However, investor sentiment appears to be buoyant due to the potential for graphene’s use in a wide range of applications. This could mean that demand increases significantly in future years, which could boost the company’s profitability.

Of course, there are other growth stocks that have doubled in recent years. One such company that reported on Monday could be a strong performer over the medium term.

High growth

Step forward data and insights specialist GlobalData (LSE: DATA). It reported strong revenue growth across all of its regions, with revenue visibility also improving. The company has been able to strengthen its business infrastructure and commercial scale, while also continuing an acquisition programme that has enabled it to grow in recent years. And with new committed banking facilities of £75m, it appears to have the financial capacity to engage in further M&A activity.

GlobalData also announced that it’s in advanced discussions regarding the potential acquisition of data and analytics provider Research Views. While there’s no certainty that the deal will go through, it shows that the company remains bullish about its future prospects. And having grown revenue and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) by 22% and 14% respectively in the 2017 financial year, it appears to be performing well.

The stock has risen by 140% in the last five years. With its forecast to grow its bottom line by 21% this year, followed by further growth of 20% next year, it appears to be in a strong position to generate further capital growth. As such, now could be the right time to buy while it has a price-to-earnings growth (PEG) ratio of just 1.2.

Risk/reward

Of course, Versarien could continue to post high share price growth over the medium term. Investor appetite for riskier, yet more rewarding shares appears to be high. The recent stock market correction is unlikely to change this stance, which could mean that the company’s valuation continues to rise even though it already trades on supremely high metrics.

Furthermore, there is the potential for success in the trials being run Versarien. Ultimately, it’s not yet known whether graphene can be used in a wide variety of applications but its potential appears to be high. There seems to be a good chance that it will become a more widely-used material over the medium term. As such, for investors who are less risk averse and comfortable with a volatile share price, Versarien could be a worthwhile investment for the long run.

The post Why Versarien plc isn’t the only growth stock that could double again appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.