2014 IPO Market: What to Watch and How to Profit Now

Through today, 111 initial public offerings have taken place in the United States this year, making 2014 the busiest year for the IPO market since the "dot-com" era of 1999 through 2001.

Aside from 2014, the busiest year in the last decade was 2007, when 86 companies went public through May. This year has already outpaced 2007 by 29%, and there are still five full trading days remaining in May.

In the full year of 2007, there were 213 companies that held initial public offerings. If 2014 maintains its current pace, more than 275 companies will end up hitting the market this year.

And so far, the 2014 IPO market has outgained the broader markets...

On average, this year's IPOs have experienced a 3.3% gain since they went public. While that gain is somewhat modest, it compares to a 0.3% loss for the Dow Jones Industrial Average, a 2% gain for the S&P 500, and a 1.1% loss for the Nasdaq.

But not every IPO has brought in modest returns - some have given early investors huge profits in just a short period of time. Zoes Kitchen Inc. (NYSE: ZOES) is up 94% since hitting the market on April 10. Zendesk Inc. (NYSE: ZEN) has gained 91% since May 14, and Genocea Biosciences Inc. (Nasdaq: GNCA) is up 57% from Feb. 4.

So far, the healthcare industry has led the way with 42 IPOs to date. The technology sector has seen 29 companies hit the market in 2014, while the financial sector is third with 13 IPOs.

But a more staggering number indicating just how big 2014's IPO market is has been the amount of money raised so far.

Through May 22, a combined $22.4 billion has been raised by this year's IPOs. That's up 33% from this point in 2013. Last year had previously been the biggest year for IPOs in a decade, raising $54.9 billion.

So far, 2014 is on pace to crush that.

"The US IPO market got off to a record start in the 1Q 2014, surpassing all historical first quarter activity since 2000 as biotech and tech firms rushed through a window opened by growth-hungry investors," analysts at IPO investment research firm Renaissance Capital wrote. "Looking ahead, biotechs will be abundant, but the U.S. IPO market should continue 2013's strong showing of technology firms and trend toward larger deals, including leveraged buyouts, notable spinoffs and Chinese firms."

Even though more than $22 billion has already been raised, we've barely scratched the surface for how much money will flood into this year's IPO market.

Because some huge deals are expected later in 2014...