Investors often buy growth -oriented actions in the hope of finding the next great thing. Admittedly, this objective is elusive, and even in the rare scenario of a stock intended for gains of 100 times or more, such a process generally takes decades.
Nevertheless, some of the biggest actions today, such as Amazon And Netflixwere Small capitalization stocks at some point. Consequently, looking towards smaller actions can position investors for considerable growth potential, and these actions could become major influences in their growing industries over time. Let us examine two specific actions to consider.
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1. Uipath
Uipath (PATH -3.32%)) Specialized in the automation of the robotic procession (RPA). These are software robots that automate many repetitive and manual tasks. Its ecosystem allows users to configure such automation without in -depth coding knowledge. It can also adapt to computer systems, applications, databases and cloud -based services.
The growing popularity of this stock led the company to launch a IPO At the end of 2021, where he initially began to negotiate $ 56 per share and attracted a premium assessment.
Unfortunately, for Uipath’s investors, it was near the market summit. After reaching $ 85 per share shortly after its IPO, the action suffered a constant drop. In the fall of 2022, it sold just above $ 10 per share. Since then, the stock has won little traction and with a market capitalization of just over $ 7 billion, it remains mired cropped territory.
However, it seems more and more likely that growth has stopped slowing down. Indeed, revenues in the first quarter of the fiscal 2026 (finished on April 30) were $ 356 million, which represents an increase of 6%. Always, Annual recurring income (Arr) increased by 12%, indicating that long-term customers spend more on the platform.
In addition, revenues increased by 9% during the year 2025 and seems to be on the right track for the same growth rate during the year 2026, which suggests that growth is ready to accelerate. The losses also continue to stop while the loss of 23 million dollars of the Budget T1 improved compared to the loss of $ 29 million in the quarter of the previous year.
In addition, Uipath did not P / E ratioBut analysts expect losses to end in the near future. With this, analysts estimate a P / E ratio out of 24. This level of evaluation is very favorable to investors, because the growth of the percentage of profits of a newly profitable company could increase the stock.
2. Innovata
Innova (Inod -7.54%)) is a data engineering company. He began in 1988 as a digital content company, and his actions have been negotiated since 1992. Over time, he has developed a large media clientele, publishing companies and organizations in almost all industries that rests strongly on information.
However, a passage in artificial intelligence (AI) has changed the company and, by extension, the proposal for the value of its actions. Its low-coded software platforms have taken off in popularity because they facilitate data collection, digital transformation and rationalized commercial processes aimed at specific industries.
Over the past five years, the stock has increased by around 3,500%, which could imply that investors do not buy “ground floor”. Fortunately, this does not necessarily mean that it is too late to join this stock. To a market capitalization of $ 1.6 billion, there remains a stock with small capitalization.
Indeed, the relatively small size of Innovata is a factor in the growth of the business. In the first quarter of 2025, its revenues of $ 58 million increased by 120% from one year to the next. During the same period, costs and expenses increased by 99%. With this, the operating profit jumped, allowing the company to declare a net income of almost $ 7.8 million, well above the profit of $ 989,000 in the quarter of the previous year.
In addition, Innovata guided the growth of income of “40% or more” in 2025. Analysts predict a growth of 73% in T2 and 41% for the year. However, income growth rates have been three figures for three consecutive quarters, which means that it can probably beat these estimates even in the middle of a slowdown.
Finally, Innovata sells for a P / E ratio of 49. However, given its small size and rapid income, the action should continue to increase even in the middle of this higher evaluation.
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. VA Healy Has no position in the actions mentioned. The Motley Fool has positions and recommends Amazon, Netflix and Uipath. The Word’s madman has a Disclosure policy.