NEW YORK (TheStreet) -- The IPO market in the U.S. remains robust and offers some good long-term investment opportunities. Here are two recent IPOs with a strong growth outlook and a potentially big stock upside.
Dorian LPG (LPG) is a pure-play liquefied petroleum gas shipping company. The stock made its debut on May 8.
The company has three modern very large gas carriers (VLGCs) and one pressurized LPG vessel.
Since its debut, the stock has surged by 22%, and the Street believes there is potential for more upside.
Dorian LPG has a big pipeline of 19 ECO VLGC new vessels, due for delivery by January 2016. With that significant number of new vessels coming into operation, Dorian LPG is set for scorching growth over the next two years. High growth in revenue and EPS will translate into a strong stock upside.
The big differentiating factors for Dorian LPG as compared with its peers are the fuel-efficient ECO vessels. They will yield cost savings of $4,000 per day per vessel, compared with non-ECO carriers. The company will therefore command better margins than its peers.
The shale boom will make the U.S. the largest exporter of LPG by 2015. The biggest importers will be countries in the Asia-Pacific region. Long-distance trade will therefore boost the demand for LPG carriers.
With its modern fleet, Dorian LPG is well-positioned amid strong industry dynamics to outperform.
Nordic American Offshore (NAO) has a limited operating history but a strong growth plan. The company owns and operates platform supply vessels (PSVs) and was listed on June 11.
The stock has surged by nearly 10% from its listing price of $15.25, and the Street believes there is potential for more upside.