3 stocks that can double again in the fourth quarter


It’s been a volatile year for stocks, but naturally some investments have performed better than others. Over 300 stocks have more than doubled in 2021. Many of these winning investments will be lucky if they can hold onto those gains in the last three months of the year, but what about the names that have the potential to double again?

Crocs (NASDAQ: CROX), AMC Entertainment (NYSE: AMC), and Reached (NASDAQ: UPST) have more than doubled in value in the first nine months of 2021. Let’s see why they have what it takes to potentially repeat the feat in the fourth quarter.

Image source: Getty Images.

1. Crocs

Remember those shiny rubber shoes with holes? They are back in style. Sales of Crocs have been booming since the start of the pandemic, and the stock is following suit with a 129% increase in the first nine months of 2021.

Comfortable resin shoes were already making a comeback before the COVID-19 crisis with double-digit revenue growth in 2019 before repeating the feat in 2020. It’s the momentum that really takes Crocs to the next level in 2021.

The year started with the shoe maker forecasting 20-25% revenue growth for the full year in February. The forecast was pushed higher – between 40% and 50% growth – the following quarter. It happened again this summer, with Crocs now targeting a 60-65% increase in revenue for all of 2021. What do you think will happen if those goals are pushed even higher when it releases? its third quarter results later this month?

Despite a stock that’s nearly six-fold since the start of 2019, Crocs is reasonably priced considering its accelerating growth. It is trading at 21 times this year’s profit and only 17 times next year’s target. There is clearly room to increase these multiples, and Wall Street is finally as comfortable with Crocs as an investment as its clients are.

2. AMC Entertainment

You might be surprised to find the nation’s top multiplex operator on this list, but the plot twists are what make the movies so good. It is certainly true that AMC Entertainment has appreciated – in terms of both the share price and a five-fold explosion in outstanding shares – to the point that its valuation is out of control relative to its peers. If you want a pure investment game on the recovery of the movie industry, you will find more attractively priced stocks to get rid of that itch.

However, as an action meme and a cultural phenomenon, it’s hard to argue with what AMC has done to translate its popularity with retail investors into legitimate market share in the recovery process. No company has seen its market capitalization swell as much as AMC this year, but it is also a stock entering the fourth quarter with a share price that is just over half of what it is. it was when it peaked in June. In short, he would have to double from here to revisit his all-time high – but isn’t that always possible with the poster child for the dynamic actions of 2021?

Basically the catalysts are also there. Shang-Chi and the legend of the ten rings broke box office records over the Labor Day weekend, but the initial excitement died down when the following weekends were appalling. However, everything revolves around the pipeline. Studios pushed back releases from September to October and beyond, when the delta variant led to a spike in COVID-19 cases. We are now seeing the highly anticipated films return, starting with the new James Bond film next weekend. The fourth quarter is expected to be a lot stronger for the industry than naysayers realize, and if AMC stock returns to what it was in early June – basically won this time – it will need to double from here on out.

3. Arrived

I love when industries ripe for disruption are turned upside down, and that’s what Upstart is doing with the lending industry. Upstart uses artificial intelligence and machine learning to better assess the risk profiles and creditworthiness of people who are not typically approved for consumer loans.

The growth is crazy. Revenues appeared to be slowing sharply, with growth spurts slowing down to 89%, 52% and 27% respectively over the past three years. Now that consumers realize that Upstart is a better alternative to payday loans and other predatory loan products, business is skyrocketing. Revenue rose 90% in the first quarter, only to increase by 1,018% in its last report. And no, it’s not a typo.

With Upstart now expanding in the auto loan market, the potential for its better alternative to heavy credit scores is just beginning. The stock has been seven sacks in the first three quarters of 2021, but the trail is long for this disruptive throw.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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