2. Enovix Corporation (NASDAQ:ENVX)
Analyst Upside Potential: 135.85%
Enovix Corporation (NASDAQ:ENVX) is a company that specializes in creating advanced batteries, specifically lithium-ion batteries that use silicon instead of traditional graphite. The company exercises its strategic edge over its customers by manufacturing batteries that can store significantly more energy compared to standard lithium-ion batteries. Moreover, their batteries are designed in a way that not only enhances energy capacity but also maintains safety standards, which is crucial for consumer electronics and electric vehicles.
The batteries developed by Enovix Corporation (NASDAQ:ENVX) have both consumer and industrial applications as it designs batteries for daily use devices including smartphones and laptops and for industrial usage including electric vehicles.
Enovix Corporation (NASDAQ:ENVX) has made significant strides in its business during the third quarter of fiscal 2024, focusing on scaling its operations and enhancing its market presence. It inaugurated its new manufacturing facility, Fab2, in Malaysia. This facility is designed to ramp up production capabilities, and it has already started shipping battery cells to customers. Moreover, the company also secured a development agreement with a leading smartphone manufacturer to qualify their battery products for mass production, expected to begin in late 2025.
During the quarter it generated $4.3 million in revenue marking a 2,058.50% increase year-over-year. Looking ahead management is expecting Q4 revenue to be $8.0 million and $10.0 million. It is one of the best small-cap stocks ready to explode as analysts’ 12-month median price target is pointing towards a 135.85% upside from current levels.
Massif Capital Real Assets Strategy stated the following regarding Enovix Corporation (NASDAQ:ENVX) in its Q2 2024 investor letter:
“Enovix Corporation (NASDAQ:ENVX): Enovix is perhaps a bit of an outlier in our portfolio given that it is a battery manufacturer selling into consumer goods markets, but it fits nicely in what we believe to be the Massif Capital analytical sweet spot, businesses where science/technology, geopolitics/geoeconomics and energy/materials overlap. While some would argue that Enovix is inappropriate for a liquid real asset portfolio, the traditional definition of real asset businesses is dated.
Traditionally, real asset businesses are those that own and operate real estate, infrastructure, and natural resource assets. While this definition is workable, and most of the companies we invest in fall into one of these categories, it does not consider the ever-growing role of applied physical sciences in specific manufacturing fields, nor does it take into account the growing importance of material sciences and the changing nature of energy in general. Enovix is a material sciences business aiming to transform an ever-growing list of unique, highly refined materials into energy storage devices. They create value by understanding materials’ physical and electrochemical properties better than others…” (Click here to read the full text)
