Can you triple your money in one decade or less? Absolutely. Plenty of stocks have delivered those kinds of gains in the past. And there are stocks that can do so in the future.
There are two key ingredients needed, though. First, there must be a huge addressable market that’s largely untapped. Second, the companies must have competitive advantages that enable them to capture enough of that market to generate sizzling growth.
Here are three stocks that definitely check off both of these boxes. I think that you can buy these stocks right now and potentially triple your investment over the next 10 years — and possibly even sooner.
Image source: Getty Images.
1. Guardant Health
Guardant Health(NASDAQ:GH) held its initial public offering (IPO) in October 2018. If you had invested in the stock at its IPO, your initial investment would have nearly quadrupled in 20 months. That’s a whole lot better than tripling in a decade.
I’m convinced that Guardant Health can deliver mind-blowing returns over the next 10 years as well. The company is a pioneer in the liquid biopsy market. If you’re not familiar with liquid biopsies, they’re blood tests that can detect fragments of DNA that have broken off of cancer cells. Guardant Health already has two liquid biopsy products on the market that are growing sales like crazy.
Guardant360 helps match patients who have been diagnosed with advanced-stage cancer with the most appropriate therapy. Drugmakers use GuardantOMNI to screen cancer patients for clinical studies of experimental drugs. The estimated market for Guardant360 is around $6 billion in the U.S. alone. To put that number in perspective, Guardant Health’s market cap right now is around $7 billion.
If that sounds appealing, make sure you’re sitting down before you read what’s next. Guardant Health has also developed two other liquid biopsy products that aren’t commercially available yet. LUNAR-1 holds the potential to detect cancer recurrence, while LUNAR-2 could allow cancer to be detected at very early stages.
The addressable market for these two products tops $45 billion annually. If Guardant Health can capture just a fraction of this market (and I think it will), this healthcare stock will skyrocket even more in the next few years.
2. MongoDB
MongoDB(NASDAQ:MDB) went public around a year before Guardant Health did. If you had invested in the database company’s IPO, you’d now be sitting on a return of more than 550% in less than three years.
You might be thinking, “Yeah, but it’s easier for stocks to soar like that at first and a lot harder to keep the momentum going.” And you’d be right. However, I think that MongoDB has what it takes to keep its sizzle from fizzling.
For one thing, the database market continues to grow briskly. Market researcher IDC estimates that the global database market will jump from $71 billion in 2020 to $97 billion by 2023. If we assume that this growth rate will continue throughout the decade and that MongoDB’s share price simply grows at the rate of the overall database market, the stock will nearly quintuple over the next 10 years.
Here’s the kicker: MongoDB is growing much faster than the overall database market is. That’s primarily because of the company’s Atlas cloud-based database-as-a-service platform. There’s a massive shift with customers migrating their data to the cloud. Atlas provides a way for them to achieve this while minimizing the hassle.
3. The Trade Desk
I’m not going to discuss how much money you would have made if you had invested in The Trade Desk‘s (NASDAQ:TTD) IPO in 2016. You could have waited until the beginning of 2018 to buy the stock and still quadrupled your initial investment. Keep in mind, this return reflects the fact that The Trade Desk’s shares remain nearly 20% below their highs from earlier this year.
Image source: Getty Images.
My view is that the coronavirus-driven market sell-off presents a fantastic opportunity to buy The Trade Desk stock. The company is the leader in buy-side programmatic advertising. For a long time, advertising agencies had to negotiate back and forth with media outlets to place ads. The Trade Desk’s software platform allows them to do it instantly and a lot more cost-effectively.
The Trade Desk’s opportunity is so great that it’s likely to perform well in 2020 despite the likelihood that the COVID-19 pandemic will dampen advertising spending. And the long-term prospects for the company really look attractive.
By 2025, the total global advertising market should reach $1 trillion. The programmatic advertising market currently stands at only $34 billion but is growing five times faster than the overall market. With TV streaming services fueling increased demand for The Trade Desk’s programmatic advertising platform, I think there’s a very good chance the tech stock could triple in value by the end of this decade if not sooner.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
