Yahoo Finance 2 Speculative Stocks With Explosive Growth Potential
Investors are best served by allocating most of their capital to large-cap, profitable, institutional-quality stocks. However, in a raging bull market like 2023, small allocations to speculative stocks can pay big dividends. Below are 2 small, speculative stocks with enormous potential:
Joby Aviation (JOBY)
Joby Aviation is an electric vertical takeoff and landing (eVTOL) developer. Though flying cars were once a pipe dream, recent developments suggest that the goal of flying taxis may be closer than most people think.
Breaking the Red Tape
JOBY shares flew higher by 40% on June 28th after the company was granted a special permit to fly its first aircraft built on its production line.
$100 Million Investment
The next day, shares soared another 11% after the company secured a $100 million investment from SK Telecom, South Korea’s leading telecom company.
Technical Set Up
Joby shares are forming a bull flag pattern and are pulling back to the 50-day moving average for the first time since breaking out.
Image Source: Zacks Investment Research
Overstock.com (OSTK)
Overstock.com is an e-commerce provider. The company sells a broad range of products such as furniture, home décor, area rugs, bedding and bath, home improvement, outdoor, and kitchen and dining items. Yesterday, the company reported a loss of $.02 per share, which beat the Zacks Consensus Estimate of -$.09. Though the company is still unprofitable, the stock has 3 major catalysts, including:
Bed Bath & Beyond Acquisition
Earlier this year, OSTK completed the acquisition of specific intellectual property (IP) assets from Bed Bath and Beyond. Though it is early, management says that the investment is already producing results in its Canadian market. In last night’s earnings call, CEO Jonathan Johnson said, “The successful launch and early performance of our Bed Bath & Beyond business in Canada has been encouraging. The Bed Bath & Beyond brand is strong. In Canada, customers want to buy – and are comfortable buying – from the new Bed Bath & Beyond website.”
tZero
tZero is a platform allowing buyers and sellers to trade through a “dark pool.” tZero aims to be the leading platform for Initial Coin Offerings (ICOs) in the crypto space. While tZero is still getting off the ground, it is a catalyst that few investors are factoring in.
Heavy Accumulation
At the time of this writing, OSTK shares are gapping higher by 14% on volume 4x the norm. Price and volume action of this magnitude is a sign of institutional accumulation.
Image Source: Zacks Investment Research
Conclusion
Joby Aviation and Overstock.com are two high-octane stocks with immense potential. Because the stocks are highly volatile and speculative, investors who decide to invest should position size small relative to their portfolio. That said, even a small allocation to these stocks can bear fruit if their goals are met.
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Overstock.com, Inc. (OSTK) : Free Stock Analysis Report
Joby Aviation, Inc. (JOBY) : Free Stock Analysis Report
