In this article, we will be taking a look at 10 stocks that could 10x over the next 10 years. To skip our detailed analysis of current market dynamics, you can go directly to see the 5 Stocks That Could 10X Over the Next 10 Years.
Every investor wants to believe that the stocks they put their money in will help them rack up some gains in a few years. If they’re lucky, the stocks they chose will show immense gains in about five or 10 years. However, picking the right stocks to make this belief a reality is often a difficult thing to do for most investors, especially those just starting out in the stock market. This article will be compiling the opinions of several credible financial websites on which stocks can potentially become multi-baggers within the next ten years, potentially promising 10x returns to their investors within this time frame, to give such investors a general idea of which sectors and companies to invest in this year.
For starters, investors can benefit from keeping an idea on transformational technologies and areas this year, such as information technology and electric vehicles. At the same time, electric vehicle stocks are also offering investors a nice opportunity as governments and consumers globally become more concerned about the impending climate crisis. Another sector perhaps worth looking at is the cybersecurity sector, as MAI Capital Management’s chief equity strategist Chris Grisanti noted on CNBC’s “The Exchange” on August 30 while talking about CrowdStrike Holdings, Inc. (NASDAQ:CRWD):
“I kind of like the setup for Crowdstrike here. People wanna own this stock in this type of tech market. Except for AI, cyber security is the hottest area of tech. The second thing Crowdstrike has going for it is expectations are finally low enough, I think, that they’re gonna be easy to clear. They may be realistic or even pessimistic. The metric to look for is net annual recurring revenue, and it’s still supposed to shrink about 15% this quarter. So even a smaller shrinkage, of about 10-12%, which is what I’m expecting, should be seen as good news.”
In big tech and artificial intelligence, most people know about the leading stocks already, and one of them is Meta Platforms, Inc. (NASDAQ:META). Mark Zuckerberg’s communications giant has been doing extremely well this year, falling behind only NVIDIA Corporation (NASDAQ:NVDA), making it a tempting option for those looking to invest in AI. Here’s what Rob Sechan, the co-founder and CEO of NewEdge Wealth, had to say about the stock this July on CNBC’s “Halftime Report“:
“They continue to execute. They’ve highlighted some of their use cases for AI. Stock’s still not expensive, we got along at about ten times, and it’s trading at about 20 times next year, 23 times current. So I think this is one of those companies that can continue to focus on cost and see their core business re-accelerate, which they are. It should have some more upside relative to the rest of the sector.”
These are merely two examples of stocks that investors can start looking at this year if they’re chasing larger gains for the next decade or so, but there is a large variety of other names to pick and choose from as well, including NIO Inc. (NYSE:NIO) in the electric vehicle space and Snap Inc. (NYSE:SNAP) in the communications or social media space. Considering this, we have compiled a list of some of the best stocks for the next 10 years. It includes some of the best growth stocks that can explode in 10 years in a variety of sectors and industries.
Source:unsplash
Our Methodology
To select the stocks for our list below, we consulted several financial websites, such as Motley Fool, US Money News, Seeking Alpha, and Finachill. Using these websites, we first collected a list of 25 stocks that were considered to potentially rise 10x over the next 10 years. We then shortlisted 10 stocks from this list by using Insider Monkey’s hedge fund data for the second quarter. The stocks were thus shortlisted and ranked on the basis of the number of hedge funds holding stakes in them, from the lowest to the highest number.
Stocks That Could 10X Over the Next 10 Years According to the Internet
10. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 19
NIO Inc. (NYSE:NIO) is an automobile manufacturing company that develops and sells smart electric vehicles in China. The company is based in Shanghai and offers five and six-seater electric SUVS alongside smart electric sedans. It also provides power solutions such as Power Home, which is a home charging solution; Power Swap, a battery swapping service; Power Charger and Desination Charger; and Power Mobile, among more.
As of August 11, Edison Yu, an analyst at Deutsche Bank, maintains a Buy rating on shares of NIO Inc. (NYSE:NIO). The analyst also raised the firm’s price target on the stock from $13 to $17.
There were 19 hedge funds long NIO Inc. (NYSE:NIO) in the second quarter. Their total stake value in the company was $120.5 million.
Like Meta Platforms, Inc. (NASDAQ:META) and Snap Inc. (NYSE:SNAP), NIO Inc. (NYSE:NIO) is a popular stock that could potentially become a multi-bagger in the next 10 years.
