These 3 microcaps are off to a rip-roaring first half of 2018. These stocks have gained over 100% in 2018 for a variety of reasons, and some may be on their way to multi-year gains. Let’s take a look at what has propelled them this far.
If you haven’t heard of the video game Fortnite you are definitely living under a rock. This freemium game has taken the gaming world by “storm” (see how I did that fellow Fortniters). While the game is free, one thing you must have to play Fortnite is a way to hear John Wick sneaking up on you.
Enter our friends from Turtle Beach Corporation (NASDAQ: HEAR). Turtle Beach provides, among other things, gaming headsets. The company has been “sky-building” right along with Fortnite so far this year gaining over 1,090%, as of July 2018.
Even after it’s rise to over $22, the price-to-earnings (P/E) ratio for Turtle Beach still stands at only 14. Fortnite shows no signs of slowing down, releasing new versions every few months. If HEAR keeps pace, the stock can easily continue to rise.
BioLife Solutions, Inc. (NASDAQ: BLFS) is using the tried-and-true method of selling picks and shovels to the biotech market. This seems to be working well for them, as the stock is up 200% so far in 2018 from $6 to $18.
BioLife makes bio-preservation tools that keep cells and tissue healthy during the research process by safely freezing biological material. This lets biotechnology companies manufacture, distribute and clinically administer biological source material safely.
Judging from their earnings growth, they are doing a great job for their customers. Earnings have risen 62% this year, and are expected to rise 1,500% next year. With the biotechnology market booming, there should be a continued and increasing demand for BioLife’s products.
After a rocky start last year following its IPO, Funko, Inc. (NASDAQ: FNKO) has turned the tide as the stock has popped over 100% since closing at $6.65 to close out 2017. The stock had difficulty with analysts because it was not a pure play toy or collectibles company.
Funko President, Andrew Perlmutter, describes the company as a “purveyor(s) of pop culture.” Perhaps investors have gotten on board as the company has increased year-over-year quarterly sales by 38%. And, year-over-year quarterly earnings per share have skyrocketed by over 130%.
With a forward P/E ratio of only 16, Funko shares may have more room to rise. The continued popularity of the Avengers, Star Wars, and Harry Potter, for which Funko has licensing deals and should keep the stock on an upward trajectory.
While Turtle Beach, BioLife Solutions, and Funko have already put in more than solid gains for 2018, the catalysts driving all three stocks are still in place. If the companies can continue to execute the rest of 2018 and beyond may hold even further gains.
Disclaimer: The author and Spotlight Growth has no positions in any of the stocks mentioned in this article. Nor does either party currently have any relationship, or any other conflicts of interest, with any of the companies mentioned in this article. This content is meant for informational and entertainment purposes only and should not be meant as a recommendation to buy or sell any securities. Please visit a licensed financial representative to determine what investments are right for you.
Article By: Steven Adams
