The Nasdaq is an American stock exchange, founded in 1971, that lists some of the largest companies in the world.  It has a market cap of over $19.4 trillion and has over 3,300 company listings.

In 2021, the Nasdaq index gained 21.39%, outperforming the Dow Jones Industrial Average’s (DJIA) 18.73% returns over this period.

Out of the more than 3,600 stocks listed on the Nasdaq exchange, these three performed the best: Lightwave Logic, Inc. (LWLG - Get Rating), Aehr Test Systems (AEHR - Get Rating), and Destination XL Group, Inc. (DXLG - Get Rating). Each one of these stocks experienced gains of more than 800%. Let’s take a look at each of these names.

Lightwave Logic, Inc. (LWLG - Get Rating)

LWLG focuses on developing photonic devices and non-linear optical polymer materials systems for fiber-optic data communications and optical computing markets. The company also designs and synthesizes organic chromophores in its electro-optic polymer systems and photonic device designs. It serves telecommunications component and systems manufacturers, networking and switching suppliers, semiconductor companies, Web 2.0 media, computing companies, aerospace companies, and government agencies.

On September 16, 2021, LWLG announced the achievement of world-record performance for a polymer modulator, using its proprietary, advanced Perkinamine chromophores and Swiss-based Polariton Technologies Ltd.’s newest plasmonic EO modulator, a silicon-photonics-based plasmonic racetrack modulator, offering energy-efficient, low-loss, and high-speed modulation in a compact footprint. This breakthrough will likely make the companies witness widespread recognition across the industry.

The company had $12.19 million in cash and cash equivalents as of September 30, 2021. Over the past year, the stock has gained 1649.5%. 

Aehr Test Systems (AEHR - Get Rating)

AEHR designs, engineers, manufactures, and sells test and burn-in equipment for use in the semiconductor industry. The company provides full wafer contact test systems, test during burn-in systems, test fixtures, and related accessories. It serves semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers, and burn-in and test service companies through a network of distributors and sales representatives.

On December 21, 2021, AEHR received an order from a current silicon photonics customer for four additional FOX-NP systems to support the characterization and product qualification of new photonics-based devices. Configured with two blades, these new FOX-NP systems allow two wafers to be tested in parallel using AEHR’s proprietary WaferPak Contactors. As the silicon photonics market is expected to grow at a 49% cumulative average growth rate (CAGR) from 2021 through 2026, AEHR expects to benefit in the long run.

AEHR’s net sales for its fiscal 2022 first quarter, ended August 31, 2021, increased 180.6% year-over-year to $5.65 million. The company’s gross profit came in at $2.28 million, indicating a 904.9% rise from the prior-year period. Its pre-tax income came in at $719 million, compared to a loss of $108 million in the prior-year period. The company had $6.53 million in cash and cash equivalents as of August 31, 2021.

The consensus EPS estimate of $0.42 for fiscal 2022 ending May 31, 2022, represents a 400% rise from the prior-year period. For the same fiscal year, analysts expect AEHR’s revenue to improve 204% from the prior-year period to $50.46 million. The company’s EPS is expected to grow at a 20% rate per annum over the next five years. Over the past month, the stock has grown 824.5%. 

Destination XL Group, Inc. (DXLG - Get Rating)

DXLG operates as a specialty retailer of big and tall men’s clothing and shoes in the U.S. and Canada. Its stores offer sportswear, dress wear, accessories, fashion-neutral items, and casual clothing. In addition, it is involved in the development and wholesale distribution of products to retailers. As of January 30, 2021, it operated 226 DXL retail stores, 17 DXL outlet stores, 46 Casual Male XL retail stores, and 22 Casual Male XL outlet stores, as well as an e-commerce site at dxl.com.

DXLG’s sales fiscal 2021 third quarter ended October 30, 2021, increased 42.6% year-over-year to $121.49 million. The company’s gross profit came in at $60.96 million, up 96.2% from the prior-year period. Its operating income came in at $15.94 million for the quarter, compared to an operating loss of $5.92 million in the prior-year period. DXLG’s net income came in at $13.66 million, versus a $7.02 million, versus a $7.02 million in the year-ago period. Its EPS came in at $0.20, compared to a $0.14 loss per share in the prior-year period. The company had $6.94 million in cash and equivalents as of October 30, 2021.

Analysts expect the stock’s revenue to be $508.05 million for the current fiscal year ending January 31, 2022, indicating a 59.3% year-over-year improvement. Analysts expect the company’s EPS to grow at a 15% rate per annum over the next five years. Over the past year, the stock has gained 2160.4%.

LWLG shares were unchanged in after-hours trading Tuesday. Year-to-date, LWLG has gained 5.98%, versus a 0.55% rise in the benchmark S&P 500 index during the same period.

About the Author: Sweta Vijayan

Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She’s passionate about educating investors, so that they may find success in the stock market. More...

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