Tuesday, April 30, 2024

Buy these 7 Stocks for 100% Return by 2025

HomeWARBuy these 7 Stocks for 100% Return by 2025

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Source: US NEWS 


Getting rich quick is the dream, but the reality is that building long-term wealth takes time and smart investing. While past performance is no guarantee of future returns, picking the right stocks can set you on the path to doubling your money in just a few years.

This article profiles seven stocks across various sectors that analysts and experts think have the potential to deliver 100% or greater returns by 2025. But keep in mind, investing in individual stocks carries risks. Be sure to do your own research before buying.

Table of Contents

  • Overview
  • Lovesac (LOVE)
  • Beam Therapeutics (BEAM)
  • Wheaton Precious Metals (WPM)
  • Skeena Resources (SKE)
  • SkyWater Technology (SKYT)
  • AST SpaceMobile (ASTS)
  • Wallbox (WBX)
  • The Takeaway
  • FAQ

Overview

After a rocky 2022, many investors are looking for opportunities to recoup their losses and get back on track for retirement, home ownership, or other financial goals.

While past performance doesn’t guarantee future returns, stocks that could potentially double in value over the next few years may provide that opportunity. According to financial research and analysis site MarketBeat, these seven stocks have upside potential of 100% or more over the next 12–18 months based on analysts’ consensus price targets.

The stocks covered represent a diverse mix of sectors including consumer discretionary, healthcare, materials, technology, and communication services. Some are established mid-cap companies while others are more speculative small-cap or penny stocks with higher volatility but explosive growth potential.

When researching and picking individual stocks, be sure to consider your own risk tolerance, investment timeline, and asset allocation strategy. Work with a financial advisor if needed. While higher reward potential exists with individual stocks, so does higher risk compared to funds.

Now let’s dive into why analysts think each of these seven stocks could double your money by 2025.

Lovesac (LOVE)

  • Sector: Consumer Discretionary
  • Market Cap: $362 Million
  • Analyst Ratings: 6 Buy, 0 Hold, 0 Sell
  • Consensus Price Target: $57 (+139% upside)

(Lovesac) is a furniture retailer specializing in a modular couch system called “sactionals” along with other home furnishings like beanbag chairs and décor.

The company saw explosive growth during the pandemic as consumers invested in home offices and comfortable living spaces. While growth is normalizing post-pandemic, Lovesac is still expanding thanks to its unique and customizable furniture models.

In Q1 2024, Lovesac reported year-over-year revenue growth of 10%. Analysts expect this steady expansion to continue, forecasting 40% earnings growth over the next 12 months.

As the company scales, profitability improves, and unique products resonate with consumers, analysts see significant upside potential in the stock.

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Beam Therapeutics (BEAM)

  • Sector: Healthcare
  • Market Cap: $1.85 Billion
  • Analyst Ratings: 7 Buy, 3 Hold
  • Consensus Price Target: $64 (+175% upside)

Beam Therapeutics is a clinical-stage biotech company focused on developing precision genetic medicines through the use of base editing. This is an emerging field of gene therapy that corrects mutations without making double-stranded breaks in the DNA helix.

Beam’s proprietary base editing technology called BEAM-101 aims to treat sickle cell disease, a genetic blood disorder that affects millions globally. Other candidates in Beam’s pipeline use base editing to potentially treat diseases like glycogen storage disorder type 1a and alpha-1 antitrypsin deficiency.

Gene editing is widely viewed as the future of medicine. Beam has established itself as a leader in base editing technologies. While still a clinical-stage company, Beam’s approach appears safer and more precise than traditional CRISPR-based treatments.

A multi-billion dollar partnership with pharmaceutical giant Pfizer also validates Beam’s technology and de-risks its path to commercialization. With strong clinical data over the next couple years, analysts see Beam’s innovative platform fueling huge growth.

Wheaton Precious Metals (WPM)

  • Sector: Materials
  • Market Cap: $18.63 Billion
  • Analyst Ratings: 6 Buy, 3 Hold, 0 Sell
  • Consensus Price Target: $392.71 (+857% upside)

As a streaming and royalty company in the mining space, Wheaton Precious Metals has outsized leverage to the prices of gold, silver, copper, and other metals. The company provides financing to miners in exchange for the right to purchase these metals at fixed prices in the future.

With commodity prices rising and increased industrial demand, analysts foresee substantial revenue and cash flow growth for Wheaton in the years ahead. Being a streaming company also means Wheaton avoids many of the risks associated with traditional miners.

The company pays a modest dividend as well yielding 1.3%. Shares trade at a reasonable forward P/E of 25x. Wheaton’s diversified portfolio of high-quality mining assets makes it a lower risk option for gaining leveraged upside exposure to metal prices.

Skeena Resources (SKE)

  • Sector: Materials
  • Market Cap: $555 Million
  • Analyst Ratings: 1 Buy, 0 Hold, 0 Sell
  • Consensus Price Target: $16 (+252% upside)

Headquartered in Canada, Skeena Resources is a junior mining company focused on exploring and developing precious metal deposits in British Columbia.

Its flagship Eskay Creek gold-silver project has Tier 1 potential thanks to high grades and favorable metallurgy. Updated mineral resource estimates point to over 4 million ounces of gold equivalent resources.

