Two Promising Growth Stocks Offering Potential Long-Term Gains
January 16, 2026
Business News

Two Promising Growth Stocks Offering Potential Long-Term Gains

Opendoor and Nextpower represent compelling investment opportunities amid evolving market conditions and sector dynamics

Summary

After a period of volatility influenced by rising interest rates and market shifts, growth-oriented stocks like Opendoor and Nextpower present appealing options for investors with a long-term perspective. Despite recent revenue declines and challenging sector environments, both companies are implementing strategic initiatives that could drive significant expansion and shareholder value in the coming years.

Key Points

Opendoor is the leading iBuyer in the U.S. housing market but has seen revenue decline significantly since 2022 due to high mortgage rates.
Opendoor is implementing AI enhancements and expanding its marketplace offerings to drive future growth, with new leadership aimed at turnaround success.
Nextpower, formerly Nextracker, is transitioning from a solar tracker producer to a diversified energy technology company with strong recent revenue and EBITDA growth projections.

The period of heightened enthusiasm around growth-oriented stocks, particularly during the meme-stock episode spanning 2020 and 2021, proved a double-edged sword for many market participants. This phase was marked by unprecedented factors including government stimulus measures, the amplified reach of social media platforms, the proliferation of commission-free trading services, and a widespread fear of missing out among investors. While some stocks surged dramatically, many could not sustain their momentum and experienced setbacks throughout 2022 and 2023 as monetary tightening nudged investors toward safer assets.

In contrast, the Federal Reserve's policy adjustments in 2024 and 2025, characterized by six consecutive interest rate reductions responding to easing inflationary pressures, have fostered a renewed landscape for growth investments. This macroeconomic backdrop sets the stage for discerning investors to consider stakes in companies positioned to capitalize on enduring secular trends, especially those capable of overcoming near-term headwinds.

Among the growth stocks that merit attention for potential long-term gains are Opendoor (opening ticker: OPEN) and Nextpower (ticker: NXT). Both enterprises operate in sectors undergoing significant transformation and present unique value propositions for investors with patience and conviction.


Opendoor: Reshaping the Home Selling Experience

Opendoor stands as a leading instant buyer of residential properties within the United States. Its business revolves around providing homeowners with immediate cash offers, undertaking home refurbishments, and subsequently marketing these properties through its proprietary online platform. Despite rapid expansion during the housing market surge following the pandemic, the company has confronted notable challenges as elevated interest rates in 2022 and 2023 curtailed transaction volumes and dampened housing market activity.

Though the Federal Reserve's consecutive rate cuts in 2024 and 2025 signify a more accommodating environment, Opendoor's financial performance has yet to fully recover. Revenue experienced a pronounced decline, plummeting from $15.6 billion in 2022 to $5.2 billion in 2024. Correspondingly, the volume of homes acquired diminished sharply from nearly 35,000 units to under 15,000. This contraction also impacted profitability metrics, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) moving into negative territory.

Analysts project a further revenue reduction of approximately 18% to $4.2 billion in 2025 alongside continued negative adjusted EBITDA, underscoring the near-term operational pressures the firm faces. Nevertheless, Opendoor has embarked on strategic initiatives aimed at rejuvenating its growth trajectory. These include advancing the sophistication of its artificial intelligence algorithms to enhance property pricing accuracy, broadening listing partnerships to extend market penetration, and expanding its "Opendoor Exclusives" program. The latter facilitates direct connections between home sellers and potential buyers, reducing reliance on costly repairs and thereby improving transaction efficiency.

The company also signaled a significant leadership shift with the appointment of Kaz Nejatian, formerly the chief operating officer at Shopify, as CEO in September. This leadership change underscores Opendoor's commitment to transformation and strategic recalibration. According to consensus forecasts, should the housing market stabilize and the company’s initiatives bear fruit, revenue could grow at an annualized rate of 29% between 2025 and 2027, with profitability anticipated to return by the end of this period.

Currently, with an enterprise value near $6.5 billion, Opendoor trades at a modest multiple of approximately 1.4 times its projected 2025 sales. This valuation suggests meaningful upside potential contingent on the successful execution of its turnaround actions and favorable market conditions.


Nextpower: Energizing Growth through Innovation in Renewable Technologies

Nextpower operates within the renewable energy sector and has gained recognition as a leading supplier of solar tracking systems — advanced technology that optimizes solar panel orientation in real-time to maximize energy generation. This innovation allows solar installations to produce 15% to 25% more electricity compared to conventional fixed-tilt configurations, making it a vital component in expanding solar power efficiency.

Traditionally recognized as Nextracker, the company strategically expanded its capabilities by acquiring three firms in recent times, enabling the establishment of a dedicated artificial intelligence and robotics division. This evolution prompted the rebranding to Nextpower, reflecting a broader transformation from a cyclical solar equipment supplier to a diversified energy technology enterprise.

Nextpower’s product offerings now include utility-scale power conversion systems (PCS) for integrating solar power into electricity grids, electrical balance-of-systems (eBOS) solutions, and AI-driven digital platform tools. The company's vision includes bundling these technologies into an integrated "one-stop shop" providing structural, electrical, and digital solutions for solar energy projects. This comprehensive approach is strategically aligned with escalated decarbonization mandates, increased governmental incentives, and declining costs of solar modules, collectively presenting robust growth catalysts.

Financially, Nextpower exhibited impressive momentum from fiscal 2022 through 2025, nearly doubling revenue from $1.5 billion to $3.0 billion on a compound annual growth rate (CAGR) of 27%. Adjusted EBITDA surged dramatically from $92 million to $777 million, representing an extraordinary CAGR of 103% over the same interval. Looking ahead, analysts expect revenue growth to moderate but remain strong at a CAGR of 14% through 2028, reaching approximately $4.35 billion, with adjusted EBITDA continuing to rise at 10% annually to surpass $1 billion.

Despite these promising fundamentals, Nextpower’s valuation remains conservative with an enterprise value of roughly $13.6 billion and a multiple of about 17 times anticipated adjusted EBITDA for this year. This valuation likely reflects market anticipation as it absorbs the company’s ongoing transition toward becoming a high-growth energy technology provider. Should Nextpower successfully leverage its innovation and market positioning, the stock could experience significant appreciation in the years ahead.


Considerations for Investors

While both Opendoor and Nextpower embody compelling investment cases derived from structural industry shifts and company-specific strategies, prospective investors must be mindful of inherent risks. Opendoor contends with ongoing pressure from elevated mortgage rates and the unpredictability of the housing market. Its significant revenue decline and current lack of positive profitability also introduce uncertainty regarding the timing and success of its turnaround efforts.

Nextpower faces the challenge of executing its strategic transformation amidst technological integration efforts and market competition. Although financial indicators display strong growth, shifts in policy support, solar industry dynamics, or delays in realizing synergies from acquisitions could affect outcomes.

For investors willing to navigate near-term volatility and position themselves for potential significant gains, these stocks warrant careful analysis and monitoring as they undertake pivotal transitions in their respective markets.

Risks
  • Opendoor’s continued revenue decline and negative EBITDA reflect ongoing challenges in the housing market and could delay a turnaround.
  • Nextpower’s success depends on the effective integration of new acquisitions and execution of its diversified technology strategy amid competitive and policy uncertainties.
Disclosure
This article does not contain investment advice and investors should perform their own due diligence before making investment decisions.
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OPEN - neutral NXT - neutral
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