From X to Y by when? That’s the best way to establish a goal. Define where you are now (X), where you want to be (Y), and the desired time period for achieving the goal. The challenge with investing goals using that formula, though, is finding stocks that can actually make it happen.
The good news is that there are some stocks with tremendous growth prospects. You can potentially achieve even aggressive investing goals with these three unstoppable stocks that could realistically turn $200,000 into $1 million by 2030.
If valuation is your key consideration when buying a stock, you’ll probably immediately cross Fiverr (NYSE:FVRR) off the list. Shares of the freelancing-platform provider trade at a whopping 1,670 times expected earnings.
However, Fiverr is actually a much better bargain than you might think at first glance. That’s because the stock’s forward earnings multiple doesn’t reflect the company’s prospects over this decade.
Fiverr’s addressable market totals around $115 billion per year in the U.S. alone. But the company is also expanding aggressively into international markets, as well. It won’t have to grab a large share of the global market to deliver a five times return by 2030.
The company is making solid progress in increasing its market share. It posted 60% year-over-year revenue growth in the second quarter. This momentum should continue with the recent launch of a seller loyalty program and an expansion of the Promoted Gigs product that allows sellers to advertise their freelancing jobs.
2. Innovative Industrial Properties
An investment in Innovative Industrial Properties (NYSE:IIPR) would have delivered a return of more than 11 times over the last five years. The stock has a good chance of turning $200,000 into at least $1 million over the next nine years by repeating exactly what it’s been doing.
IIP is a real estate investment trust (REIT) that focuses on the regulated U.S. cannabis industry. It specializes in sale-leaseback transactions where cannabis operators sell their properties. IIP then leases the properties back to the operators.
As of Oct. 1, 2021, IIP owned 75 properties in 19 states. The company has ample room to grow just by expanding in those states, which include eight of the top 10 biggest potential markets in the U.S.
IIP also has growth opportunities in additional states. There are currently another 17 states where medical and/or recreational cannabis is legal.
Matterport (NASDAQ:MTTR) is off to a great start after going public through a merger with a special purpose acquisition company (SPAC) in July. The stock is already up more than 35%. That should just be the start of even bigger gains over the next few years.
The company is the leader in spatial data — creating and managing 3D digital twins of physical spaces. Matterport has 5.6 million spaces under management, which is 100 times more than the rest of the market combined.
Around 13% of the Fortune 1000 are in what Matterport calls its “freemium flywheel.” The company allows subscribers to use a free version of its platform at first. Many of them then convert to paying customers.
Matterport estimates its total addressable market is $240 billion per year. If the company only penetrates 5% of that market, its annual revenue will grow close to $12 billion. With a current market cap below $5 billion, it’s easy to see how Matterport could deliver a five times gain by 2030.
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.