If you’re currently trying to find stocks that will make you millionaire in 5 years then it sounds like you are on the right track! Below is a list I have compiled of companies that I consider to be stocks that will make you a millionaire in 5 years.
This article is based on technical analysis/trend research/forex investment/stock investment advice. It was written to share my knowledge with the readers. By reading this article, you will gain knowledge & information about “Stocks That Will Make You A Millionaire In 5 Years”.
Cresco Labs
Marijuana is projected to be one of the fastest-growing industries in North America this decade, and the U.S. is at the center of this growth. If a report from New Frontier Data is correct, sales growth will average 21% through 2025. That makes U.S. multistate operator Cresco Labs (OTC:CRLBF) a potential millionaire-maker.
Like it peers, Cresco Labs has a burgeoning retail presence. Taking into account its recently closed purchase of Bluma Wellness and its pending acquisition of Cultivate in Massachusetts, it’ll soon have three dozen operating dispensaries and approximately one dozen additional retail licenses in its back pocket. Quite a few of the states Cresco is targeting, such as Illinois, are limited license issuers. This means they have a preset number of retail licenses they’ll issue in total. In other words, targeting limited-license states will ensure that Cresco can build up its brand without getting steamrolled by a larger player with deep pockets.
What’s even more impressive about Cresco Labs is the company’s wholesale operations. Wholesale often gets a bad rap in the cannabis industry because it generates lower margins than the retail side of things. However, Cresco offers more than enough volume to offset any margin weakness. That’s because it holds one of only a small number of cannabis distribution licenses in California, the largest pot market in the world. Being able to place its pot products into more than 575 dispensaries in the Golden State makes wholesale Cresco’s greatest asset.
IMAGE SOURCE: SQUARE.
Square
The War on Cash is alive and well, and fintech stock Square (NYSE:SQ) is leading the charge. Even with a $100 billion market cap, it could reasonably deliver a 500% to 1,000% return over the next decade.
First and foremost, Square generates consistent growth from its foundational seller ecosystem. This is a segment that provides point-of-sale devices, analytics, loans, and other tools to help businesses succeed. In the seven years leading up to the pandemic, the seller ecosystem’s gross payment volume (GPV) rose by an annual average of 49% to $106 billion. Since this is a merchant fee-based segment, the fact that a larger percentage of GPV is now coming from bigger businesses is a good sign for continued double-digit annual GPV growth.
However, most folks are enamored with peer-to-peer digital payment platform Cash App — and for good reason. Square announced that, in three years, Cash App’s MAU count more than quintupled to 36 million. Moreover, the company is generating $41 in gross profit per new user and paying less than $5 to attract each new MAU. Those are millionaire-making margins. With Cash App giving Square the ability to generate revenue from merchant transactions, bank transfers, investments, and even Bitcoin exchange, the sky’s the limit.
IMAGE SOURCE: GETTY IMAGES.
EverQuote
EverQuote operates an online insurance marketplace that allows consumers to compare policies. While insurance is a generally slow-growing (dare I say, boring?) industry, digital ad spending within the insurance industry is expanding quickly. Of the $16.7 billion in ad spending projected for 2021, $6.5 billion is digital spending. EverQuote solely operates in this digital ad space, which is expected to grow by an average annual rate of 16% through 2024.
Don’t forget about small-cap stocks — they can make you a millionaire, too. One fast-growing small-cap that finds itself in the perfect niche of a staple industry is EverQuote (NASDAQ:EVER).
EverQuote’s online marketplace is making the insurance buying and selling process so much more efficient. Consumers can do price-comparisons with the click of a button, while insurers can more effectively target their ad spend to motivated shoppers. Not surprisingly, 20% of all consumers who request a price comparison ultimately buy a policy through EverQuote’s marketplace.
As one final note, EverQuote has expanded beyond auto insurance into new verticals. These new verticals (home, rental, health, and life insurance) are growing at a considerably faster pace than its core auto insurance marketplace.
IMAGE SOURCE: REDFIN.
Redfin
The fifth and final supercharged stock that can make you a millionaire is technology-driven real estate company Redfin (NASDAQ:RDFN).
To cover the obvious, Redfin has absolutely benefited from historically low mortgage rates, which has fueled home buying and selling activity. But there’s more to like here than just favorable external factors.
For example, Redfin has differentiated itself in the cost-savings department. Redfin fully understands that it can woo its clients by saving them a boatload of money during the home purchase/selling process. That’s because it charges a listing fee of between 1% and 1.5%, which is up to two percentage points lower than traditional real estate companies. Considering how quickly home prices are rising, the amount Redfin is saving buyers and sellers is growing almost daily.
