7 Under-the-Radar Growth Stocks With 200% Growth Potential

Rising interest rates and growing fears of a recession have sent growth stocks plunging in the past year. Yet while some growth names have deservingly moved to lower prices and could keep tumbling, there are many under-the-radar growth stocks that have either become oversold or have seen their performance blunted by investors’ poor sentiment.

Although it’s up for debate when exactly the bull market for growth stocks will return, company-specific catalysts may be enough to enable these names to triple within a few years.

In fact, some of these growth stocks could rise five-fold or even ten-fold, depending on whom you ask.  But with big potential gains comes big risks. Each of these stocks, most of which are micro-caps, are going to be far more volatile than larger growth stocks.

Nevertheless, if you have a high risk tolerance and are searching for opportunities in today’s challenging market conditions, these seven under-the-radar growth stocks may be excellent choices for you.

Canoo Inc. (GOEV)

Despite making headway toward getting out of the pre-revenue stage,  EV maker Canoo (NASDAQ:GOEV) has fallen straight into the market graveyard. A major reason for that is probably worries that the company will have to sell more shares of its stock, diluting existing shareholders.

To fulfill an order from Walmart (NYSE:WMT) for 4,500 of its electric delivery vehicles, as well as a 3,000 vehicle order from fleet leasing provider Zeeba, Canoo needs to raise more capital. That will likely be done via the sale of additional shares of GOEV stock. But while shareholder dilution could limit the stock’s gains, this factor may be more than baked into Canoo’s shares.

If Canoo’s revenue next year meets or beats analysts’ average estimate of around $408 million and if this budding EV manufacturer locks down more large orders, signaling it’s on a path to consistent profitability, GOEV stock could triple.

KonaTel (KTEL)

This isn’t the first time I’ve argued that KonaTel (OTCMKTS:KTEL) is one of the best under-the-radar growth stocks. Recently, I made the case that this micro-cap telecom company, which trades on the over-the-counter (or OTC) market, has a good chance of becoming a huge firm.

KonaTel, a provider of government-subsidized phone and mobile data services, has been growing at a healthy pace. During the second  quarter, its revenue jumped more than 75% year-over-year. Operating in a recession-resistant industry, KTEL could continue to generate strong growth, even during an economic downturn.

With its operating costs largely fixed, KonaTel’s revenue growth could cause its bottom line to jump significantly. This, in turn, would likely send KTEL stock, after its epic move higher during 2020 and 2021, on another incredible run. As a result, now may be the perfect time to initiate a bullish position in the name.

POSaBIT (POSAF)

If a 200% potential gain isn’t enough to get you excited, how about the prospect of a 1,000% surge? That may be the opportunity presented by cannabis payments firm POSaBIT (OTCMKTS:POSAF).

That’s the view of InvestorPlace columnist Thomas Yeung, who remains confident that this 53-cent stock could reach $5 by 2024. According to Yeung, the negative sentiment towards cannabis-related stocks, plus the market’s current “risk-off” stance, have caused investors to ignore POSaBIT’s positive attributes like its 66% year-over-year revenue growth and upbeat guidance.

Yet as POSaBIT continues to grow, more investors could finally start buying its shares. As more states legalize marijuana, this company will likely continue growing at a rapid clip. And until Congress legalizes marijuana, mainstream payments companies can’t enter this market, giving POSaBIT a significant  competitive advantage.

Rush Street Interactive (RSI)

When you think of online gambling stocks, market leaders like DraftKings (NASDAQ:DKNG) may come to mind. However, Rush Street Interactive’s (NYSE:RSI) BetRivers platform holds a decent share of the online sports gambling market and an impressive 9.1% of the online casino games market.

BetRivers’ market share could be the key to a recovery by hard-hit RSI stock. Now that the platform has built up a significant customer base, the company is in a position to reduce its  spending on marketing, helping to narrow its operating losses. That, in turn, could enable the stock to start recovering.

Also, there may be a consolidation wave among online gambling companies. So a rival of BetRivers, in order to reduce its operating costs, may be willing to pay a big premium to acquire Rush Street, creating impressive profits for the owners of RSI stock.

NuScale Power (SMR)

NuScale Power (NYSE:SMR), in which Fluor (NYSE:FLR) has a majority stake,  went public earlier this year. After treading water following their debut, the shares of this nuclear power plant company briefly spiked last summer. The rally was spiked by game-changing news from the Nuclear Regulatory Commission (or NRC).

NuScale doesn’t build traditional nuclear plants. Rather, it specializes in small, modular reactors. That’s why its stock symbol is “SMR.” In late July, the NRC certified NuScale’s SMR design for new power plants in the United States.

Although SMR stock has given back the gains from this news, you may still want to buy the shares. As Josh Enomoto, another InvestorPlace columnist, asserted earlier this month, SMRs are a smarter, safer way to generate nuclear power.

With America’s pivot away from fossil fuels and the rebounding popularity of nuclear as an alternative power source, energy trends are extremely favorable for NuScale.

SurgePays (SURG)

SurgePays (NASDAQ:SURG) has received a lot of attention lately as a short-squeeze stock. According to Fintel.io, 51.7% of its outstanding float has been sold short. However, this stock’s appeal goes beyond just this possible short-term catalyst.

The fundamentals of SURG stock also indicate that it could be a great name for longer-term investors. For now, this company mainly processes  prepaid wireless and gift card activations for small retailers like convenience stores. Of greater interest is SurgePays’ new, emerging segment:  government-subsidized  broadband internet.

As a Seeking Alpha commentator recently discussed, so far in 2022 the company has grown its subscriber base from 30,000 to 220,000. The columnist estimates that, as a result of this growth,  SurgePays’ earnings per share (or EPS) will climb to $1.40 annually. Generating $1.40 of annual EPS would most likely enable SURG to “surge” at least three-fold from today’s prices.

Zynex (ZYXI)

Zynex (NADSAQ:ZYXI) is another of the under-the-radar growth stocks whose high short interest should put it on your radar.

Currently, around 17% of the outstanding float of ZYXI stock is sold short. Between 2019 and 2021, this provider of medical devices that treats chronic and acute pain grew rapidly. But since last year, the short sellers have been skeptical about the chances of the company’s boom times continuing.

However,  Zynex’s recent guidance indicates that the  company’s growth may not decelerate significantly. That’s because, after reporting record order growth last quarter, the company reiterated its 2022 revenue guidance of $150 million-$170 million.

In other words, the company expects its sales to jump 15.1%-30.5% versus 2021. If ZYXI can prove the skeptics wrong, the stock could surge to its past all-time high of $28.28, That’s more than triple its present price.

On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.