With the labor market expanding and inflation receding, it’s time to identify breakout growth stocks with significant potential.

As the U.S. economy continues to defy the odds with its resiliency, it’s arguably an ideal time for investors to seek the best breakout stocks for an explosive rally ahead.

The recent jobs report indicates the economy is far from collapsing, and the stock market is growing in confidence as the banking sector stabilizes. The Federal Reserve adopts a more dovish stance.

In this environment, the goal of the article is to focus on unearthing breakout stock picks that are poised for impressive growth.

These most promising breakout stocks to buy are trading significantly below their 52-week highs, offering incredible potential to enjoy substantial returns.

ChargePoint (CHPT)

ChargePoint (NYSE:CHPT) is a trailblazer in the EV charging realm, boasting an impressive global across 14 countries.

It boasts the largest EV charging network in the U.S., and should capitalize on the EV adoption wave globally.

CHPT operated a consistently growing business, with double-digit top-line expansion over the past few years. Forward revenue estimates point to over 60%.

Admittedly, CHPT stock dropped more than 30% in the past year, which has plenty to do with it not being profitable since going public in the fall of 2020.

Amidst the risk-off sentiment, investors have backed profitable businesses, and CHPT doesn’t fit the bill. However, based on its stellar performances over the years, it is likely to break even within the next three years.

CHPT is likely to emerge as a key player in developing ubiquitous charging stations, which positions it as one of the top break-out stocks at this point.

PENN Entertainment (PENN)

PENN Entertainment (NASDAQ:PENN) is a distinguished gaming powerhouse, boasting a varied portfolio of casinos, racetracks, and online gaming assets in the U.S.

The recent acquisition of Barstool Sports has further solidified its position in the thriving betting industry. Additionally, it paves the way for full brand ownership and synergistic growth.

PENN owns a staggering 43 properties across 20 states and sports betting and iCasino assets in multiple jurisdictions. The Barstool Sportsbook and Casino platform allows the company to tap into niche markets such as rugby union, lacrosse and other sports.

PENN has operated a robust business, generating more than 18% growth in the past five years.

On the back of multiple macro-headwinds, revenue growth has slowed down substantially in the past year.

However, despite the slowdown in sales, it’s done an incredible job of maintaining its eye-catching profitability profile. In fact, its profitability numbers are comfortably ahead of its historical numbers, pointing to a substantial upside ahead for its stock.

Nuvve Holding (NVVE)

Nuvve Holding (NASDAQ:NVVE) is an innovative green energy player on the brink of a breakout.

With a mission to revolutionize electric transportation, Nuvve provides cutting-edge charging solutions for electric buses and similar vehicles through its Vehicle-to-Grid (V2G) technology.

Nuvve’s V2G software enables bidirectional energy transfer, enabling EVs to effectively charge their batteries and send power back to the grid as required.

It allows users to optimize energy flow, ensuring efficiency and cost-effectiveness, reduction of peak demand, and seamless integration of renewable energy sources.

Nuvve has done remarkably well to narrow its losses in recent quarters, making significant strides in expanding its electric grid services across North America and Europe.

The adoption of electric vehicles accelerates, and the firm benefits immensely from improvements in V2G technology and a swelling customer base.

B2Gold (BTG)

Amidst growing concerns of an economic downturn, investors are betting big on gold and gold-related investments for financial stability.

One standout company in the sector, trading at a remarkably attractive price, is B2Gold (NYSE:BTG). The Vancouver-based gold producer boasts multiple operational mines across Africa and Asia.

As inflation fears surge, B2Gold and other gold stocks are popular among investors looking to hedge against market uncertainties.

Diversifying into assets such as gold and commodities offers a buffer in turbulent times. B2Gold has an A-rated profitability profile while trading at a modest 2.7 times forward sales. This is despite a weak business environment and supply-chain imbalances.

Also, the stock yields an enticing return of over 4%. This dynamic combination positions the stock as an attractive prospect for investors navigating the evolving economic landscape.

Wyndham Hotels & Resorts (WH)

Wyndham Hotels & Resorts (NYSE:WH) is a global lodging giant on the rebound as the appetite for travel remains insatiable. It’s benefitting from the “revenge travel” trend, and recent performances have shown its robust resilience.

Last quarter, Wyndham effectively outpaced analysts’ expectations with its earnings per share of 86 cents, surpassing estimates by six cents.

The company also raised its fiscal year 2023 adjusted dividend per share guidance following an 11% growth in comparable sales and a 15% increase in comparable adjusted DPS.

Wyndham has strong exposure to Macao, witnessing a strong uptick in tourism numbers due to a robust influx of international tourists. Wyndham’s portfolio in Macau spans 11 upscale to economy brands, positioning it for spectacular growth numbers ahead.

As its growth trajectory continues, Wyndham is well-positioned to elevate its earnings further and remain a premier player in the hospitality sphere.

National Fuel Gas (NFG)

National Fuel Gas (NYSE:NFG) operates a leading energy business that sets itself from its peers because of its robust vertically integrated business model. It serves over 754,000 customers in Western New York and Northwestern Pennsylvania while capitalizing on bountiful natural gas reserves in the Marcellus and Utica shale basins.

Its integrated approach offers unique advantages, offering operational scale and greater adaptability along the hydrocarbon value chain and to fluctuating commodity prices.

With the Biden Administration’s plans for 67% of cars and light-duty trucks to be emissions-free, demand for natural gas is poised for substantial growth ahead.

Natural gas is a cleaner alternative to coal plants, holding significant potential in a world increasingly focused on sustainability.

NFG is coming off a record-breaking year, growing its sales and EBITDA by more than 24% and 19%, respectively, on a year-over-year basis.

Its operating cash flows have soared over 27%, further strengthening its dividend-paying ability.

Illumina (ILMN)

Illumina (NASDAQ:ILMN) is a pioneer in the realm of DNA sequencing and continues to reshape the healthcare landscape.

Its DNA sequencing technology was a smash hit during the pandemic, enabling researchers to study the coronavirus’s genetic makeup, track its mutations, and develop an effective treatment plan.

With its focus on high-precision DNA and RNA reading tools and consumables, the firm has distinguished itself from competitors by delivering highly accurate readings of short DNA segments.

Its unique capabilities set the firm apart from others specializing in longer DNA reads with lower accuracy.

Post-pandemic headwinds and the adverse macro environment have negatively impacted Illumina’s business.

It’s looking to strengthen its bottom line, planning to reduce annualized run rate expenses by over $100 million, boosting margins and unlocking capital for investments.

Forward revenue estimates point to 8% growth, while analysts at Tipranks feel that the stock is trading at over a 17% discount.