It’s all too easy to chase the latest biotech unicorn or speculate on companies burning through cash like there’s no tomorrow. Yet, that often leads to dashed hopes and dwindling bank accounts.

Instead, the journey from $50,000 to a jaw-dropping $1 million is likely paved with top-notch, financially robust businesses. Placing bets on companies with promising futures, expanding revenues, and a clear roadmap to profitability opens the door to firms that possess the mettle to sustain growth and watch their valuations soar over time.

Companies that consistently execute quarter after quarter are almost bound to witness their stock prices climb eventually. Interestingly, several excellent stocks are still in the process of bouncing back from the post-Covid slump. While they’ve remained stagnant amidst the broader market’s surge, these companies, once their financials start rebounding, could yield substantial returns.

Data Storage Corp. (DTST)

Source: everything possible/Shutterstock

Data Storage Corp. (NASDAQ:DTST) has more than doubled since my initial coverage, poised to yield substantial returns. Admittedly, I’m slightly on edge about this selection. The company is on the cusp of unveiling its Q4 results, a mere day following this piece. Recently, DTST stock saw a 15% decline after reporting breakeven results for Q4, which fell short of expectations. Nonetheless, I remain optimistic about this company’s potential to generate significant long-term profits.

Lately, data storage firms have been experiencing robust growth, with many key players in this sector witnessing substantial revenue boosts driven by cloud computing and data services. This emerging entity stands to grab attention in the upcoming years as it secures contracts with industry giants.

Though I’ve delved into this stock frequently, as a quick reminder, Data Storage recorded 2 cents in earnings per share and $6 million in revenue, marking a 35% year-on-year increase in Q3 2023. This growth surpasses that of other high-growth companies trading at 10 times forward sales or higher currently. Not only does this small-cap company exhibit superior growth, but its potential market in data storage vastly exceeds its modest size.

Personally, the opportunities here seem immense. The demand for secure, dependable data storage is bound to escalate as businesses generate unprecedented volumes of data. With Data Storage’s agility due to its size and specialized expertise, the company is in an ideal position to capitalize on this burgeoning demand. Granted, investing in small-cap firms carries risks, but the potential returns here are compelling.

Ammo Inc. (POWW)

Source: Shutterstock

This is another firm I’ve extensively covered, and it seems poised to break out of its stagnant trading pattern. Various factors are aligning favorably for Ammo Inc. (NASDAQ:POWW). The most apparent catalyst to highlight is the rising demand for ammunition, spurred by the conflict in Eastern Europe depleting many nations’ ammunition caches, creating a substantial restocking backlog. Hence, I foresee robust long-term performance for POWW stock as this backlog swells.

While the company’s revenue has recently dipped and Ammo Inc. reported a slight 1-cent earnings per share miss, this firm still holds significant growth potential. I’m bullish on the GunBroker platform, which continues to observe sales expansion. This platform boasts a significant barrier to entry, as most firms steer clear of civilian arms sales.

Ammo Inc. anticipates a return to profitability next year, with analysts projecting a 10% revenue surge, reaching $158 million. In my assessment, this marks just the commencement of the upward growth trajectory. Given the ongoing global ammunition shortages and enduring strong consumer demand in the U.S., Ammo Inc. could be positioned for a prolonged period of above-average growth.

HIVE Digital (HIVE)