3 Growth Stocks That Could Be Millionaire-Makers: May Edition

Joel Baglole

Tue, May 21, 2024, 12:36 PM 4 min read

A lot of great stocks are flying under the radars of investors. There are plenty of lesser known stocks that are growing by leaps and bounds right now. These are stocks of smaller companies that are nevertheless well run, have strong earnings and big catalysts driving them to new heights. They may get little media attention and not be household names, but they can certainly help to boost a portfolio.

Some of these lesser known stocks could even be millionaire-makers given their strong outperformance and potential for continued growth. Such stocks are not always easy to find. But when one of these diamonds in the rough is discovered, they’re worth holding onto for the long haul. Here are three growth stocks that could end up being millionaire-makers: May edition.

IES Holdings (IESC)

A concept image of electricity flowing between two disconnected electric cables.

Source: ESB Professional / Shutterstock.com

IES Holdings (NASDAQ:IESC), formerly known as Integrated Electrical Services, is a small company. It employs about 8,000 electricians who wire up everything from houses in subdivisions to high-tech data centers. Currently, IESC stock has a market capitalization of $3.23 billion and is trading at 21 times future earnings estimates. That said, the stock is up 765% in the last five years having more than tripled in the past 12 months.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Already in 2024, IES Holdings’ share price has doubled. The company recently reported its latest earnings, and it was a blowout. For what was its fiscal second quarter, IES Holdings’ revenues rose 24% year over year and its operating income jumped 146%. EPS increased from $1.07 last year to $2.29 in fiscal Q2 of this year. IES reported having $106 million in cash on hand and no debt at the end of the quarter.

Despite the company’s incredible success and the huge growth in its share price, no analysts on Wall Street cover IESC stock. Kudos to investor Eddy Elfenbein for drawing attention to the company and stock in his weekly “Crossing Wall Street” newsletter.

Vistra Corp. (VST)

A Vistra (VST) office on display in Warsaw, Poland.

Source: Konektus Photo / Shutterstock.com

Another industrial stock worth considering is Vistra Corp. (NYSE:VST). An electric utility and power producer, Vistra just became the newest stock to join the S&P 500 index, replacing Pioneer Natural Resources, the oil and gas company that was acquired by Exxon Mobil (NYSE:XOM). Vistra’s inclusion in the S&P 500 comes after the company’s share price more than doubled (up 141%) so far this year. Through 12 months, VST stock has risen 275%, giving the company a market capitalization of $32 billion.

Already, VST stock is the second best performer in the S&P 500 index, behind only Super Micro Computer (NASDAQ:SMCI). Key to the company’s success has been expectations that demand for its electricity will grow exponentially alongside energy-intensive artificial intelligence (AI) models and applications. Some media have referred to electricity as the fuel of AI. This narrative is helping to power VST stock to new heights, benefiting the company’s shareholders.

Viking Therapeutics (VKTX)

Source: aslysun / Shutterstock.com

Investors worried that they’ve missed out on the monster growth in weight loss drug manufacturers Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY) should consider the new kid on the block, Viking Therapeutics (NASDAQ:VKTX). Early data on trials of Viking’s weight-loss medication has some analysts calling it a “best-in-class” obesity treatment. The hype has VKTX stock up 268% so far this year.

The market for weight loss medications is forecast to be worth $100 billion by the end of the decade, meaning there’s plenty of room for competition. Viking Therapeutics has emerged as a true contender against both Novo Nordisk and Eli Lilly. While Viking’s weight loss drug is unlikely to receive regulatory approval and come to market until 2027, at the earliest, there might be another reason to buy VKTX stock. Wall Street is abuzz with possible takeover rumors related to Viking Therapeutics.

On the date of publication, Joel Baglole held a long position in LLY. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.