Finding millionaire-making stocks is not easy. While we can’t tell the future, we can do the next best thing: think forward, gauge a company’s room for growth, and determine how it intends to reach the next level.
Here lies the beauty of mid-cap stocks, a market cap category sometimes overlooked in favor of large and mega caps. For the uninitiated, mid-cap stocks trade with a market cap between $2 billion and $10 billion. Some consider it the sweet spot between growth potential and stability because the business is already established while still having more room for growth.
Investors can do their research to find some of the best long-term superstars. Or, better yet, I can lend you a hand.
So, let’s look at three mid-cap stocks with “million-maker potential.” I screened the market using the criteria below to get my list:
- Must have a market cap of $2-10 billion,
- At least three consecutive fiscal years of positive gross profit margin growth
- Buy ratings from analysts,
- At least three consecutive fiscal years of positive revenue and earnings growth.
I then sorted the list based on how much their gross profits increased during the last three years from highest to lowest to ensure that I don’t only focus on revenue and earnings growth but also a higher quality of growth over time.
ADMA Biologics (ADMA)
One of the leaders in specialty plasma-derived products, ADMA Biologics (NASDAQ:ADMA) is a biopharmaceutical company specializing in immunodeficient patient treatments. The company has three U.S. FDA-approved plasma-derived biologics:
- ASCENIV: Helps raise the body’s immune system to treat PIDD.
- BIVIGAM: Used for the treatment of primary humoral immunodeficiency (PI)
- NABI-HB: Provides patients with enhanced protection against the hepatitis B virus.
ADMA recently announced that the FDA has approved extended room temperature storage for ASCENIV and BIVIGAM. This approval helps with storage constraints that the drugs were experiencing due to limited refrigeration space.
ADMA’s last three fiscal years have seen a remarkable financial turnaround. Gross margins in FY’20 were originally at -45.17%, growing to 34.44% in FY’23. This showcases the company’s operational efficiency and cost management advancements.
Not only that but both revenue and earnings improved. Revenue grew from $42.22 million in FY’20 to $258.22 million in FY’23. While the company is still operating at a loss, losses have shrunk from $75.75 million in FY’20 to $28.24 million in FY’23.
If everything goes according to plan, the company will be profitable in 2024, which will justify Wall Street’s strong buy rating. So, if you’re looking for millionaire-making stocks, look no further than ADMA.
Corporacion America Airports SA (CAAP)
One of the leading operators of private airports worldwide, Corporacion America Airports SA (NYSE:CAAP) specializes in the acquisition, development, and operation of airport concessions in various parts of Europe, Eurasia, and Latin America. The company has scaled and driven continuous growth and performance with its deep operational expertise.
Over the past three fiscal years, the company substantially improved its financial performance and operational efficiency. Total revenue surged from $607.36 million in FY’20 to $1.4 billion in FY’23, and gross profit margins improved from negative 7.6% to positive 34.67% over the same period. At the same time, the company went from losing $361.89 million in 2020 to steadily improving its bottom line, with the latest annual net income coming in at $226.47 million.
These consistent improvements, successful recovery, and growth trajectory have earned CAAP stock a strong buy rating from top brokers like CitiGroup (NYSE:C) and Goldman Sachs (NYSE:GS), making it a strong contender for the top millionaire-making stocks.
Oceaneering International (OII)
Oceaneering International (NYSE:OII) is an energy and equipment services company specializing in robotics for various industries like offshore energy, aerospace, manufacturing, and other sectors. The company has four main segments:
- Manufactured Products: Distribution and connection systems.
- Subsea Robotics: Remotely operated vehicles and surveying services.
- Integrity Management & Digital Solutions: Inspection services, corrosion management, and asset integrity management.
- Offshore Projects Group: Various subsea solutions.
Oceaneering’s Integrity Management and Digital Solutions segment recently announced its collaboration with Global Design Innovation, Ltd., which aims to provide customers with efficient solutions for digital asset management services and remote support.
In 2020, Oceaneering International’s revenue was at $1.83 billion. The company consistently improved that in the last couple of years, with FY’23’s revenue reaching $2.42 billion. Meanwhile, gross profit margins started from a measly 8.97% in FY’20, almost doubling to 16.45% in FY’23
Most notably, its bottom line from the same period started from a loss of nearly $500 million to a $97.40 million profit. Analysts rate Oceaneering International as a buy. So if you’re looking for millionaire-making stocks, OII stock might be for you.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.