Stocks to buy

During the current earnings season, a few of the companies whose stocks I own delivered great third-quarter results. These results, along with their other achievements, shows that the firms’ technologies are being widely-embraced by end users. Consequently, I believe that these names are destined to become hypergrowth stocks relatively soon.

Also importantly, all three of these companies’ business segments are growing rapidly and are well-capitalized, providing these three firms with the “fuel” they need to enter hypergrowth mode.

Here are the three hypergrowth stocks that I believe can make retail investors millionaires by 2027.

JKS JinkoSolar $49.07
BNGO Bionano $2.29
SDGR Schrödinger $20.92

JinkoSolar (JKS)

Source: Lutsenko_Oleksandr / Shutterstock.com

First on our list of millionaire-maker hypergrowth stocks is China-based solar module maker JinkoSolar (NYSE:JKS). This company’s solar panels recently set another efficiency record, powering extremely impressive third-quarter results on Oct. 28.

Specifically, the company’s revenue soared 106% year-over-year to $2.74 billion, while its net income, excluding certain items, came in at 427.5 million Chinese yuan, versus a loss of 1.5 million Chinese yuan during the same period a year earlier.

Despite the impact of high inflation, Jinko’s gross margin actually climbed to 15.7% last quarter from 14.7% in the previous quarter. This was also a significant year-over-year improvement from the 15.1% gross margin Jinko reported in Q3 of 2021. Finally, the company shipped 3% more solar modules year-over-year, and its shipments soared 117% as well over this time frame.

JKS is benefiting from strong demand for its N-type modules, which are more efficient and profitable than their predecessors. With increasing demand for electricity leading to higher electricity prices, solar energy is now an extremely attractive alternative in many regions around the world. Thus, I think Jinko’s sales and profits should continue to soar in the coming months and years.

That said, the forward price-earnings ratio of JKS stock is only 7.7-times, with its trailing price-sales ratio a tiny 0.25-times.

Bionano (BNGO)

Source: Dennis Diatel / Shutterstock.com

Using optical genome mapping, Bionano’s (NASDAQ:BNGO) Saphyr device detects structural variations in DNA. This enables researchers and medical professionals to more accurately assess and treat tumors and genetic aberrations. With Saphyr, these professionals, evidence suggests, can detect cancer and genetic disorders earlier, enabling them to more-effectively treat diseases.

Last quarter, Bionano’s top line soared 55% year-over-year to $7.22 million, while the number of Saphyr devices deployed globally climbed 11% versus the previous quarter and 54% on a year-over-year basis.

Meanwhile, on Oct. 4, a study by Sorbonne University showed that optical genome mapping (OGM) uncovered 37% more structural variations in liver cancer than whole genome sequencing (WGS), which is currently much more widely used.

“It shows that OGM can be more sensitive for detecting large structural variations than WGS and it provides a nice example of how complementary the two methods are,” said Bionano CEO Erik Holmlin in a statement.

Also importantly, the company recently launched Bionano Labs, which can perform OGM tests on behalf of medical organizations. Bionano Labs has the certification necessary to obtain reimbursement for these tests from insurers. In the long-term, the lab should prove to be quite lucrative for BNGO, since health insurers have a great incentive to treat cancers sooner (and also have significant funds at their disposal to invest in these technologies).

Finally, BNGO is working closely with University of Texas MD Anderson Cancer Center, one of the nation’s premiere cancer treatment and research facilities. Over time, this collaboration should open many doors for Bionano.

Schrödinger (SDGR)

Source: shutterstock.com/Peshkova

Last on our list of hypergrowth stocks to buy is Schrodinger (NASDAQ:SDGR). This developer of artificial intelligence technology used to enhance the drug discovery process reported an impressive increase in the revenue it obtains from its products’ use by drug makers.

Specifically, the company’s drug discovery revenue jumped 121% year-over-year to $12.3 million. Additionally, the company now expects its 2022 drug discovery revenue to soar between 82% and 94%, which provides a range of $45 million to $48 million. This is impressive, compared to its previous outlook of $35 million to $45 million.

Conversely, SDGR expects its revenue from software sales to rise just 8%-12% this year to $122 million to $127 million.

The more muted outlook for software growth likely reflects conservative spending by some organizations. There are certainly plenty of concerns around this current macroeconomic environment. However, the large gains in Schrodinger’s drug discovery revenue indicates that its technology is actually achieving its goal of helping researchers rapidly-advance their drug candidates.

On the date of publication, Larry Ramer held long positions in BNGO, SDGR, and JKS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.

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