For many investors, the new year got off to a bad start. Growth stock depends on both Nasdaq Compound and broad-based S&P500 suffered its biggest correction since the pandemic-induced crash of March 2020.
While big declines in benchmarks can be nerve-wracking in the short term, they historically provide a great opportunity to invest in game-changing companies at a discount. This is especially true for investors who plan to hold their holdings for many years or even a decade.
If you have dreamed of becoming a millionaire, the following five unstoppable actions can help you achieve your goal. These innovative companies have all the tools necessary to turn a $150,000 investment into $1 million by 2032, or maybe sooner.
The first stock that could return 567% (or more) over the next decade and make people millionaires with an investment of $150,000 is the cloud-based lending platform. Assets received (NASDAQ: UPST).
The traditional lending process, at least for personal loans, can be slow, arduous and costly, both for the banks and for the customer trying to take out a loan. Rather than relying on this one-size-fits-all lending approach, Upstart’s platform relies on artificial intelligence (AI) and machine learning to more accurately determine customer creditworthiness. About two-thirds of requests handled by Upstart led to instant approvals. This means less hassle for customers and reduced costs for Upstart’s banking partners.
At the moment, Upstart is primarily focused on personal loans. But its acquisition of Prodigy Software, which closed last year, gives it a foothold to oversee auto loan originations. The market value of granting car loans is 8.3 times that of personal loans. In other words, Upstart is only scratching the surface when it comes to how its cloud-based platform can help lenders and consumers.
Another thing to note about Upstart is that over 90% of its revenue comes from the fees it collects from banks and service centers. Since it has no direct credit exposure, a rise in interest rates and/or a contraction in the economy will not negatively affect its business.
Don’t forget small cap stocks when looking for companies that can multiply your initial investment by 6 times. Cloud-based programmatic advertising company PubMatic (NASDAQ: PUBM) is the perfect example of a small cap company with a huge track.
Programmatic advertising describes the process of using machine learning software to manage the buying, selling and optimization of advertisements. PubMatic is a sales provider, which simply means that it aims to sell digital display advertising space for its customers, the publishers. The company’s platform is tasked with making the distinction between generating as much revenue as possible for display space and putting relevant content in front of users. If this satisfies advertisers, it often means that PubMatic customers see their pricing power increase over time.
The beauty of PubMatic’s operating model is that we are seeing a steady shift of advertising dollars from print to digital channels. While global digital ad spend is expected to grow at 10% per year through the middle of the decade, PubMatic’s revenue has grown at many multiples of that rate for years. The company has posted four consecutive quarters of organic growth of at least 50%, driven primarily by increased demand for programmatic advertising in connected TV and over-the-top settings.
PubMatic seems like a surefire winner for patient investors.
Another unstoppable stock with the ability to turn $150,000 into $1 million by 2032, or possibly sooner, is telemedicine kingpin. Teladoc Health (NYSE: TDOC).
The big knock against Teladoc has long been that it was “just a pandemic game”. Although it was in the right place, at the right time, when the pandemic hit, there is clear evidence that telehealth is a movement that had legs long before the arrival of the coronavirus pandemic. For example, Teladoc averaged 74% annual sales growth in the six years to 2020. That’s no coincidence. This is representative of a shift in the way personalized care is delivered.
The advantage of telehealth services is that they benefit all parties along the healthcare treatment chain. Virtual visits are more convenient for patients and can allow doctors to better monitor people with chronic conditions, which improves patient outcomes. Better prospects for patients should mean less money in the pockets of health insurers. This suggests that insurers will push for increased use of telehealth in the wake of the pandemic.
Teladoc’s telehealth platform, paired with Livongo Health’s AI-powered service to help chronic care members lead healthier lives (Teladoc acquired Livongo in Q4 2020), represents the future of personalized patient care. United States
Planet 13 farms
If you prefer low-key businesses, marijuana stock Planet 13 farms (OTC: PLNH.F) delivers the growth and differentiation needed to turn a $150,000 investment into $1 million by 2032.
Most US multistate operators have chosen to open outlets or grow farms in many legalized states. Planet 13, on the other hand, has only two active dispensaries. But these aren’t your ordinary pan stores. The Las Vegas SuperStore spans 112,000 square feet and includes a coffee shop, event center, and consumer processing center. Meanwhile, the SuperStore in Orange County, California spans 55,000 square feet, 30% of which is devoted to selling space. Planet 13’s stores are just as focused on the cannabis lover experience as they are on sales.
Besides the sheer size of these SuperStores, Planet 13 relies on technology, personalization and branding to drive results. For example, the Las Vegas SuperStore has self-paid kiosks for customers who know what they want. The store also provides personal assistants to guide shoppers through their experience. But it’s the introduction of proprietary brands that could really boost margins.
With expansion plans in Chicago, Miami and Orlando, Planet 13’s sales growth won’t be slowing down any time soon.
One last unstoppable stock that can turn $150,000 into $1 million in 10 years or less is pet health insurer Trupanion (NASDAQ: TRUP).
Next to food and utilities, there is arguably no industry or sector more recession-proof than pets. According to the American Pet Products Association, 70 percent of U.S. households now own a pet, up from 56 percent in 1988. Additionally, it’s been at least a quarter century since year-over-year spending on pets pets have declined in the United States. No matter what kind of economic disaster hits consumers, pet owners continue to open their wallets more to their furry family members.
What makes Trupanion so intriguing is its potential pool of customers. Only about 1% of pets in the United States are insured, and 2% in Canada. Trupanion estimates that a 25% penetration rate in these markets, equivalent to the penetration rate for pet insurance in the UK, would equate to a potential market of $34.1 billion. It’s huge, and it seems to get bigger every year.
In addition to surpassing 1.1 million registered pets in the September quarter, Trupanion brings two decades of industry relationships, as well as its proprietary software that enables payments at clinics to the time of service. It has clear advantages in the pet insurance business and looks poised for sustained double-digit growth throughout the decade.
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Sean Williams owns Teladoc Health. The Motley Fool owns and recommends Planet 13 Holdings, PubMatic, Teladoc Health, Trupanion and Upstart Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.