3 Stocks That Could Turn $1,000 into $5,000 by 2030 - Apple Latest
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3 Stocks That Could Turn $1,000 into $5,000 by 2030

Celsius, On and Coupang are all hidden gems in a frenetic market.

along withStandard & Poor's 500Indices andNasdaq ResonanceWith the indexes hovering near all-time highs, it may seem difficult to find growth stocks that can deliver multiple gains over the next few years. But if you dig a little deeper, you can find some hidden gems that still have the potential to turn a modest $1,000 investment into $5,000 by the end of the decade. Here are a few investment options to consider.

1. Selcius Holdings, Inc.

Celsius Holdings (NASDAQ resonance stock code: CELH)sells a sugar-free energy drink made from natural ingredients such as green tea, ginger and amino acids. The company claims its drinks have "thermogenic" properties that accelerate a person's metabolism and burn more body fat during workouts.

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Photo courtesy of Getty Images : Getty Images.

Celsius' healthy approach has struck a chord with young consumers, and it has become one of the most popular brands behind Red Bull and Celsius.Monster DrinksThe Third Most Powerful U.S.DrinksIn 2022, it also partnered withPepsiCoThe company has signed a distribution agreement in the United States and continues to launch its beverages in additional overseas markets.

In 2023, Celsius' revenues surged 102% to $1.3 billion and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 316% to $296 million. Analysts expect the company's revenue to grow by 42% and 33% in 2024 and 2025, respectively.

Celsius shares are trading at 10 times this year's sales, which is not too expensive for these growth rates. If Celsius can achieve these goals and continue to grow revenues at a compound annual growth rate (CAGR) of 30% between 2025 and 2030, it could reach $9.2 billion in revenues by the final year.

This would be more than seven times higher than the income in 2023, so it could easily turn a $1,000 investment into more than $5,000.

2. On Holding

On Holding (New York Stock Exchange: ONON)is a Swiss manufacturer of sports shoes and apparel. It has taken over with its proprietary CloudTec air cushion, which expands when the foot is in the air and locks in place when it hits the ground, making the soles of the feet more rigid. With big-name endorsements from athletes like Nicola Spirig and Roger Federer, On dominates the Swiss market.

On's core growth strategy is aligned with Lululemon Athletica Similarity: It is expanding the channels through which the曏 consumer is directly fed to reduce dependence on wholesale retailers, selling products at high prices, and maintaining pricing power by limiting price reductions.

In 2023, On's revenues and Adjusted EBITDA will soar by 47% and 68%, respectively. with the expansion of the Direct Beef consumer channel, the entry of new territories, and the increase in market share, On expects its revenues to grow at a compound annual growth rate of 26% in 2026. if this goal is achieved, its annual revenues will double from CHF 1.8 billion (US$1.96 billion) in 2023 to CHF 3.6 billion (US$3.9 billion) in 2026. If this is achieved, annual revenues will double from CHF 1.8 billion (US$1.96 billion) in 2023 to CHF 3.6 billion (US$3.9 billion) in 2026. This is an impressive growth rate for a stock whose share price is only four times this year's sales.

If On achieves its goal of continuing to grow its revenues at a 20% compound annual growth rate between 2026 and 2030, it will reach CHF 7.5 billion (approximately $8.2 billion) in its final year. This would be four times higher than its revenues in 2023, and a slight improvement in its price-to-sales ratio would result in five times the earnings at the end of the decade.

3. Sedan chair

Coupang (NYSE: CPNG)It is the largest e-commerce company in Korea. It operates distribution centers within a seven-mile radius of Korea's 70% population, and locks in customers through its Prime-like Rocket Wow subscription service, which offers faster delivery options, free returns within 30 days, streaming video, food and cargos delivery, and other benefits for a monthly fee. The company is also expanding its business from Korea to Taiwan and other Asian markets.

By the end of 2023, Coupang's total number of active users had grown by 161 TP3T to 21 million, and the number of paid Wow users had grown by 271 TP3T to 14 million. For the year, revenue grew 181 TP3T to $24 billion and adjusted EBITDA nearly tripled to finally become profitable on a GAAP basis.

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Analysts expect Coupang's revenues to grow by 19% in 2024 and 16% in 2025, and if Coupang meets these expectations and continues to grow at a compound annual growth rate of 15% between 2025 and 2030, its revenues will reach $67 billion, nearly triple its 2023 revenues. That kind of growth by itself doesn't seem like enough to generate a fivefold increase in earnings, but Coupang's shares look very cheap right now, at just one times this year's sales.

In comparison.AmazonThe Coupang's share price is three times this year's sales. So if Coupang can continue to grow steadily and achieve an even higher price-to-sales ratio by the end of the decade, a $1,000 investment could easily turn into more than $5,000.

Should you invest $1,000 in Celsius now?

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John Mackey, former Chief Executive Officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's Board of Directors. Leo Sun owns shares of Amazon, Coupang, and On Holding. The Motley Fool owns and recommends shares of Amazon, Celsius, Coupang, Lululemon Athletica, and Monster Beverage, The Motley Fool owns shares of recommended Amazon, Celsius, Coupang, Lululemon Athletica, and Monster Beverage.The Motley Fool recommends On Holding.The Motley Fool has a disclosure policy.

3 Stocks That Could Turn $1,000 Into $5,000 By 2030 was originally published by The Motley Fool.

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