3 Stocks With NVIDIA-like Return Potential

With NVIDIA stock up nearly 400% since the beginning of 2015, it's easy to look back and regret not buying shares of the graphics-chip specialist. To be fair, NVIDIA's stellar growth has shocked even the most bullish analysts.

The question now is, are there other companies with the same potential? Three of the best partners in the "Motley Fool" choose one share, which believe has the potential of Nvidia.

Steve Symington (CalAmp): As I look for companies with the potential to deliver massive returns like those NVIDIA has achieved -- and keeping in mind that I still like NVIDIA today -- I tend to lean toward smaller businesses that are positioned to play a central role enabling the long-term growth of early-stage industries. To that end, I think machine-to-machine communications specialist CalAmp fits the bill nicely, with its market cap still below $600 million as of this writing.

For example, CalAmp is poised to benefit from the increasing prevalence of usage-based auto-insurance policies -- which some industry watchers believe could grow to represent between 20% and 30% of the entire auto-insurance market over the next several years.

CalAmp stock has rebounded nicely from its 52-week-lows set in early November, but it's still down 10% over the past year as weak macroeconomic conditions had held back demand for CalAmp's fleet telematics products in the United States. But during the most recent quarterly conference call last month, CalAmp management noted that market conditions and visibility have improved significantly.

Rich Smith (Kratos Defense & Security): Finding a stock with the potential to rise 500% in three years, as NVIDIA has done, is no easy task -- but I think I've got one that could come close.

Its name is Kratos Defense & Security, and while it's a bit of a wild card and offers no assurance of success whatsoever, Kratos is the kind of stock that could surprise investors with the sort of windfall profits that have graced NVIDIA shareholders. Here's why.

NVIDIA zoomed because its entry into unexpected markets surprised and thrilled investors. Historically viewed as a graphics-chip company focusing on gaming consoles and PCs, NVIDIA has expanded to become a powerful force in virtual reality, artificial intelligence, and driverless cars. As investors clued into the new opportunities at NVIDIA, its stock value rose accordingly.

Something similar could happen with Kratos. Historically best known for its work in satellite communications and target drones, Kratos embarked a few years ago on a new project to first create, and then dominate, an entirely new market in jet-powered combat drones.

Keith Speights (Teladoc):

A recent study found that 78% of Americans would be interested in receiving healthcare services virtually, but only 21% had actually done so. That latter statistic should increase significantly in the coming years. Teladoc will likely help make it happen.

Teladoc provides on-demand healthcare services remotely to patients via mobile devices. The company currently commands a 75% market share in the telehealth industry -- three times greater than its nearest competitor.

The company has won major support from payers, hospitals, and customers.which are more than 7,500.

Source The motley Fool

Read more:

• DAX continues consolidate
• Sodexo – Breakthrough the short trend channel and forming a new upward trend
• Norma Group (NOJ): Breakthrough a key resistance zone
• Capita PLC: Inverted head activated, for increace
• Canopy Growth Corporation (CGC) Breakthrough the bearish channel, possible long