the following before buying shares in Super Micro Computer:

The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks per month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.

View the 10 stocks

*Stock Advisor returns April 1, 2024

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool holds and recommends positions in Bitcoin. The Motley Fool has a disclosure policy.

3 Stocks That Have Already Doubled Again by 2024 was originally published by The Motley Fool

Leave a Reply

Your email address will not be published. Required fields are marked *