In this article, we discuss the 15 stocks that will 10x in 5 years according to analysts. To skip the details around the recent market conditions, go directly to the 5 Stocks That Will 10x in 5 Years According to the Analysts.
After a tremendous first quarter, the S&P 500 saw around a 5.5% correction by April 19 from record highs of March 28. However, a 5% to 10% correction was already expected by several experts, including Dr. Ed Yardeni of Yardeni Research. As of May 10, the S&P 500 is at 5,222.68 points, which is just approximately 0.6% below its record highs. The numbers show that the market is performing well despite the Fed’s indecision on rate cuts. At the latest Fed press conference on May 1, Chairman Jerome Powell said that the Fed needs a little longer to gain confidence in its decision to cut rates, but did not specify any particular period. On the upside, the Fed is not showing any indication of raising the rates.
Market Confidence Soars During Earnings Season
While many were expecting an up to 10% correction in the S&P 500, the latest earnings season kept the market going and the index is again near its all-time highs. President of Yardeni Research, Ed Yardeni was one of the experts who was expecting an up to 10% correction in the market, but he has been positive about the market all along. For more details, go to 10 Best Soaps and Cleaning Materials Stocks to Buy.
In a CNBC interview on May 10, Dr. Yardeni said that a 10% correction is highly unlikely now and sees the market moving higher. He believes that the economy is strong and inflation is going to continue to moderate and expects that earnings will reach new record highs in upcoming quarters. Ed Yardeni showed a lot of confidence in equity markets and is expecting a $250 per share profit for the S&P 500 in the current year compared to $222 in 2023. For 2025 and 2026, Yardeni’s firm sees profits of $270 and $300 per share, respectively.
Signs of Market Broadening
Mega-cap tech has been dominating the market for over a year, and other sectors have also picked up pace in 2024. As of May 10, Utilities Select Sector SPDR Fund (NYSEArca:XLU) is up 10.93% year-to-date, Financial Select Sector SPDR Fund (NYSEArca:XLF) is up 10.8%, and Energy Select Sector SPDR Fund (NYSEArca:XLE) is up 10.73%. The sectors seem to be on par with the technology sector as well as the broader market. Technology Select Sector SPDR Fund (NYSEArca:XLK) has gained nearly 10%, and the S&P 500 is 10.1% higher on a year-to-date basis, as of May 10. The Middle-East conflict has slightly pushed oil prices higher and the average price of WTI Crude has been up from $77.7 per barrel in January to $88 in April.
Nevertheless, Dr. Yardeni seemed most enthusiastic about the utilities sector. He noted that AI brings a huge demand in data centers, in turn benefiting the utilities sector as electricity demand will increase proportionally. The interest rates had an adverse effect on the utilities sector, especially in the renewable energy segment last year. However, momentum has been seen in the sector recently. The utilities company, GE Vernova Inc. (NYSE:GEV) spun off from General Electric Company (NYSE:GE) on April 2, and the stock is already up 19.5%, as of May 10. You can also check out some of the best new stocks according to analysts.
Among the financial sector, analysts are quite bullish on Prudential plc (NYSE:PUK) and the bitcoin mining company, Riot Platforms, Inc. (NASDAQ:RIOT). According to the Wall Street Journal, Riot Platforms, Inc. (NASDAQ:RIOT) has been covered by 12 analysts with 11 Buy and 1 Overweight ratings. The average price target of $18.22 represents a 98% upside to the company stock price on May 10. As of May 7, Needham analyst, John Todaro maintains a Buy rating on the company shares with a $15 price target, as reported by The Fly. Despite temporary setbacks such as softer Engineering and Hosting revenues and elevated general and administrative expenses, Todaro is optimistic about the company’s future. He noted that Riot Platforms, Inc.’s (NASDAQ:RIOT) higher Engineering costs were attributed to supply challenges, which the management expects to resolve by the third quarter of this year. The company is one of the top stocks that will 10x in 5 years. The CEO of the company, Jason Les made the following comments at its Q1 2024 earnings call:
“Riot’s primary strategic focus has been on developing a leading vertically integrated Bitcoin mining company. Built on the three key pillars of developing and owning operations of significant scale; being a low cost producer of Bitcoin; and building a balance sheet of strength. By focusing on a vertically integrated strategy, we are best able to build these pillars. Over the past three years, we have been focused on developing this strategy at scale. This began with the acquisition of our Rockdale facility, its development and operations teams, and low-cost fixed-power contracts.
