A $10,000 Investment In These 3 Stocks Could Be Worth More than $100,000 In 5 Years

Finding stocks that could potentially 10x in value is sort of like chasing the rainbow to find the pot of gold at the end. Few companies can achieve such impressive returns, even over a time span that’s longer than five years. But for investors looking for companies that could be the next big thing, the good news is that there are certain stocks which are rocking and rolling in this current (depressed) macro backdrop that can still outperform if the current environment remains relatively stagnant.

Of course, one would hope that the overall trade policies and political backdrop may become more favorable toward equity investors in the years to come. If that’s the case, it’s entirely possible that specific companies outside this list could outperform as well.

But based on what we know now, I thought I’d highlight three companies I think have the potential to provide the 10x returns growth investors are after. Again, these are potential returns, but they’re based on some strong restoring trends and other key catalysts I think investors don’t want to sleep on right now.

MP Materials (MP)

One stock that’s absolutely skyrocketed this year is MP Materials (NYSE:MP). With most major indices trading around bear market territory, seeing MP stock up nearly 70% may lead to warning signs for some investors. And on a fundamental basis, there are certainly reasons why this company’s valuation may be called into question, given that MP is still producing relatively hefty losses.

That said, the company’s status as a leading U.S. rare earth producer has positioned the company well to benefit from the existing trade policy put in place by the Trump administration. If the U.S. government continues to take the long-term view that more rare earth materials will not only need to be discovered and pulled out of the ground domestically, but refined at home as well, then MP Materials is the company to look to as a way to capitalize on this shift.

Investors do appear to have gotten ahead of this trend to a large degree, with the company’s recent surge signaling that many in the market believe there’s much more upside ahead with this name. If the geopolitical winds continue to shift toward more isolationism, this is a potential beneficiary I think investors will want to keep on their radar (particularly on any dips moving forward). 

BYD Co. (BYDDF)

Another company that’s bucked the trend of losses thus far this year (and been a very consistent outperformer in recent years) is BYD Co. (OTCMKTS:BYDDF). This Chinese EV maker has seen it share price surge this year, as domestic sales in the company’s home market of China continue to soar. 

With Tesla seemingly losing steam in this increasingly competitive market, and trade war concerns ratcheting up, BYD looks to be a big winner in the Chinese and Asian markets. As more consumers around the world continue to shift toward electric vehicle purchases and away from internal combustion engine options, BYD could continue to grow its market share in the highest-growth markets around the world.

Now, Tesla is likely to retain a very solid foothold in the affluent U.S. market. But I do think that this recent policy shift from the U.S. government could ultimately benefit BYD, and this integrated EV maker’s impressive technology and leadership in other sectors such as autonomous driving could position the company well for much higher growth than its U.S. counterpart (which has seen similar surges in the past). 

Rigetti Computing

Perhaps the most speculative pick on this list, Rigetti Computing (NASDAQ:RGTI) is one company I think most investors need to keep a close eye on. Unlike the other two names on this list, RGTI stock is actually down roughly 45% year-to-date at the time of writing. However, this is also a company that’s at the forefront of what could be one of the most disruptive technological revolutions out there, outside of artificial intelligence.

As a key player in the quantum computing space, Rigetti has benefited from a surge in interest around companies that are developing quantum computing technologies that could potentially be commercialized in short order. That upside potential is underscored by the fact that this stock is still up more than 600% over the past year (after the aforementioned decline we’ve seen on a year-to-date basis). In other words, this is a company that’s already proven it can be a 10-bagger in short order.

Notably, Rigetti still trades at a valuation of around $2.4 billion. So, if the market receives some sort of indication that growth could accelerate from here, it’s entirely feasible to see this stock achieve a valuation closer to $25 billion. We’ve seen such valuation bumps in very short order in the AI world, on mere mentions of some novel integration.

This is certainly the highest risk and most speculative idea on my radar right now, but that doesn’t mean the market will disagree. Ignore Rigetti at your own peril.

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