Skeena is still in the early exploration and permitting stage. If Eskay Creek continues to advance as hoped, the company may attract takeover interest from larger miners. Its small market cap and penny stock status provide huge upside if exploration success continues.

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Mining stocks offer leveraged exposure to underlying commodity prices but with greater risk. Skeena is best suited for risk-tolerant investors bullish on gold and silver over the long run.

SkyWater Technology (SKYT)

  • Sector: Technology
  • Market Cap: $309 Million
  • Analyst Ratings: 1 Buy, 0 Hold, 0 Sell
  • Consensus Price Target: $20 (+191% upside)

SkyWater Technology aims to onshore semiconductor manufacturing back to the United States through an advanced wafer fabrication facility in Minnesota.

The CHIPS Act’s $52 billion of federal investments also incentivizes companies like SkyWater to ramp up domestic chip production. With many new semiconductor fabs years away from completion, SkyWater provides a unique pure-play foundry option.

The company reported 61% year-over-year revenue growth in Q3 2022. Its forward P/E ratio of 16x also shows promising value for the booming sector. SkyWater enables technologies like AI, quantum computing, IoT, and healthcare that will shape the future.

While not yet profitable, analysts remain very bullish on SkyWater’s potential as it scales. The global semiconductor market outlook combined with geopolitical moves toward U.S. chip self-sufficiency make the bull case compelling.

AST SpaceMobile (ASTS)

  • Sector: Communication Services
  • Market Cap: $838 Million
  • Analyst Ratings: 2 Buy, 0 Hold, 0 Sell
  • Consensus Price Target: $21 (+436% upside)

AST SpaceMobile is an early stage company launching the world’s first space-based cellular broadband network to provide connectivity globally.

Using satellites in low Earth orbit, AST aims to enable broadband service directly to standard mobile phones without gaps in coverage across land, air, and sea. This would connect the approximately 5 billion phones without cellular broadband today.

Phase 1 of the SpaceMobile constellation plans to launch 25 satellites by 2024. While the company is still pre-revenue and high risk, the service potential is massive if the technology works as hoped.

Between the backing of strategic partners like Rakuten, Vodafone, and American Tower, AST’s experienced leadership team, and analysts’ bullish expectations, the upside could be enormous if executed properly. For investors with high risk appetite, ASTS stock provides a satellite communications moonshot.

Wallbox (WBX)

  • Sector: Consumer Discretionary
  • Market Cap: $476.21 Million
  • Analyst Ratings: 6 Buy, 1 Hold, 0 Sell
  • Consensus Price Target: $8 (+198% upside)

Wallbox is a company building smart electric vehicle charging systems and power management solutions. Its products allow EV owners to intelligently charge their vehicles at home, the office, or public spaces.

As a key part of enabling widespread EV adoption, Wallbox is positioned to see massive growth in the years ahead. The company recently announced partnerships with automakers like Fisker, Nissan, and Mercedes.

Revenue more than doubled in the most recent quarter. Commercial and residential installations are accelerating globally. The Inflation Reduction Act also promises to incentivize U.S. EV purchases further.

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Trading at just 2x 2023 sales, WBX remains undervalued relative to the huge secular growth runway as EVs gain market share over this decade. Its charging technology will play a vital role in electrifying transportation.

The Takeaway

Finding stocks that can double your money in a few short years is not easy, but also not impossible with the right research and preparation.

The seven stocks profiled here appear positioned to generate significant returns before 2025 based on their innovative products and services, strong financials and growth metrics, and overall secular tailwinds propelling their respective industries higher.

However, investing in individual stocks does carry increased risk versus diversified funds. Construct a balanced portfolio aligned with your risk tolerance, time horizon, and investment goals. Work with a financial advisor if needed.

While ultimately past performance does not guarantee future results, the upside potential highlighted by analysts suggests these stocks may have the wind at their backs over the next couple years. Do your own due diligence, invest for the long-term, and you could be rewarded handsomely.

FAQ

What is the fastest way to double your money?

The fastest way to double your money is through highly risky investments and speculation. While potentially lucrative, these strategies can also lead to losing your entire investment. Most financial advisors recommend a diversified approach using stocks, bonds, real estate and other assets aligned with your timeline and risk tolerance. Though slower, steady compound growth over decades is likely to build more wealth than risky speculation.

How long does it take to double your money in the stock market?

Historically, the stock market has returned an average of 7% annually after inflation. At that rate, it would take approximately 10 years to double your money in the overall stock market based on the rule of 72. Individual stocks can see more extreme price swings over shorter periods, both up and down. On average stocks may double over 3–5 years during bull markets.

What is a reasonable rate of return on stocks?

A reasonable rate of return for the stock market as a whole is considered 7–10% annually on average. However, individual stocks can vastly outperform or underperform the overall market in any given year. Factors like the state of the economy, interest rates, corporate earnings, and investor sentiment all impact returns. Aim to beat inflation by 3–4% at a minimum when investing for the long term.

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Mezhar Alee
Mezhar Alee
Mezhar Alee is a prolific author who provides commentary and analysis on business, finance, politics, sports, and current events on his website Opportuneist. With over a decade of experience in journalism and blogging, Mezhar aims to deliver well-researched insights and thought-provoking perspectives on important local and global issues in society.

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