The strategy continued with the acquisition of the ESS Metron and the introduction of our engineering segment, which helps control the key supply bottleneck for electrical equipment and building out Bitcoin mining infrastructure. And finally, the development of our Corsicana facility has broadened our portfolio of access to power capacity and purpose-built Bitcoin mining facilities. The benefits of this strategy are on display today. And as a result, we see other miners in the space moving towards a similar strategy. Since Riot has developed this strategy most fully and at scale we are able to build out facilities like Corsicana further, while others who have not already ordered key pieces of electrical equipment face 18 plus months of supply chain constraints.”
Prudential plc (NYSE:PUK) is an insurance company that has been covered by 22 analysts with 19 rating the company stock a Buy-equivalent. As of May 10, the average analyst price target of $31.26 shows a nearly 55.3% upside from current levels. At Prudential plc’s (NYSE:PUK) full-year 2023 earnings call, CEO Anil Wadhwani showed confidence in the company’s international business. Here is what he said:
“…the regulatory guidance of Q3 ratified some of the steps, that we took in terms of repricing our 3.5% guaranteed product. Our agency grew by 25%. And on account of the steps that we took to reposition our bank assurance product mix as we transition to 2024, we feel optimistic about the growth prospects in China. And I’m sure we will talk about that as we as we go along. In ASEAN, again, strong performances by Malaysia delighted with the sales and the new business profit growth. Indonesia, four quarters — four consecutive quarters of new business profit growth, early signs of the transformation work that we are leading in Indonesia. And Singapore, clearly we have a quality, quality franchise there, multi-distribution channel, and it underscored the strong rebound that we witnessed in Singapore in the second half of last year.”
Moving on from 2024 to longer-term growth, some of the stocks that will 10x in 5 years include Lithium Americas Corp. (NYSE:LAC), Riot Platforms, Inc. (NASDAQ:RIOT), and Rocket Lab USA, Inc. (NASDAQ:RKLB).
15 Stocks That Will 10x in 5 Years According to the Analysts
Our Methodology
For this article, we made a list of 25 stocks with the potential to grow 10x in 5 years from different financial media websites like Investor Place, Seeking Alpha, and Nasdaq.com. We narrowed down our list to 15 stocks with substantial upside potential in the next 12 months according to analysts. The analyst sentiment was taken from the Wall Street Journal and TipRanks, and the stocks are listed in ascending order of their average analyst price target upside.
Hedge fund sentiment around each stock has also been added. The hedge fund data was taken from Insider Monkey’s database of 933 elite hedge funds as of the fourth quarter of 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
15 Stocks That Will 10x in 5 Years According to the Analysts
15. MINISO Group Holding Limited (NYSE:MNSO)
Number of Hedge Fund Holders: 18
Average Analyst Price Target Upside: 12.72%
MINISO Group Holding Limited (NYSE:MNSO) is a China-based investment holding that is involved in the retail and wholesale of lifestyle products and pop toy products. In Q4 of 2023, 18 hedge funds had stakes in MINISO Group Holding Limited (NYSE:MNSO), with total positions worth $253.828 million. As of December 31, 2023, Keywise Capital Management is the most dominant shareholder in the company and has a stake worth $77.3 million.
On April 30, JPMorgan analyst Kevin Yin initiated coverage of MINISO Group Holding Limited (NYSE:MNSO) with an Overweight rating and a $30 price target.
As of May 10, MINISO Group Holding Limited (NYSE:MNSO) has received Buy ratings from 3 Wall Street analysts. The average price target of $27.83 implies an upside of 12.72% from the present levels.
MINISO Group Holding Limited (NYSE:MNSO) is among the stocks that will 10x in 5 years according to analysts, along with Lithium Americas Corp. (NYSE:LAC), Riot Platforms, Inc. (NASDAQ:RIOT), and Rocket Lab USA, Inc. (NASDAQ:RKLB).
14. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 53
Average Analyst Price Target Upside: 13.73%
Coupang, Inc. (NYSE:CPNG) is an owner and operator of a retail business, mostly in South Korea via its mobile applications and Internet websites. The company works through Product Commerce and Developing Offerings segments. On May 7, Coupang, Inc. (NYSE:CPNG) announced first-quarter earnings with a non-GAAP EPS of $0.05. The revenue of $7.1 billion increased by 22.4% year-over-year and beat the estimates by $90 million.
Coupang, Inc. (NYSE:CPNG) has a consensus Buy rating among 17 analysts as of May 10, and its average price target of $25.59 represents an upside of 13.73% from the current levels.
Coupang, Inc. (NYSE:CPNG) was held by 53 hedge funds in the fourth quarter of 2023 and the stakes amounted to $3.69 billion. Maverick Capital is the top shareholder of the company and has a position worth $1.18 billion as of the fourth quarter of 2023.
