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3 Monster Growth Stocks That Could Reach New Highs

Out on Wall Street, things are always changing. Share prices fluctuate, new players make their market debuts, the macro environment gets shaken up and long-term trends shift. That said, one thing remains the same: growth is the name of the game. Growth stocks consistently score a spot on investors’ wish lists, given their potential to deliver returns. This growth potential goes above and beyond the norm, as these plays have already posted some spectacular gains in 2020, with the upside set to keep on coming in the long run. Knowing what you’re looking for is one thing, but how are investors supposed to find these opportunities? One strategy is to take a cue from Wall Street pros. Bearing this in mind, we used TipRanks’ database during our search for exciting growth names, according to the analyst community. Locking in on three stocks that fit the bill, each analyst-backed ticker stands to notch more gains on top of their impressive year-to-date climbs. Here are all of the details. Sunnova Energy International (NOVA) First up we have Sunnova Energy International, which is one of the top providers of residential solar and energy storage services. Even though it has already jumped 160% year-to-date, several analysts think this name has more room to run. After speaking with NOVA’s founder and CEO John Berger, five-star analyst Joseph Osha, of JMP Securities, is even more confident in its long-term growth prospects, noting the “stock appears significantly undervalued.” Highlighting the storage business in particular, the analyst believes it is a major point of strength. “NOVA has been effective at driving storage attach rates higher, and has managed to make its dealer-focused business model perform well. The demand environment for storage has strengthened during the last 60 days, and we believe that we may be at an inflection point for the industry,” Osha commented. Looking more closely at attach rates, the figure landed at 34% in Q2. Part of this strong result was driven by the company’s move into island markets, with Berger mentioning that the attach rates in Hawaii, Guam, Saipan and Puerto Rico are effectively 100%. Additionally, rates are improving in Texas and Florida. Expounding on this, Osha stated, “Aggregating all of that together yields a 34% number that Mr. Berger believes is going to grow, albeit with very different dynamics in different markets. We also note that NOVA is selling storage to existing customers, and those sales are not reflected in the stated attach rate.” Reflecting more positives, Osha says NOVA’s relationships with Tesla and Generac set it apart, with it also choosing the ideal dealer partners. What’s more, the overall storage market appears solid, and cell manufactures are struggling to keep up with the demand. To this end, Berger argues the space is “as strong as you think it would be with attach rates continuing to rise in new geographies and revenue per customer growing as well.” While some investors have brought up concerns regarding competition from Sunrun (RUN), Osha thinks that even though RUN’s approach is working relatively well, the “smaller developers may lose out” in the end. As a result, the analyst sees room for a larger valuation for NOVA. In line with his optimistic approach, Osha stayed with the bulls, reiterating a Market Outperform rating and $43 price target. Investors could be pocketing a gain of 48%, should this target be met in the twelve months ahead. (To watch Osha’s track record, click here) Are other analysts in agreement? They are. Only Buy ratings, 10 to be exact, have been issued in the last three months. Therefore, the message is clear: NOVA is a Strong Buy. Given the $33.70 average price target, shares could surge 16% in the next year. (See Sunnova Energy International stock analysis on TipRanks) Big Lots (BIG) As a closeout retailer, Big Lots offers its customers everything from groceries and household essentials to furniture and electronics at an affordable price. With a solid standing going into 2021, some members of the Street believe its 87% year-to-date gain is only the beginning. Representing Piper Sandler, five-star analyst Peter Keith tells clients that going forward, “the set-up remains highly favorable.” The company’s guidance for Q3 comps was above his estimate, but the call for EPS of $0.50-$0.70 (versus Keith’s $0.12 forecast) was a major surprise. “Not only has Q3 historically been a negative EPS quarter, but also BIG is guiding huge EPS upside despite ~$12 million of incremental rent expense (from selling its DC’s) and ~$10 million of COVID expenses,” Keith noted. To this end, the analyst bumped up his Q4 comp estimate….