IWhether you’re following cryptocurrencies or just the investment world in general, the excitement and cover that surrounds Shiba inu (CRYPTO: SHIB) has been hard to miss in recent months. It’s not hard to see why. Although it has fallen by around 50% from its highest standard of living, the price of the token has still risen by over 56,000,000% during this year’s trading.

As impressive as the cryptocurrency race is, it is possible that Shiba Inu has peaked and investors may be looking for other candidates with significant earning potential but with lower risk profiles. With that in mind, we asked a panel of Motley Fool contributors to profile the stocks capable of generating explosive gains. Read on to see why they think Lucid group (NASDAQ: LCID), Akamai Technologies (NASDAQ: AKAM), and Impinj (NASDAQ: IP) could be big winners.

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A hyper-growing stock of electric vehicles that gets off to a flying start

Daniel Foelber (Lucid Group): Rivian AutomotiveLast week’s initial public offering added fuel to the already burning electric vehicle (EV) fire. Investors in Shiba Inu are likely to have a high risk and high reward disposition. And while Shiba Inu lacks the fundamentals to justify an investment, Rivian’s peer Lucid is on a solid path to EV stardom.

Lucid stock prices were all over the place last week as the company’s third-quarter conference call so impressed investors that the stock arguably got a bit ahead of itself. Lucid has only been shipping cars for a few months now, and his inventory is likely to be volatile for the foreseeable future. However, Lucid has so far shown its ability to deliver on its promises and has exciting growth opportunities in the works for next year.

Its manufacturing facility in Arizona is already large enough to meet a production demand of 20,000 units in 2022. On its third quarter conference call, Lucid said Saudi Arabia is currently its second country in terms of demand. , followed by China. It intends to eventually build factories in these countries as it expands internationally.

In the United States and Canada, the company increased the number of its showrooms and service centers to 16, just below its 2021 target of 20. The valuation of about $ 75 billion of Lucid is high considering the company has yet to prove whether it can meet customer demand, produce low-end cuts on a large scale, and make a profit. But given Lucid’s impressive management team and technological lead over You’re here and the rest of the competition, it stands to reason that this is a better buy than a house of cards asset like Shiba Inu.

The lesson here is that if you want to take a risk on a crypto stock, it needs to have an investment thesis. Lucid is undeniably expensive, but there are clear mid- to long-term goals that you can hold the company accountable for. By comparison, Shiba Inu lacks intrinsic value and is a silly bet at best.

Closer than his rivals

James brumley (Akamai Technologies): The cloud computing market is admittedly crowded. On a related note, investments in cloud computing are quite crowded. In other words, most of these names are at least fairly valued – if not overvalued – due to the demand for some sort of exposure to the growing industry.

There is, however, a curious exception to this trend. Akamai Technologies is a leading name in the industry, but even with its 9% rebound from October lows, this stock is still only trading where it was in July of last year. I think this is a big mistake rooted in a misunderstanding of what Akamai is and does.

Of course, many cloud computing players offer services similar to Akamai’s cloud security, content management, and edge computing platforms. What is not taken into account, however, is how important the company’s application programming interface (API) security solution has become in recent months. This has been a somewhat neglected area of ​​cybersecurity lately, and hackers know it. A study by Salt Labs suggests that the number of API-based attacks tripled in the first half of this year. This of course has prompted companies to seek more relevant cybersecurity protection, and these organizations are finding that few vendors are as willing to offer a specific solution as Akamai.

That’s not the only reason to own the name, but it’s certainly a good reason, reinforced by the fact that the stock is currently valued at less than 19 times next year’s projected earnings.

This small cap stock has what it takes to be a big winner

Keith Noonan (Impinj): Shiba Inu’s performance this year has been nothing short of amazing, and it is not excluded that the cryptocurrency will rebound from recent sales and continue to reach new highs. However, even investors with a very high tolerance for risk can benefit from pursuing other attractive options, and Impinj is a company that I believe will bring big gains to shareholders over the long term.

Impinj is a manufacturer of radio frequency identification (RFID) tags, sensors and software. If an object is equipped with an RFID tag and is within range of a scanner, a user can display a map showing exactly where that object is located. RFID chips can also store and transmit data, and this data can be updated. It’s kind of like the barcode system on steroids.

Impinj’s solutions have already been adopted for applications such as airline and retail baggage tracking, including Nike, Zara and Macy’s, but there are an incredible number of other potential use cases for enterprise technologies. As factory and manufacturing processes become more and more automated, I think the adoption of RFID technologies is set to explode. Another category that could generate strong growth is healthcare and hospital services. If you’re looking for innovative companies tapping into young, growing markets, Impinj ticks these boxes.

When it comes to potential multibaggers, I also like to look for companies that are still in relatively early stages of growth. In most cases, it is easier for a company to go from a $ 5 billion valuation to a $ 50 billion valuation than it is for a $ 50 billion company to reach. a market capitalization of $ 500 billion. It’s not a hard and fast rule, but most businesses reach a point where their size means that it becomes more difficult to grow in their market and find new sales streams.

With a market cap of around $ 2 billion, Impinj is still small enough to generate huge gains, and I believe the company has the potential to deliver life-changing returns for patient investors.

10 stocks we prefer over Lucid Group, Inc.
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Daniel Foelber owns shares of Lucid Group, Inc. and has the following options: short-term calls of $ 20 in December 2021 on Lucid Group, Inc., short-term calls of $ 20 in February 2022 on Lucid Group, Inc. , short-term calls in November 2021 at $ 22 on Lucid Group, Inc., and short-term calls of $ 23 in November 2021 on Lucid Group, Inc. James Brumley does not have a position in any of the stocks mentioned. Keith Noonan owns shares in Impinj. The Motley Fool owns shares and recommends Nike and Tesla. The Motley Fool recommends Impinj. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.