Baron Fifth Avenue Growth Fund stated the following regarding Coupang, Inc. (NYSE:CPNG) in its fourth quarter 2023 investor letter:
“We also took advantage of stock price volatility and slightly added to several existing positions: The Korean e-commerce platform, Coupang, Inc. (NYSE:CPNG), whose stock corrected during the quarter following a miss on EBITDA margins, which we don’t view as structural. The company continues to gain market share while holding significant competitive advantages thanks to its robust delivery network.”
13. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 55
Average Analyst Price Target Upside: 21.1%
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that offers online sports betting and casino, daily fantasy sports, and other related products. 55 hedge funds had stakes in DraftKings Inc. (NASDAQ:DKNG) in Q4 of 2023 and the total stakes were worth $2.24 billion.
On May 2, DraftKings Inc. (NASDAQ:DKNG) reported Q1 earnings. The non-GAAP EPS beat the estimates by $0.14 at $0.03. The revenue jumped 53.2% year-over-year and surpassed the market consensus by $60 million at $1.18 billion.
As of May 10, 38 Wall Street analysts have covered DraftKings Inc. (NASDAQ:DKNG), and 29 keep Buy-equivalent ratings on the stock. The average price target of $52.4 has an upside of 21.1% from present levels. The company is 13th on our list of stocks that will 10x in 5 years according to analysts.
Baron Funds stated the following regarding DraftKings Inc. (NASDAQ:DKNG) in its fourth quarter 2023 investor letter:
“We added to our position in DraftKings Inc. (NASDAQ;DKNG), the leading mobile sportsbook and gaming operator in the U.S. While we lowered our estimates for the fourth quarter due to lower hold in the month of November, it is important to keep in mind that while hold can be volatile from quarter to quarter, the company continues to slowly increase hold over time (primarily because of a higher percentage of the handle being in higher hold “parlay” bets). We continue to be attracted to DraftKing’s dominant market share and the scale advantages that come with this.”
12. Amdocs Limited (NASDAQ:DOX)
Number of Hedge Fund Holders: 35
Average Analyst Price Target Upside: 22.25%
Amdocs Limited (NASDAQ:DOX) is a Missouri-based provider of software and services. The company’s customer network includes 600 content creators and over 350 communications and media providers. On May 9, BofA lowered the price target on Amdocs Limited (NASDAQ:DOX) to $100 from $105 and kept a Buy rating on the shares.
As of May 10, Amdocs Limited (NASDAQ:DOX) has Buy-equivalent ratings among 7 analysts, and its average price target of $101.75 implies an upside of 22.25% from present levels.
At a stake value of $849.088 million, 35 hedge funds held positions in Amdocs Limited (NASDAQ:DOX) in Q4 of 2023. As of December 31, 2023, Pzena Investment Management is the most significant shareholder in the company with a position worth $372.61 million.
11. MicroStrategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 16
Average Analyst Price Target Upside: 26.23%
MicroStrategy Incorporated (NASDAQ:MSTR) is a Virginia-based company that offers artificial intelligence-powered enterprise analytics software and services. In the fourth quarter of 2023, 16 hedge funds held positions in MicroStrategy Incorporated (NASDAQ:MSTR) and their stakes amounted to $66.93 million. It is the 11th company on our list of stocks that will 10x in 5 years according to analysts.
Based on 6 Wall Street analysts’ ratings as of May 10, the stock has a consensus Buy rating. The average price target of $1490.12 represents an upside of 26.23% from the current levels.
Miller Value Partners stated the following regarding MicroStrategy Incorporated (NASDAQ:MSTR) in its first quarter 2024 investor letter:
“MicroStrategy Incorporated (NASDAQ:MSTR) 0.75% 12/15/2025 was the top contributor during the quarter. Bitcoin performed very strongly in the quarter, gaining 68.9% in the period, while also posting a new all-time high of $73.8K. After ending 2023 with 190K bitcoin, MicroStrategy purchased another 24.2K bitcoin subsequent to reporting 4Q23 results, pushing the company’s holdings to 214.2K bitcoin as of 3/18/24.”
10. Gulfport Energy Corporation (NYSE:GPOR)
Number of Hedge Fund Holders: 34
Average Analyst Price Target Upside: 26.43%
Gulfport Energy Corporation (NYSE:GPOR) acquires, explores, develops, and produces natural gas, crude oil, and natural gas liquids in the U.S. The company’s main properties are located in Eastern Ohio and central Oklahoma.
Gulfport Energy Corporation (NYSE:GPOR) was part of 34 hedge funds’ portfolios in the fourth quarter of 2023 with a total stake value of $1.2 billion. As of Q4 of 2023, Silver Point Capital is the largest shareholder in the company and has a position worth $755.7 million.
