Several promising trends are aligning perfectly for these three companies, presenting a compelling opportunity.
Spotting the market’s highest-growth prospects at any time isn’t particularly challenging. What is challenging, however, is identifying stocks with the potential to multiply fivefold in value over the next five years. For this transformation to happen, the companies behind these stocks need to be executing their strategies perfectly within an industry destined for enduring growth. A short-term dip in stock prices can be an advantage, too, but that’s not an easy feat to accomplish.
Yet, there are a few such standout stocks ready for keen investors. Let’s explore three stocks that could potentially turn a $1,000 investment into $5,000 by 2030.
### Amazon
Amazon, recognized as the giant of the e-commerce sector in the western hemisphere, holds a commanding 40% share of North America’s market, according to data from Digital Commerce 360. Additionally, its international division isn’t lagging either, with a 12% revenue growth in the third quarter of last year, moving further into profitability—a trend that seems likely to continue. While Amazon’s North American operations have already been profitable, they continue to grow operating income above average rates.
However, it’s not just these factors that make Amazon an exciting prospect. The real growth engine here is Amazon Web Services (AWS), the company’s cloud computing arm. Last quarter, AWS saw revenue growth of 19%, contributing more than 60% to Amazon’s operating income—a number that continues to rise rapidly.
This focus on cloud computing is significant, given that the market has substantial growth potential ahead. According to Mordor Intelligence, the global cloud computing market is projected to grow at an annualized rate of over 16% through 2030.
The expansion of Amazon’s e-commerce reach supports this optimistic outlook, yet investors seem to underestimate its full potential.
### Iovance Biotherapeutics
For those who invested in Iovance Biotherapeutics during 2019 and 2020, it’s been a rough ride. The stock soared, only to peak in January 2021 at $54.21, before plummeting to a 2023 low of $3.21. Even now, trading around $6.00, the price remains a shadow of its former self.
However, this drastic decline might present a prime buying opportunity, highlighted by the oft-unreliable timing of collective investor sentiment.
First, a quick overview: Iovance Biotherapeutics is a biopharmaceutical company, and its flagship product is a tumor-infiltrating lymphocyte (TIL) therapy named lifileucel, which recently secured its first FDA approval for melanoma treatment in February 2024. Though expected, this was a pivotal achievement for a company yet to generate commercial revenue.
The marketplace response was positive, with the company generating nearly $60 million from this novel, albeit pricey, drug in the three months ending September 2024.
Yet, despite these successes, investor enthusiasm hasn’t held up.
What’s happening here?
This scenario is typical for small biopharma firms focused on breakthrough drugs. The initial investor excitement waned between 2019 and the actual product approval as the market often anticipates such events well in advance.
Ironically, Iovance Biotherapeutics’ potential has never been more promising. Research from Credence indicates that the burgeoning tumor-infiltrating lymphocyte market could expand at an annual rate of nearly 40% through 2032, reaching a size of approximately $2.5 billion. Given Iovance’s pioneering efforts in this field, investors would be wise to recognize both the potential and tangible growth in its future.
### Roku
Lastly, Roku stands out as another strong candidate for transforming a $1,000 investment into $5,000 by 2030.
Much like Iovance, Roku shares surged in the early days of the COVID-19 pandemic. As people were confined to their homes, the demand for streaming devices skyrocketed, benefiting Roku enormously.
However, this initial surge was unsustainable. By 2021 and 2022, the market recalibrated, realizing that Roku’s elevated valuation didn’t reflect reality, leading to an 80% drop in its share price—a stall that persists today. The company’s ongoing lack of profitability hasn’t helped matters, either.
Yet, when we delve deeper into Roku’s operations, there’s much to consider. Despite recent setbacks, Roku boasts a 37% share of North America’s connected-television device market, markedly ahead of its nearest competitor with only 17%, according to Pixalate.
Although international performance hasn’t reached the same heights, it’s primarily because Roku is wisely focusing on its robust North American market. This region holds a significant chunk of the video streaming/on-demand video market, which Global Markets Insights estimates will grow by 11% per year through 2032, with North America leading the charge.
Importantly, Roku’s story extends beyond these figures.
After swinging briefly to profitability in 2021 due to pandemic conditions, Roku is on track to return to profitability next year as it grows its revenue and refines its strategies. While analysts predict only modest per-share earnings of $0.36 by 2026, this is merely the beginning of a longer upward trend. Growth in both revenue and income is expected to continue well into the future.
Investors might see the stock rally even before Roku attains full profitability, given the trajectory it’s currently on.
