A five-bagger in only five years? Any investor would love to buy such a stock. Fortunes can be made quickly with those kinds of turbocharged performers.
They’re not easy to find, but they do exist. Here are three stocks that I think could realistically turn $1,000 into $5,000 by 2030.
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Moderna‘s (NASDAQ: MRNA) market cap currently stands at around $14.8 billion. To become a five-bagger, the messenger RNA (mRNA) pioneer would need to grow its market cap to $74 billion. The good news for Moderna is that it’s already proven it can reach that level.
Granted, Moderna’s gravy days occurred during the worst of the COVID-19 pandemic as sales for its Spikevax vaccine skyrocketed. Since the pandemic ended, the biotech stock has performed dismally due to Spikevax’s rapidly declining sales.
However, the growth prospects for Moderna arguably look better than ever. The company now has another approved product, respiratory syncytial virus vaccine mResvia, that holds blockbuster potential. Moderna intends to win 10 additional product approvals through 2027. I think that goal should be attainable, considering the drugmaker’s pipeline features nine late-stage programs with several others not too far away from advancing into phase 3 clinical testing.
Because of Moderna’s cash position of nearly $6.9 billion and relatively low debt of $1.36 billion, its enterprise value is only around $9.3 billion. This biotech stock appears to be a bargain with so many promising pipeline programs.
To understand how Summit Therapeutics (NASDAQ: SMMT) could turn an investment of $1,000 into $5,000 by 2030, we need to first look at Merck. No, Summit and Merck don’t have a partnership. Merck hasn’t expressed any interest in acquiring the small drugmaker, either.
The reason why I mention Merck is that its cancer immunotherapy, Keytruda, ranked as the world’s best-selling drug last year with sales of $25 billion. And Summit’s lead pipeline candidate, ivonescimab, thumped Keytruda in a head-to-head late-stage clinical trial targeting non-small cell lung cancer (NSLCL). It marked the first time Keytruda had been beaten in a head-to-head clinical study.
It’s important to note that the late-stage study was conducted by Summit’s partner, Akeso, in China. The positive results won’t help win approval for ivonescimab in the U.S. However, Summit has its own U.S. phase 3 studies underway evaluating the drug in combination with chemotherapy. Results for one of those studies featuring ivonescimab and chemo as a second-line treatment for NSCLC are expected in mid-2025.
Summit’s market cap is only around $12.5 billion right now. The average biotech stocks trades at roughly seven times sales. If Summit wins approval for ivonescimab and its drug can rake in annual sales of only $8.9 billion or so, it should easily become a five-bagger.
I’ll admit right off the bat that it could be a stretch for Uber Technologies (NYSE: UBER) to deliver a 5x gain by 2030. The ride-hailing company’s market cap already stands close to $129 billion. Uber’s growth over the last five years, although strong, hasn’t been anywhere close to the level needed to achieve our lofty goal.
But is it possible for Uber to become a five-bagger over the next five years or so? I think so — if Ark Invest CEO Cathie Wood’s prediction about the autonomous ride-hailing market growth comes true. Wood and her team at Ark Invest estimate the “robotaxi” market will reach $11 trillion by 2030.
To be sure, Wood thinks Tesla will be the biggest winner in this potentially huge market. However, unlike Tesla, Uber already has an operational robotaxi service. The company partners with multiple self-driving car technology leaders, including Avride, Alphabet‘s Waymo, and WeRide.
If Wood’s $11 trillion number is even in the ballpark of the size of the robotaxi market in 2030, Uber won’t need a large market share to be worth five times more than it is today. Maybe she’ll be proven right.
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $334,266!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,976!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $479,727!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of December 16, 2024
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Merck, Summit Therapeutics, Tesla, and Uber Technologies. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.
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