As of May 10, 9 Wall Street analysts have covered Gulfport Energy Corporation (NYSE:GPOR), and 6 keep Buy-equivalent ratings on the stock. The average price target of $186.75 implies an upside of 26.43% from the present levels.
9. Immersion Corporation (NASDAQ:IMMR)
Number of Hedge Fund Holders: 13
Average Analyst Price Target Upside: 26.5%
Immersion Corporation (NASDAQ:IMMR) is a Florida-based company that creates, designs, develops, and licenses haptic technologies. 13 hedge funds held stakes in Immersion Corporation (NASDAQ:IMMR) in Q4 of 2023, with positions worth $24.688 million. Royce & Associates is the most prominent shareholder in the company and has a position worth $8.12 million, as of December 31, 2023.
On May 9, Immersion Corporation (NASDAQ:IMMR) announced Q1 earnings. The company reported total revenues of $43.8 million, up from $7.1 million in the first quarter of 2023. The GAAP net income was $0.59 per diluted share, compared to the GAAP net income of $0.25 per diluted share in Q1 of 2023.
As of May 10, Immersion Corporation (NASDAQ:IMMR) has received Buy-equivalent ratings from 2 Wall Street analysts. The average price target of $10.50 implies an upside of 26.5% from current levels. It is among the stocks that will 10x in 5 years according to analysts.
8. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
Number of Hedge Fund Holders: 21
Average Analyst Price Target Upside: 51.45%
Soleno Therapeutics, Inc. (NASDAQ:SLNO), previously known as Capnia, Inc., develops and commercializes novel therapeutics for the treatment of rare diseases. Soleno Therapeutics, Inc. (NASDAQ:SLNO) has received Buy-equivalent ratings from 7 Wall Street analysts, as of May 10. The average price target of $68.14 has an upside of 51.45% from the present levels.
On May 10, Baird initiated Soleno Therapeutics (NASDAQ:SLNO) with a Buy rating and a $70 price target.
In the fourth quarter of 2023, 21 hedge funds had investments in Soleno Therapeutics, Inc. (NASDAQ:SLNO), and the total stakes amounted to $872.026 million. Vivo Capital is the biggest shareholder in the company, as of December 31, 2023. In the quarter, the firm increased its stake by 163% to 8.4 million shares worth $338.828 million.
7. Joby Aviation, Inc. (NYSE:JOBY)
Number of Hedge Fund Holders: 23
Average Analyst Price Target Upside: 58.1%
Joby Aviation, Inc. (NYSE:JOBY) is a vertically integrated air mobility company that constructs an electric vertical takeoff and landing aircraft built to offer air transportation as a service. Joby Aviation, Inc. (NYSE:JOBY) was part of 23 hedge funds’ portfolios in Q4 of 2023 with a total stake value of $95.706 million.
3 out of 6 Wall Street analysts have Buy ratings on Joby Aviation, Inc.’s (NYSE:JOBY) stock, as of May 10. The average price target of $8.00 represents an upside of 58.1% from the current levels. The company is seventh on our list of stocks that will 10x in 5 years according to analysts.
On May 7, Joby Aviation, Inc. (NYSE:JOBY) announced first-quarter earnings. The GAAP EPS was -$0.14, which beat the estimates by $0.04. At the end of the quarter, the company reported cash and cash equivalents of $110.54 million.
6. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 31
Average Analyst Price Target Upside: 81.45%
Li Auto Inc. (NASDAQ:LI) is a China-based company that is involved in the design, development, manufacturing, and sale of premium smart electric vehicles. Li Auto Inc. (NASDAQ:LI) has a consensus Strong Buy rating among 12 analysts, as of May 10, and its average price target of $48.43 has an upside of 81.45% from the current levels.
Li Auto Inc.’s (NASDAQ:LI) sales grew by 731.07% in the last 5 years. Additionally, the company has recorded a trailing twelve-month EPS growth of 637.58% and a trailing twelve-month sales growth of 160.66%.
In Q4 of 2023, 31 hedge funds had investments in Li Auto Inc. (NASDAQ:LI), and the stakes amounted to $1.15 billion. Two Sigma Advisors is the top investor in the company as of Q4 of 2023 and has a position worth $228.84 million.
Li Auto Inc. (NASDAQ:LI) joins Lithium Americas Corp. (NYSE:LAC), Riot Platforms, Inc. (NASDAQ:RIOT), and Rocket Lab USA, Inc. (NASDAQ:RKLB) on our list of stocks that will 10x in 5 years according to analysts.
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Disclosure. None. 15 Stocks That Will 10x in 5 Years According to the Analysts is originally published on Insider Monkey.