Real estate companies will also struggle to match the personalization that Redfin brings to the table. Its Concierge service helps with staging and upgrades to maximize the value of a home being sold. Meanwhile, RedfinNow allows the company to buy homes for cash, thereby removing the usual hassles and haggling that comes with selling a home.
It should be no surprise that Redfin’s share of U.S. existing home sales has nearly tripled (0.44% to 1.14%) since the end of 2015.This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
Lovesac
Have I mentioned that innovative small-cap stocks can make investors rich? When you think innovation, furniture stocks probably don’t come to mind. But in the case of Lovesac (NASDAQ:LOVE), innovation is driving superior and sustainable growth prospects.
The first readily differentiable thing you’ll notice about Lovesac is its furniture. Though it may once have been known for its bean bag-styled furniture, its sactionals now comprise more than 80% of total sales. Sactionals are effectively modular couches that can be arranged in a variety of ways to fit any livable space. The company offers more than 200 different cover choices with its sactionals, proving again that its furniture can work with any living space. And best of all, the yarn for its covers is made entirely from recycled plastic water bottles. Not surprisingly, Lovesac’s eco-friendly and choice-conscious furniture has struck a chord with its core user base: millennials.
Lovesac’s management team is impressive, as well. During the pandemic, most brick-and-mortar furniture stores were clobbered since they rely on foot traffic to drive sales. Meanwhile, Lovesac was able to effectively pivot its sales strategy to a direct-to-consumer and pop-up showroom model during the height of the pandemic. Lovesac’s operating model was already designed with lower overhead costs in mind prior to the pandemic; but with online sales skyrocketing, it allowed the company to push to recurring profitability two years before Wall Street had expected.
It may be “just furniture,” but Lovesac could potentially double its sales over the next four years.
IMAGE SOURCE: GETTY IMAGES.
Etsy
A final innovative stock that can make investors rich is e-commerce platform Etsy (NASDAQ:ETSY).
I know what you’re probably thinking: “But what about Amazon?” Interestingly, Amazon isn’t what I’d consider a direct competitor to Etsy. That’s because the Etsy platform predominantly focuses on small merchant customization and personalization. Amazon simply doesn’t offer the level of engagement or personalization consumers will find when shopping with Etsy’s sea of small businesses.
The real key for Etsy has been keeping shoppers engaged. While it’s been able to attract previous buyers back to the platform during the pandemic, what really stands out is the ability transform casual shoppers into habitual buyers — defined as shoppers who make purchases on six or more days totaling at least $200 in aggregate over the trailing 12-month period. In the first quarter of 2021, habitual buyer growth more than tripled.
The company isn’t a slouch when it comes to giving merchants the tools they need to succeed, either. It’s streamlined the analytics used by small merchants and introduced video listing to improve shopper engagement. Chances are that the Etsy growth story is still in the very early innings.
Nucor Corp.
- Annual dividend: $1.61
- Oct. 9, 2020 price: $48.86
- Dividend yield: 3.30%
Headquartered in Charlotte, Nucor is the largest steel producer in the U.S. It serves most major industries that use steel and steel products, including the construction, automotive, agricultural, oil and gas, transportation and infrastructure industries.
11. 3M Company
- Annual dividend: $5.88
- Oct. 9, 2020 price: $169.30
- Dividend yield: 3.47%
A sprawling multinational conglomerate, 3M produces more than 60,000 products under several different brands. The company’s offerings include everything from adhesives and filters to aircraft maintenance supplies and dental equipment.
Leggett & Platt Inc.
- Annual dividend: $1.60
- Oct. 9, 2020 price: $44.94
- Dividend yield: 3.56%
Leggett & Platt designs and manufactures a wide range of products and components that are common to homes and vehicles, including bedding, flooring, textile and furniture products.
Consolidated Edison Company of New York
- Annual dividend: $3.06
- Oct. 9, 2020 price: $82.55
- Dividend yield: 3.71%
ConEd operates a network of subsidiaries that together represent one of the biggest investor-owned energy providers in the country. It serves 10 million customers in New York City and Westchester County, New York.
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Vertex Pharmaceuticals
Specialty biotech stock Vertex Pharmaceuticals (NASDAQ:VRTX) is another company with all the tools necessary to make its shareholders rich.
Whereas most biotech stocks are losing money and in search of their first blockbuster drug, Vertex has made a habit of developing drugs that generate $1 billion or more in annual sales. More specifically, its success is tied to the multiple generations of gene-based therapies developed to treat cystic fibrosis (CF), a genetic disease characterized by thick mucus production that can obstruct the lungs and pancreas.
