7 Stocks to Target for Triple-Digit Returns in 2023

The U.S. government just revised Q1 GDP to 2% from 1.3%, which tells us, despite the frantic warnings of many bearish economists, a recession is not likely. In addition, the labor market remains strong, as new applications for unemployment benefits sank by 26,000 to 239,00 last week. That was well below the average estimate of 260,000. Also boosting stocks are the artificial intelligence and green energy booms.  All of which should boost the entire stock market, and growth stocks, in particular. That said, here are some of the top stocks to buy now.

Stocks to Buy: Rivian (RIVN)

EV startup Rivian (NASDAQ:RIVN) says demand for its SUV, the R1S, has been quite intense. In fact, the automaker intends to ramp up production of the SUV in the second half of 2023. The company also expects the model to account for 70% of the total EVs it produces in the second half.

It seems that RIVN has a big hit on its hands with the R1S. That situation, in combination with the huge number of delivery vans that the automaker is making for Amazon (NASDAQ:AMZN), should ensure that there will be more than enough demand for RIVN’s EVs to lift its financial results tremendously over the next six month. Moreover, investors will start to see that the company’s long-term demand outlook is quite powerful

Meanwhile, the demand for Rivian’s pickup trucks should get a lift from the bankruptcy and likely liquidation of Lordstown Motors (NASDAQ:RIDE), which also made pickup trucks. Finally, Rivian’s upcoming SUV, the R2, will be priced at a relatively affordable $40,000 to $60,000, enabling the company to attract many new customers who can’t purchase its current, much more expensive, EVs.

Stocks to Buy: Xpeng (XPEV)

Analysts are upbeat about the sales of Chinese EVs in the second half of the year, which could be a solid catalyst for Xpeng (NYSE:XPEV).

The automaker has launched a new SUV, the G6, which is expected to compete with Tesla’s (NASDAQ:TSLA) SUV, the Model Y. In addition, I’m bullish on the company’s outlook because of its state-of-the-art self-driving system, which “is so advanced that it is being tested on public roads as an autonomous-driving system,” as I reported in a previous column. Given all these points, I believe that Xpeng, which has already climbed 19% in 2023, could double this year, making it a top stock to buy at this point.

Stocks to Buy: Super Micro Computer (SMCI)

As I noted on June 13,  Super Micro Systems’ (NASDAQ:SMCI) servers “boast improved thermal capacity, supporting high-performing CPUs and GPUs – vital for AI.” While the stock is already 187% since the start of the year, I believe it could easily double again in the second half. First, its P/E ratio, which stands at 22.2x, remains rather low.  Secondly, companies are preparing to substantially invest in AI. In addition, the Street remains quite enamored with the technology.

Helping, analysts at Loop Capital recently increased its price target on SMCI to $200 from $150, maintaining a buy rating. Also, Investor’s Business Daily gives SMCI stock a Composite Rating of 98 out of 99 and an Accumulation/Distribution Rating of A, showing that institutions have been snapping up a great deal of the shares in the last 13 weeks.

Stocks to Buy: iCAD (ICAD)

iCAD (NASDAQ:ICAD), which develops artificial intelligence tools used to detect breast cancer, received good news last month. All after the U.S. Preventive Services Task Force proposed changes in its guidelines on breast cancer screening. Under the new proposal, women would be advised to start receiving mammograms at age 40, versus the current recommendation of age 50. Since iCAD partners with companies that provide mammograms, the tech firm should benefit significantly from the change.

In addition, CEO Dana Brown recently noted ICAD would pursue a new “GPT powered digital care platform, access to elective risk assessments and other personalized predictive scoring solutions, pursuing payer and reimbursement strategies to get risk assessments and AI red screenings covered, partnering with large employers with women’s health initiatives to provide AI-powered mobile screening services on campus.”

Stem (STEM)

Stem (NYSE:STEM) has developed an AI-based platform, Athena, that helps companies manage electricity flows from renewable energy. The company explains that Athena’s advanced AI and machine learning capabilities “analyze a variety of real-time data from solar, storage, and electric vehicle infrastructure assets against external factors like weather, utility rates, and grid constraints.”

Also validating Athena’s appeal is the company’s rapid growth, as its top line soared 63% year-over-year last quarter. Moreover, Stem expects to start generating positive EBITDA, excluding certain items, in the second half of the year. The shares have a very low forward price-to-sales ratio of just over one at the moment. The valuation is especially attractive given the company’s rapid growth and the fact that it’s closing in on profitability.

MongoDB (MDB)

MongoDB (NASDAQ:MDB) develops database software. In the first quarter, its profit, excluding certain items, soared an incredible 180% versus the same period a year earlier, and the company predicted that its Q2 EPS would come in at 42 cents to 46 cents, way above analysts’ average outlook at the time of 14 cents. And “Over the past eight quarters, revenue growth has ranged from 29% to 57%,” Investor’s Business Daily noted.

Also importantly, MDB recently announced a new deal with Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Cloud. According to the database firm, the changes will enable MongoDB to incorporate a greater amount of AI into its products.

And in the wake of MongoDB’s Q1 results, Goldman Sachs on June 2 hiked its price target on the shares to $420 from $280. “We anticipate MongoDB will be a direct beneficiary of accelerating app development/deployment,” Goldman stated. The bank kept a “buy” rating on the shares.

Fortinet (FTNT)

One of the strongest names in the cybersecurity sector, Fortinet (NASDAQ:FTNT) already surged 53.5% in 2023 as of the market close on June 29.

The company reported very strong first-quarter results, with it its top line soaring 32% year over year. Also, its operating income jumped 81% year over year. Seeking Alpha contributor Dair Sansyzbayev also noted that Fortinet’s margins have improved over the year, and the columnist estimates that the shares were undervalued by 40%.

As more items get connected to the internet, the need for cybersecurity products will only keep rising.

On the date of publication, Larry Ramer owned shares of STEM, ICAD, SMCI, RIVN, and XPEV. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.