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3 Stocks That Can Turn $10,000 Into $50,000 By 2025

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Bullish and bearish stock bull market

Important points

  • One of these companies is about to hit $1 billion in sales with its first product.

  • The second company recently reached a major revenue milestone.

  • And a growing and loyal customer base fuels the third company’s growth.

As a long-term investor, it’s always a good idea to look a few years ahead. A particular company may be doing well today. But it’s important to look at potential gains going forward, and that should give us an idea of ​​whether the stock has what it takes to go higher.

I’m always looking at the projects in the pipeline, the enduring power of today’s revenue generators, and industry forecasts. These points can help us identify stocks that can turn $10,000 into $50,000 in just three years. Here are three candidates primed for that kind of explosive growth.

1. Novax

Novavax (NASDAQ:PLKMZ, -3.05%) is awaiting US approval for its coronavirus vaccine. The news could come any day. Meanwhile, more than 35 countries around the world have approved the product. Novavax expects sales of between $4 billion and $5 billion this year. That’s a big deal for the first commercialized biotech product.

But that is not all. The company has already started a phase 1/2 trial for its combined flu and coronavirus vaccine. He hopes to be able to report data from the study next month. This potential product could generate high income in the long run. Experts say the coronavirus will hold. And a vaccine that protects against this virus and the flu could be a big win.

Novavax shares are very cheap right now. They are only trading at 3.5 times estimated earnings. And the stock is trading about $120 below Wall Street’s median price forecast. Once this dynamic biotech starts reporting billions in sales, the stock could take off.

2. Exélixis

The active ingredient cabozantinib exélix (WKN: 936718, -1.31%) could make the company a superstar in tomorrow’s cancer treatment world. The company has already started generating revenue from treatments based on this compound. It markets Cabometyx for the treatment of renal cell carcinoma, hepatocellular carcinoma, and thyroid cancer. The cabozantinib business achieved a major milestone in full year 2021, generating $1.08 billion in net sales.

But Exelixis’ growth has only just begun. The company is testing cabozantinib in dozens of clinical trials in 14 different oncology categories. Seven of these studies are in Phase 3. In addition, the Company is working on more than 10 early stage programs. One of the goals for this year is to get up to five candidates from early-stage programs through to preclinical testing. The company also anticipates “multiple” pivotal clinical trial reports of its cabozantinib program.

Exelixis shares have started to gain some momentum. They are up 14% so far this year, but are still reasonably priced. Shares are trading at 17 times estimated earnings, up from more than 30 a year ago.

3. figs

figs (NASDAQ: 0.49%), a maker of stylish and comfortable medical gowns, went public last May. The stock went from $22 to around $50 in two months. Since then, however, the stock’s performance has been disappointing. The stock ended last year down more than 8%.

Here’s the good news: This lackluster performance could present a buying opportunity. Because Figs has not disappointed when it comes to revenue growth. The company increased its revenue 60% last year to a record $420 million.

But here are the metrics that I like the most, because they show the growth of the customer base and customer loyalty. Figs active customers grew 46% to 1.9 million. Net revenue per active customer increased 11%. And the average order value increased by 12%. This shows that Figs have managed to attract medical staff, and they keep coming back and spending more. Figs forecasts at least a 30% increase in sales this year compared to last year.

What’s next for figs? International expantion. The company currently ships to Canada, Australia, and the United Kingdom. But it plans to increase its presence in those markets and expand into new markets. Figs is targeting sales of more than $1 billion by 2025. If Figs pulls it off, the shares of this young company could soar.

3 Stocks That Can Turn $10,000 Into $50,000 By 2025 The article first appeared in The Motley Fool Germany.

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This article represents the author’s opinion, which may differ from the “official” recommendation position of a premium Motley Fool advisory service. Questioning an investment thesis, even one of your own, helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
This article was written by Adria Cimino and was published on Fool.com on 03/11/2022. It has been translated so that our German readers can join the discussion.

Adria Cimino does not own any of the shares mentioned. The Motley Fool recommends Exelixis.

Motley Fool Germany 2022

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