XPEL
With its $730 million market capitalization, XPEL is relatively unknown. However, despite its small size, this protective film and coating manufacturer is executing like a class-act large cap. Shares have surged more than 260% over the past two years as the company's revenue has jumped sharply and its net income has soared.
XPEL's 2019 revenue jumped 18.2% to $129.9 million. Earnings during this same period soared from about $9 million to $14 million, highlighting the company's
scalable business model. Even during periods negatively impacted by the coronavirus, XPEL's revenue continued to grow nicely; first- and second-quarter revenue rose 14.8% and 19%, respectively.
With XPEL trading at 62 times earnings, investors will have to pay a steep price to get into this growth story. But investors should keep in mind that the company's bottom line is still soaring. In Q2, net income was up 32% year over year. Management is "cautiously optimistic" that its "second-quarter momentum will continue as we move through the rest of the year."