Yesterday, I told you about our March Madness stock tournament: The Road to the Next Netflix.
In my real-money portfolio, I’ve already captured gains of 471% in Netflix. My team and I are searching for a company that we believe could be the next Netflix…one that we think will deliver impressive profits to early investors.
Over the next week, you’ll have an opportunity to discover 16 growth stocks that we believe could be the next Netflix. And we’ll even give you an opportunity to get our complete research report on the winner of our March Madness tournament. If you missed yesterday’s Daily Profit and want to learn more about this contest, just click here.
To kick off our March Madness tournament, I’ll start by presenting the 16 growth stocks. These companies are in a variety of sectors ranging from 3D Printing to Wearable Technology. They also range in size, with market capitalizations between $100 million and $6 billion. And every one of them has attractive qualities that could result in big profits.
Let’s get started.
Sector: 3D Printing
Until recently, 3D printers were available only to research labs and universities. As the industry has evolved, the technology is now accessible to consumers with sub-$1,000 printers. Interest from hobbyists, professionals and corporations has made 3D printing one of the red-hot growth sectors of 2014.
3D Systems (NYSE: DDD): 3D Systems is the world’s leader in the emerging 3D printing market. With the market poised to grow to $11 billion by 2021, this stock is poised to capture a decent share of the sales. The company’s sales have already grown 130% over the last two years, and that rapid expansion could continue to fuel the stock price appreciation.
The ExOne (Nasdaq: ZONE): The ExOne also participates in the red-hot 3D printing sector. At one-tenth the size of 3D Systems and with a focus on industrial printing markets, the company is far less well known. But that could spell opportunity for this growth stock, especially after it recently pulled back 35%.
Sector: Internet Content
Internet use now greatly surpasses watching television. Some companies in the business of Internet content are thriving. These digital media companies have figured out how to provide great content to their users, and built a profitable business along the way.
Spark Networks (NYSE: LOV): Spark Networks is in the business of “love.” The company helps single people connect online through its online dating web sites. JDate is the biggest dating site for Jewish people, and is Spark’s primary cash cow. With rapid expansion into other niche dating markets, Spark is under-loved and could post big gains.
Trulia (NYSE: TRLA): Most homebuyers start their search for a new home on the Internet. Trulia is a content company that provides access to real estate listings through its web site and mobile apps. The company gets 35 million visitors to its site each month, and more than doubled its revenues last year.
Sector: Cloud Computing & Data
With the Internet celebrating its 25th birthday earlier this month, the industry may seem mature. But companies today are collecting more data than ever before, and delivering robust solutions to their customers.
DataWatch (Nasdaq: DWCH): Big companies are trying to better understand their data in order to make informed business decisions. DataWatch provides solutions to over 40,000 customers, including 99 of the companies in the Fortune 100. This little-known company in the “big data” sector could be a top performer in 2014.
Demandware (NYSE: DWRE): Nearly every company and government agency is moving its servers to the cloud. Demandware provides cloud solutions to retail companies. This allows retailers like Brooks Brothers and Lands End to operate cutting-edge commerce sites.
You may not think of the food business as being a growth sector. But considering the explosive growth in organics, the popularity of reality food TV shows, and the local food movement, and it’s clear that big changes are underway in the food business.
The Fresh Market (Nasdaq: TFM): For the past 30 years, The Fresh Market has been focused on healthy and organic foods. With more than 100 stores and sales of $1.5 billion, this company is a mini-Whole Foods. Growing interest in healthy and organic foods should fuel growth for this stock in the coming years.
SodaStream (Nasdaq: SODA): Few foods are less healthy than soda. Israel-based SodaStream is trying to change that. With SodaStream, people can now make soda, sparkling water, and flavored drinks at home. With a Super Bowl ad featuring Scarlett Johansson, SodaStream is making a big splash in the U.S.
The video game industry is constantly evolving, with new gaming consoles and interactive gaming. Mobile games have also helped grow the industry by attracting more people to play games on their phones and through social media web sites like Facebook.
Glu Mobile (Nasdaq: GLUU): Glu Mobile is a small publisher of games for smartphones and tablets. The company offers most of its games for free, and charges players as they advance in the game. The popularity of the company’s games is expected to help revenues grow by 30% this year.
Zynga (Nasdaq: ZNGA): The biggest name in mobile games is Zynga. After its IPO in 2011, Zynga shares jumped as high as $14 before crashing back to earth. Now that the stock price has stabilized around $5, it may be a good time to consider buying this mobile game stock as it starts to rebound.
Sector: Energy Technology
Regardless of whether you believe in global warming, you must recognize the rapid changes in the energy sector. New technologies are changing the way we generate and use energy. Companies in the energy technology sector seem poised for profits as consumers, businesses, and utilities work to maximize energy efficiency.
First Solar (Nasdaq: FSLR): Solar farms are being built across the country as people work to use the abundant resource of the sun. First Solar is a leading maker of solar systems for large-scale solar projects around the world. If you believe that demand for solar power will continue to grow, then First Solar stock could be a top performer.
Ormat Technologies (NYSE: ORA): Ormat Technologies may be the future of energy: the company operates geothermal power plants in the U.S., Guatemala, and Kenya. In addition to operating its own plants, Ormat sells technology solutions to other energy companies.
Sector: Wearable Technology
One of the hottest trends in technology is wearable technology. Tech giant Google (Nasdaq: GOOG) is getting into the business with Google Glass. And Apple (Nasdaq: AAPL) has been rumored to be making an iWatch. But countless smaller companies are also innovating with wearable technologies, making this a huge growth opportunity.
Himax Technologies (Nasdaq: HIMX): As a key supplier for Google Glass, Himax is a major player in the wearable tech sector. If Google Glass is a success, then Himax could profit from growing demand for heads-up displays. The opportunity hasn’t gone unnoticed…and the stock has already soared 248% in the last year. Even bigger profits could lie ahead if Google Glass becomes a commercial success.
InvenSense (Nasdaq: INVN): You’ve never heard of InvenSense. But the company’s motion tracking sensors are used in many of the products you use on a daily basis, including smartphones, tablets, gaming devices and Smart TVs. Rising demand for sensor technologies propelled 116% sales growth over the last two years. If that growth continues, this stock could continue to climb.
Eight sectors. Sixteen growth stocks. One winner.
Over the coming days, we will narrow the field down to a Final Four.
And on April 1, I’ll reveal the winner. Just one company will be crowned The Next Netflix. And as a Daily Profit reader, you’ll have an opportunity to get in on this unique profit opportunity.
Editor’s Note: Next week, Ian Wyatt is investing $10,000 in the winning stock of our financial March Madness – the stock with 5-bagger potential he’s calling the “Next Netflix.” And you can join him! You see, he’s revealing all the details of this stock and providing a full analysis of its business in a brand new report that’s being released just after the market opens on Tuesday, April 1st. To make sure you get your hands on this report — for FREE! — the instant it’s published… click here for all the details.