Sometimes finding the best stocks for aggressive investors to buy is a project worth considering.
Yes, investing can be intimidating when you’re looking at stocks for aggressive investors to buy. After all, you’re dealing with your personal nest egg and trying to ensure your retirement or your family’s future. There’s a lot at stake, and you should use some deliberation when you’re investing.
But at the same time, greater risks mean greater rewards. The difference between being a safe investor and dabbling in stocks for aggressive investors may mean settling for a 5% gain when you could have gotten a 20% gain.
I’m all for being an aggressive investor, but it’s important to be smart about it. I like using a small percentage of my portfolio for stocks for aggressive investors as opposed to safety stocks. But I don’t put too much of the portfolio in that basket. Many investors will tell you that you shouldn’t put more than 5% to 10% of your portfolio into aggressive, volatile stocks.
That comes down to your sense of risk management. But at the very least, you can use the Portfolio Grader tool as a guideline to help you identify which aggressive plays are highly rated.
After all, there’s no sense in being crazy when you’re choosing to be an aggressive investor, right? Here are seven to consider now.
TH | Target Hospitality | $15.28 |
NINE | Nine Energy Service | $10.27 |
AEHR | Aehr Test Systems | $31.26 |
ARHS | Arhaus | $14.24 |
ASRT | Assertio Holdings | $6.09 |
SHLS | Shoals Technologies Group | $25.67 |
DRCT | Direct Digital Holdings | $4.59 |
Target Hospitality (TH)
You could make an argument that Target Hospitality (NASDAQ:TH) is one of the most unusual oil and gas stocks you can buy. That’s because Target really has nothing to do with the actual drilling or transporting of oil and gas, but it’s still an important puzzlepiece.
The company maintains 16,000 rooms across 31 locations for the employees of oil, gas and mining companies. It calls itself the largest specialty rental and hospitality services company in the U.S.
Its operations are in the Bakken Basin in North Dakota, as well as in the Permian Basin that includes Texas and New Mexico.
Target Hospitality only has a market capitalization of $1.4 billion, but the company’s been a big winner over the last year, gaining more than 360% in stock price. Analysts give a consensus price target of $21.33. That indicates another 44% upside in the short term.
TH stock has an “A” rating in the Portfolio Grader.
Nine Energy Service (NINE)
Nine Energy Service (NYSE:NINE) is responsible for getting a well ready for production after it’s been drilled, running tubes and sometimes cementing the casing.
The stock has been on a roll, consistently beating analysts’ estimates for revenue and earnings. In the third quarter, NINE posted revenue of $167.43 million which was up 80.3% from a year ago and beat estimates of $154.2 million. Its EPS of 39 cents per share was better than expectations of 16 cents per share.
Nine Energy, which is headquartered in Houston, is expected to report fourth-quarter earnings on March 8, and the Zack’s consensus estimate is for revenue of $166.3 million. If it hits that mark it would be a 58.3% increase from a year ago.
NINE stock is up 230% over the last six months and has an “A” rating in the Portfolio Grader.
Aehr Test Systems (AEHR)
Aehr Test Systems (NASDAQ:AEHR) provides test and reliability qualification equipment for semiconductors. It plays a key role in a field that’s becoming more important as the demand for semiconductors continues to increase.
The California company makes the burn-in equipment used to produce silicon carbide chips that are commonly used in electric vehicle production.
And while the company’s stock saw a big drop this week when Tesla (NASDAQ:TLSA) announced it would create a new power inverter that would reduce its reliance on silicon carbide, Aehr officials say they are confident the announcement won’t significantly affect its market.
Indeed, the company’s showing strong earnings as of late, with revenue in the quarter ending in November up 54% on a year-over-year basis to $14.82 million.
Aehr is a gamble for any aggressive investor, and it bears watching carefully following the Tesla announcement. Currently, AEHR stock has an “A” rating in the Portfolio Grader.
Arhaus (ARHS)
As an omnichannel retailer of premium home furnishings, Arhaus (NASDAQ:ARHS) is a gamble because homeowners may be less inclined to spend on nice furniture if they think a recession is at hand. But so far, Arhaus is defying those expectations.
After a dip last year, as investors began panicking over the softening housing market, Arhaus is showing a lot of strength. Shares are up 90% since mid-October.
Even if the company’s growth begins to slow again, I have faith that Arhaus will return to high-growth mode pretty quickly. Earnings for the last year have all topped analysts’ expectations, with third-quarter numbers including revenue of $320 million which was 57.4% better than a year ago.
ARHS has an “A” rating in the Portfolio Grader.
Assertio Therapeutics (ASRT)
Illinois-based Assertio Holdings (NASDAQ:ASRT) is a pharmaceutical company that specializes in creating drugs for prescription neurology, inflammation and pain management.
Its drugs include Cambia, which treats migraines in adults; Indocin, which is used to treat pain and swelling caused by arthritis or gout; and Otrexup, which is used to treat rheumatoid arthritis.
Assertio used to be a penny stock, but no longer – the stock price is up 137% over the last six months to climb to nearly $6 per share. And the consensus analyst price target is $7.38, so ASRT stock has a runway of 28% remaining.
Earnings for the third quarter kept the good news coming. Revenue of $34.21 million was an increase of 34% from a year ago and beat analysts’ estimates of $31.35 million. Earnings per share doubled expectations, coming in at 22 cents per share versus predictions of 11 cents per share.
ASRT looks to keep the momentum going when it reports fourth-quarter earnings on March 8. It has an “A” rating in the Portfolio Grader.
Shoals Technologies Group (SHLS)
Tennessee-based Shoals Technologies Group (NASDAQ:SHLS) provides electrical balance of system solutions for solar energy projects. That’s an interesting place to be considering the growing interest in clean energy.
But I really like it for its work on developing an electric vehicle charging infrastructure. The U.S. is going all-in on building an EV network, committing more than $1.5 billion to help build EV chargers that will cover 75,000 highway miles across the country.
It’s unclear if Shoals can profit from that business, but it’s a gamble worth taking if you’re an aggressive investor. The stock has been pretty volatile over the last six months, and currently is showing a loss. But it’s also showing some strong growth with fourth-quarter revenue of $90.82 million which was up 51.8% from a year ago.
SHLS stock has a “B” rating in the Portfolio Grader.
Direct Digital Holdings (DRCT)
Direct Digital Holdings (NASDAQ:DRCT) is in the advertising/technical business.
Its end-to-end advertising platform provides advertising technology and campaign optimization for its clients. It helps small- and mid-sized clients reach targeted potential customers on a variety of media devices.
It claims to manage 90,000 clients monthly, generating more than 100 billion impressions per month across various media channels and apps. It owns three companies – Colossus SSP, Huddled Masses and Orange 142. Colossus SSP is a sell-side platform for advertisers of all sizes, while Huddled Masses and Orange 142 cater to middle-market advertisers.
Granted, the advertising and media markets are challenging, which is why Direct Digital Holdings is a stock for aggressive investors. If you have confidence in DRCT’s growth story, then the investment could give you outsized returns.
DRCT stock is up 34% in the last six months, and analysts give it a consensus price target of $7.38, meaning it has a potential runway of 68%.
DRCT stock has a “B” rating in the Portfolio Grader.
On the date of publication, Louis Navellier had a long position in ARHS and SHLS. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article had a long position in TSLA. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.