In a late November article, I’d discussed what growth stocks could have a strong finish to 2017. Let’s focus on two growth stocks today that have both had an impressive 2017 and will build on that momentum in 2018.
Jamieson
Jamieson Wellness Inc. (TSX:JWEL) is a manufacturer, distributor, and marketer of sports nutrition products and supplements. Jamieson stock has climbed 43% since its initial public offering price of $15.75 as of close on December 8.
The company released its third-quarter results on November 9. Revenue and net income jumped 45% and 210.2% year over year, respectively. Jamieson saw a boost in revenue from the acquisition of natural health and sports nutrition supplement manufacturer Body Plus, while also reporting 12.2% organic growth in domestic and international volumes. Gross profit climbed 51.2% to $26.4 million, driven by higher volumes and improvement in manufacturing efficiency.
Jamieson also declared a quarterly dividend of $0.08 per share, representing a 1.4% dividend yield at offering.
The London-based market research firm Technavio released a report on the global sports nutrition market in early December. It projected a 9% compound annual growth rate (CAGR) in the market from 2017 to 2021. The Americas possessed over 47% of the worldwide sports nutrition market share in 2016. Technavio also reported growing demand from non-traditional users, which is a great sign for the industry looking ahead.
BlackBerry
Shares of BlackBerry Ltd. (TSX:BB)(NYSE:BB) have climbed 42.6% in 2017. The stock took a hit on December 1 after the company lost a payment dispute with Nokia. An arbitration court ordered BlackBerry to pay $137 million to Nokia.
BlackBerry released its fiscal 2018 second-quarter results on September 28. The biggest takeaway was the record software and services revenue of $196 million, representing a 26% increase year over year. BlackBerry also reported the 14th consecutive quarter of positive adjusted EBITDA growth — $50 million in fiscal Q2 2018.
BlackBerry and Qualcomm, Inc. are also set to expand the partnership in the automotive market. Qualcomm paid out $940 million to BlackBerry in the spring to settle a disagreement over royalties. BlackBerry will use Qualcomm’s hardware in virtual cockpit controllers, electronic control gateways, and even infotainment systems.
In an October article, I’d discussed the growth of the cybersecurity industry, and why BlackBerry was a great target due to its footprint in mobile encryption. However, growth in the autonomous vehicle industry is potentially even more explosive.
In July, Research and Markets projected that the global autonomous vehicle market was expected to grow at a CAGR of 39.6% from 2017 to 2027. The firm estimated the market would reach $126.8 billion by 2027.
Which should you buy?
Jamieson and Blackberry are both high-quality growth stocks to store in 2018 and beyond, but I prefer the latter as a buy as we enter the final weeks of 2017. BlackBerry has made huge strides in its transition to specialize in enterprise software. The company has established a strong footprint in several explosive industries, including cybersecurity and autonomous vehicles. Priced at $13.18 as of close on December 8, I still love BlackBerry as a long-term buy-and-hold stock.
