Editor's note: As part of our partnership with PBS's Nightly Business Report, TheStreet's Bryan Ashenberg joined NBR to highlight mid-cap stocks with breakout potential. (Watch video and read transcript here.)
With earnings season nearing an end, we are taking this opportunity to highlight three of our favorite Breakout Stocks model portfolio holdings. We will examine how they are positioned to grow within their respective industry, based on secular growth drivers and company-specific levers and initiatives that should allow the stocks to become solid investments.First up is OmniVision Technologies ( OVTI), which is a leading designer and marketer of high-performance, semiconductor image sensors for mass-market consumer and commercial applications. The company is benefiting from the huge trend of incorporating image sensors (and, increasingly, two image sensors) in wireless mobile devices. In its recently reported third quarter, OmniVision generated 72% of its sales from handsets, and we expect the company to continue seeing robust growth based on to the explosion in demand for smartphones. The combination of social media with mobile devices is creating increased demand for higher-quality image sensors, which, ultimately, should bring greater profits to OmniVision's bottom line. This stock is an excellent way to capitalize on the proliferation of image-capable, digital devices.