These 2 Monster Growth Stocks Could Hit New Highs, Says JPMorgan

Growth stocks have a way of pulling investors in – and it’s easy to see why. When a stock rallies 75% or more in just a few months, it rarely happens by accident. Moves like that tend to reflect real momentum in the underlying story, and investors naturally start paying attention.

Of course, momentum alone isn’t a thesis. The well-worn reminder that past performance doesn’t guarantee future returns still applies. Even so, strong gains can provide useful context, helping to spotlight companies that are executing, gaining share, and earning market confidence.

With that in mind, we dug into the TipRanks database to identify two ‘monster growth’ stocks that have surged in recent months and continue to draw support from banking giant JPMorgan, which sees them pushing toward new highs. Let’s take a closer look.

Matson, Inc. (MATX)

We’ll start in the world of shipping. Honolulu-based Matson is an oceanic transportation and logistics company – in short, a shipping company. Matson has been in business since 1882 and operates in the Pacific Ocean, where it provides reliable and vital surface transport links between the West Coast and Hawaii, Alaska, and Guam, as well as reaching out to the Micronesian islands, Japan, and China.

Matson is a US-owned and operated company, and maintains US crews on its ships, putting the company in clear compliance with the Jones Act, which requires that all shipping between US ports be on US-owned, crewed, and operated vessels. Matson meets this requirement with a varied fleet that includes the industry’s ubiquitous containerships, along with combination container vessels and roll-on/roll-off ships and barges.

The company has well over a century of accumulated expertise in shipping and cargo fleet operations. Matson has developed a network of dedicated terminal facilities, allowing for fast, efficient loading and unloading of its ships, and backs its operations with top-tier customer service. The company has been integrating AI tech into its operations to improve logistical efficiencies, automate administrative functions, and even to detect the presence of whales on its sea routes.

In the past six months, Matson has seen its share price rise by 78%. The company’s stock has found support from several factors, including strong earnings, but an unexpected support has come from the current Iran war. That conflict has disrupted shipping patterns in the Middle East, particularly around the Arabian Sea and the Strait of Hormuz – but Matson, which operates outside of that region, is well-positioned to realize gains as potential customers look for ‘insulated’ shipping companies. In addition, Matson’s Jones Act compliance gives it a protected realm of operations between US ports.

We’ll see Matson’s 1Q26 results early next month, but for now, a look at the 4Q25 report shows us that Matson beat the forecasts at both the top and bottom lines. The company’s 4Q revenue came in at $851.9 million, $4.6 million ahead of expectations, even though it was down 4.3% year-over-year. The company realized $4.60 in EPS, up 80 cents per share from 4Q24 and 91 cents per share better than had been anticipated.

For JPM analyst Tomohiko Sano, the key points here revolve around Matson’s strong operations. Sano writes, “Matson’s fastest Transpacific ocean routes allow it to operate in a niche market, sitting above commoditized marine freight carriers and as a cost-effective expedited air freight alternative. Its ongoing vessel refresh will add more efficient capacity, helping to drive superior service operationally and improved returns financially, and is fully funded, thereby not requiring additional financing capacity. Its disciplined pricing practices, aggressive share repurchases and strong balance sheet reinforce its growth trajectory and could result in further positive earnings surprises.”

Sano sums up this stance by saying, “Our site visit reinforced our confidence in CEO Matthew Cox’s leadership driving the company’s discipline and terminal management, with the Full Control Model and ‘Ohana’ culture being key to operational excellence.”

These comments back up the analyst’s Overweight (i.e., Buy) rating, while the $230 price target implies a one-year gain of 31%. (To watch Sano’s track record, click here)

While there are only 2 recent reviews for this stock, both are positive, resulting in a Moderate Buy consensus rating. The shares are trading for $175.51, and their $221.50 average price target suggests an upside of 26% in the next 12 months. (See MATX stock forecast)

Powell Industries (POWL)

Texas-based Powell Industries, the next stock we’ll look at here, has a more direct link to the AI industry than Matson – it is an important designer, manufacturer, and packager of distribution and control equipment for electrical energy systems. The company was founded in 1947, and today has a global operation in the vital electrical infrastructure sector.

Powell’s product lines are focused on a wide range of electrical switchgears, power control rooms, E-houses, custom engineered modules for offshore applications, traction power substations, mobile substations, and substation control centers. All of these are backed by a global service guarantee, ensuring that customers can rely on their electrical infrastructure – and that it will be repaired if anything goes wrong. Powell specializes in safety-conscious construction, and its industrial-grade switchboards offer such features as arc-resistant construction, narrow design to fit unconventional locations, and a full set of safety and maintenance accessories.

The rapid expansion of AI and data centers has brought along an equally massive expansion of power generation facilities to keep up with demand. Powell’s products literally stand between the two – switchboards and other electrical infrastructure transmit power from the generators (whether grid or on-site) to the electrical devices that consume the power. The intense demand for such products can be seen in Powell’s backlog numbers. As of December 31, 2025, the company’s work backlog stood at $1.6 billion, representing an increase of 14% in just three months.

That gets us to the increase in the company’s share price. Year-to-date, POWL shares are up by a huge 140%, with the work backlog and the company being a beneficiary of the rising demand for high-power data center infrastructure, acting as key catalysts.

We’ll check in again with JPM’s Sano, who says of this electrical infrastructure provider: “Powell’s $1.6B backlog provides strong revenue visibility through FY26 and into FY27, with about 60% expected to convert in the near term. The company is benefiting from secular tailwinds including AI, automation, electrification, and infrastructure spending, which are set to drive multi-year demand. Powell’s ability to execute on this backlog, especially as projects reach manufacturing stage, could deliver positive earnings surprises and reinforce its growth trajectory.”

Looking ahead, Sano paints an upbeat picture: “Our Houston site visit confirmed Powell’s manufacturing excellence and disciplined operations. Operational excellence is clear, and despite shares increasing roughly +140% year-to-date and +310% over the past year, we continue to see upside to the current valuation, resulting in a positive risk/reward profile.”

That ‘positive risk/reward profile’ points to an Overweight (i.e., Buy) rating for POWL, while Sano’s $310 price target suggests a gain of 21% on the one-year horizon.

POWL shares have 5 recent reviews, with a 3 to 2 split that favors Buy over Hold and supports a Moderate Buy consensus rating. However, the $206.39 average target indicates a potential one-year downside of 19%. With this in mind, watch out for either price target hikes or rating downgrades shortly. (See POWL stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.