9. Beam Therapeutics Inc. (NASDAQ:BEAM)
Number of Hedge Fund Holders: 20
An Overweight rating was reiterated on shares of Beam Therapeutics Inc. (NASDAQ:BEAM) on August 29 by Rick Bienkowski, an analyst at Cantor Fitzgerald. The analyst also maintained a price target of $56 on the stock.
Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that is engaged in the development of precision genetic medicines for patients suffering from serious diseases in the US. The company is based in Cambridge, Massachusetts, and it develops BEAM-101 and BEAM-102 for treating sickle cell disease beta-thalassemia, alongside other medicines.
Beam Therapeutics Inc. (NASDAQ:BEAM) was spotted in the 13F holdings of 20 hedge funds in the second quarter, with a total stake value of $538.6 million.
Holding 8.3 million shares in the company, ARK Investment Management was the most prominent shareholder in Beam Therapeutics Inc. (NASDAQ:BEAM) at the end of the second quarter.
8. AbCellera Biologics Inc. (NASDAQ:ABCL)
Number of Hedge Fund Holders: 25
Baker Bros. Advisors was the most prominent shareholder in AbCellera Biologics Inc. (NASDAQ:ABCL) at the end of the second quarter, holding 16.4 million shares in the company.
AbCellera Biologics Inc. (NASDAQ:ABCL) is a life sciences tools and services company that builds an engine for antibody drug discovery and development. It is based in Vancouver, Canada. The company’s engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies. It also has a research collaboration and license agreement with Eli Lilly and Company.
Andrea Tan, an analyst at Goldman Sachs, maintained a Buy rating on shares of AbCellera Biologics Inc. (NASDAQ:ABCL) on August 4. The analyst also placed a price target of $24 on the stock.
We saw 25 hedge funds long AbCellera Biologics Inc. (NASDAQ:ABCL) in the second quarter. Their total stake value in the company was $226.2 million.
7. HCP, Inc. (NYSE:HCP)
Number of Hedge Fund Holders: 26
HCP, Inc. (NYSE:HCP) was seen in the portfolios of 26 hedge funds in the second quarter, with a total stake value of $281.3 million.
HCP, Inc. (NYSE:HCP) is an application software company operating in the information technology sector. It provides multi-cloud infrastructure automation solutions across the globe and is based in San Francisco, California. The company’s products include Terraform, an infrastructure provisioning product that applies an Infrastructure-as-Code approach where processes and configurations required to support applications are codified and automated. Vault is another product the company offers that provides secrets management and data protection to enable security teams to apply policies based on application and user identity.
As of June 8, Sterling Auty, an analyst at MoffettNathanson, maintains an Outperform rating on shares of HCP, Inc. (NYSE:HCP). The analyst also placed a price target of $34 on the stock.
Marshall Wace LLP was the largest shareholder in HCP, Inc. (NYSE:HCP) at the end of the second quarter, holding 1.6 million shares in the company.
6. JFrog Ltd. (NASDAQ:FROG)
Number of Hedge Fund Holders: 27
JFrog Ltd. (NASDAQ:FROG) is a systems software company operating in the information technology sector. The company is based in Sunnyvale, California, and it provides the DevOps platform in the US, Israel, and internationally. Its products include JFrog Artifactory, a package repository allowing teams and organizations to store, update, and manage their software packages, and JFrog Pipelines, an integration and continuous delivery tool for automating and orchestrating the movement of software packages.
At the end of the second quarter, 27 hedge funds held stakes in JFrog Ltd. (NASDAQ:FROG). Their total stake value in the company was $333.8 million.
Gil Luria, an analyst at DA Davidson, maintains a Buy rating on shares of JFrog Ltd. (NASDAQ:FROG) as of August 3. The analyst also raised the firm’s price target on the stock from $30 to $40.
Like NIO Inc. (NYSE:NIO), Meta Platforms, Inc. (NASDAQ:META), and Snap Inc. (NYSE:SNAP), JFrog Ltd. (NASDAQ:FROG) is considered to be a stock that could potentially rise 10x over the next 10 years.
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Disclosure: None. 10 Stocks That Could 10X Over the Next 10 Years is originally published on Insider Monkey.