These stocks are on the verge of a potential breakthrough. For any investor, the dream of a tenbagger stock, which increases its value tenfold, is extremely tempting, a term coined by world-renowned fund manager Peter Lynch. However, Lynch did not specify within what timeframe such a value increase should be achieved. We predict a scenario in which this remarkable value multiplication could become a reality within the next three years. However, the speculative nature of this investment is explicitly high.

ACM Research (ISIN: US00108J1097; $19.78) founded in 1998 in the innovation-rich Silicon Valley, has established itself as a leading developer in wet processing technology for the semiconductor industry, with a focus on cleaning technologies. The company impressed with an upward revision of its revenue expectations to $530-545 million for 2023 and a positive forecast of $650-725 million for 2024, reflecting the strong growth dynamics in the semiconductor sector.

ACM’s successes, especially the impressive revenue growth with an annual growth rate of 56%, are mainly due to the expansion of its customer base in China and the diversification of its product offerings. Despite the risks of a chip conflict between the US and China, which the market seems to have priced into the company’s low stock valuation, ACM Research is optimistic about the future and aims to achieve revenue of $1 billion in the coming years.

Bloomin Brands (ISIN: US0942351083; $26.14) could be driven to new heights by the recent 9.9% entry by activist investor Starboard Value. Bloomin is one of the leading operators of casual dining restaurants and has 1,450 locations in the US. The company has seen limited growth in recent years due to the pandemic. The past third quarter also did not go smoothly. Revenue fell from $1.15 to $1.08 billion. EPS also fell to $0.45 from $0.70.

In recent years, Starboard has already achieved remarkable successes in the restaurant sector. In 2014, Starboard initiated changes at Darden Restaurants. This led to the company’s stock price increasing from $40 in 2014 to $120 (+200%) in 2019, after previously only showing minor gains.

In 2019, Starboard invested $250 million in restaurant chain Papa John’s Int., whose stock price also saw considerable gains (+240%) by 2021. If Starboard succeeds in implementing comprehensive operational and financial changes, Bloomin‘ Brands stock could see similar strong gains in value over the next two years.

BWX Technologies (ISIN: US05605H1005; $86.78) is developing new nuclear microreactors for the US Department of Defense. The potential is enormous! The company has a wide range of activities, including the manufacture of nuclear reactors, the development of medical isotopes, and space research. It’s no wonder that NASA and the US Department of Defense have selected it to build a nuclear rocket prototype for demonstration in space.

Many governments have recognized that nuclear energy, due to its emission-free and proven reliability, is the most promising and sustainable source of energy. BWX Technologies is working on developing microreactors that can run on low-enriched uranium („HALEU“) and tristructural isotopes („TRISO“). This technology eliminates the risk of reactor accidents like Fukushima.

The demand for such systems, together with the marine and medical sectors, has driven revenue growth in the last quarter. While the nuclear medicine market is expected to grow from $6 billion in 2020 to an estimated $30 billion in 2030, the microreactor market is expected to be even larger.

Comfort Systems (ISIN: US1999081045; $226.49) is a leading company in the building technology sector, specializing in heating, electricity, and water, with a goal of making buildings efficient, safe, and environmentally friendly. With 173 locations and partnerships with 43 companies, the company offers a wide range of services from HVAC to fire protection and is committed to energy efficiency by modernizing old systems.

Despite the challenge that large projects like data centers do not always produce the highest profit margins, Comfort Systems saw revenue growth of 23% in the third quarter to $1.38 billion and exceeded earnings expectations by 76 cents per share. The acquisition of Summit Industrial Construction in early 2024, with an expected revenue contribution of $360-400 million, strengthens the market position. Despite a higher P/E ratio of 23.6 for 2024, the company’s low debt and stable profit margins indicate a positive future outlook with expected annual growth of about 12% for the next three years.

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