The company’s newest CF treatment, a combination therapy known as Trikafta, was approved by the U.S. Food and Drug Administration five months ahead of schedule and brought in almost $3.9 billion in its first year on pharmacy shelves. Targeting the most dominant CF mutation — a mutation roughly 90% of patients have — should allow Trikafta to eventually hit $6 billion in annual sales.
Vertex’s success in treating CF has turned it into a veritable cash cow. It ended March with over $6.9 billion in cash and cash equivalents, which’ll ultimately fund the nearly one dozen drugs being developed internally. Further, this cash could be used as an acquisition stepping stone. In terms of growth and value, Vertex is tough to beat in the biotech arena.
Amazon (NASDAQ: AMZN)
The coronavirus pandemic is a horrible thing. More than 219 million people around the world have gotten sick, with more than 4.55 million people losing their lives. There’s no downplaying the seriousness of this illness.
However, even the darkest cloud has a silver lining.
Online retail companies have become prime beneficiaries of the crisis. For months, consumers were told to stay at home, only leaving the confines of their homes in search of absolute necessities.
While there were already growing numbers of consumers shopping online, travel restrictions and temporary lockdowns led to a tidal wave of consumers who shifted from brick-and-mortar shopping to shopping on the web. Naturally Amazon.com, one of the most successful e-commerce websites in the world, seemed likely to benefit greatly from this trend — and benefit it has.
Since June 2020, the company’s stock price has climbed from around $2,545 per share to nearly $3,500 per share. With this kind of growth, the e-commerce pioneer has not only become one of the largest companies in the world, but one of the strongest growth stocks on the market today.
As a result of the growth, the stock trades with a pretty high valuation, with a price-to-earnings (P/E) ratio of around 60, compared to the e-commerce average of around 55. However, the high price-to-earnings ratio is offset by the outsize earnings and revenue growth seen from Amazon.com when compared to other e-commerce players.
Perhaps that’s why all 32 analysts covering the stock rate it a Buy according to TipRanks, which outlines an average price target of a whopping $4,202.39 per share.
All in all, with e-commerce dominance at a time when more and more people are shopping online, Amazon.com stock is one to watch closely.
Upwork (NASDAQ: UPWK)
Upwork is a tech play that’s focused on connecting contractors and those in need of contract work in the gig economy. Those who need articles written, graphics created, websites built, voiceovers added to videos, and a long list of other services will find talented experts in these crafts on the company’s website.
Of course, Upwork needs to make money in the process, and it makes plenty. In order to use the platform, freelancers must agree to the following fee schedule:
- Freelancers pay 20% of their billings to the company for the first $500 paid by a new customer.
- From $500.01 to $10,000 in billings of the customer, the platform charges a fee equal to 10% of billings.
- Finally, for all billings of a single customer with total billings of $10,000.01 or more, the company takes a 5% cut.
Prior to the coronavirus, the gig economy was already taking off. Consumers who have dreamed of working from home finally had a way to do so. Then, as the world shut down, the gig economy boomed.
Businesses deemed to be nonessential were forced to close their doors. This left many workers without a job and standing in unemployment lines of record length. Many of these displaced workers began looking for work-from-home opportunities, leading to a flood of demand for Upwork and its competitors. Moreover, this increased demand is likely to continue.
There have also been major changes for employers. Employers now have access to talent around the world, not just in close proximity to the office. What’s more, companies are finding that not only do workers prefer to work remotely, but they’re more effective when they do, according to Business News Daily. COVID-19 led countless companies to realize this, many of which say they’ll never bring employees back into the office, according to CNN.
Analysts absolutely love this stock because of the growing work-from-home trend and Upwork’s ability to capitalize on it, demonstrated by its significant revenue and earnings growth. According to TipRanks, four analysts cover the stock, all of whom rate it a Buy. Price targets range from $57 and $76 per share, averaging out to $67.50 and suggesting the potential for nearly 50% gains compared to current levels. Granted, you shouldn’t blindly follow Wall Street analysts, but these ratings are encouraging.
The bottom line here is simple. Upwork has seen tremendous growth already, and considering the flourishing of the gig economy and the trend toward remote work, that growth is likely to continue. As a result, the stock is one to pay close attention to.
Conclusion
Many stocks in BSE & NSE can make you a millionaire in 5 years. Have a look at the companies which reached their peak again, or at peak price ever. Many such companies can give you 2x to 3x returns.
If you’re interested in stocks and stock trading, there’s a lot to consider.