On April 25, Kari Firestone, Aureus Asset Management executive chairman and co-founder, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends and express how this is a reasonable place for long-term investors to enter the market. Despite persistent concerns about a recession coming from tariffs, Firestone thinks that corporate earnings have generally exceeded expectations. The strong performance of major tech companies has been a key driver behind the market’s recent gains, such as those in the MAG7. Elaborating on the significance of these tech giants, Firestone also underscored that the top 2 companies in the S&P 500, regardless of which they are, match the market value of the bottom 300 companies in the index. This concentration means that these leading firms are fundamental to the US economy’s progress.
The conversation then addressed the impact of proposed FDA budget cuts on innovation for biotech companies. Firestone agreed that such cuts could slow down the approval process for new products and drug manufacturing, and she advised against reducing the FDA’s budget. However, she believes that the market has already priced in these risks. She compared the situation to previous market overreactions, such as the 32% drop during the early COVID-19 period, which was followed by a rapid recovery.
Firestone also concluded that the market is now fairly valued. Some sectors offer attractive opportunities due to recent price declines. She assessed the overall market valuation in light of tariff uncertainties and the recent rebound from a 20% drop to a current decline of about 10.5%. She explained that the market’s price-to-earnings multiple has decreased from 22.5x next year’s earnings to 18.5x, assuming no severe recession. She’s confident that the market is unlikely to end the year lower than current levels and recommends that long-term investors enter the market at this stage. Firestone believes that the market has partially priced in the impact of tariffs. She estimated that a 5% to 10% tariff is reflected in current prices. While a full-blown recession may not be entirely priced in, a slowdown likely is.
That being said, we’re here with a list of the 30 stocks that should double in 3 years.
A trader on the floor of the stock exchange, capturing the energy that powers the market.
Our Methodology
We sifted through financial media reports and Reddit threads to compile a list of the top 30 stocks that should double in 3 years. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
30 Stocks That Should Double in 3 Years
30. Sezzle Inc. (NASDAQ:SEZL)
Number of Hedge Fund Holders: 19
Sezzle Inc. (NASDAQ:SEZL) is a technology-enabled payments company that offers solutions in-store and at online retail stores. It also provides the Sezzle Platform, which offers a payment solution for consumers that extends credit at the point-of-sale. This allows consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time.
The company’s On-Demand product is an offering launched in Q4 2024 through a banking partnership with WebBank. This innovative Pay-in-4 solution distinguishes itself by allowing consumers to use Buy Now Pay Later capabilities virtually anywhere Visa is accepted. This convenience is even extended to customers without a Sezzle Premium or Anywhere subscription.
The performance of On-Demand is reflected in the surge of Monthly On-Demand & Subscriber Users, which reached 707,000 by the close of December 2024. This represents a 130% increase year-over-year and an addition of 178,000 users sequentially. Furthermore, Sezzle Inc. (NASDAQ:SEZL) successfully onboarded 3 substantial enterprise-level merchants (Backcountry, Bealls, and Rural King) in the same quarter, with GMVs ranging from ~$700 million to over $1.5 billion.
29. Opendoor Technologies Inc. (NASDAQ:OPEN)
Number of Hedge Fund Holders: 20
Opendoor Technologies Inc. (NASDAQ:OPEN) operates a digital platform for residential real estate transactions in the US. It also provides real estate brokerage, title insurance & settlement, escrow services, property & casualty insurance, real estate licenses, and construction services.
In 2024, despite macroeconomic headwinds, Opendoor purchased 30% more homes year-over-year. The contribution margin increased to 4.7%, which was an improvement from the negative 3.7% recorded in 2023. Recognizing the slower start to the 2025 spring selling season and persistent market depression, Opendoor Technologies Inc. (NASDAQ:OPEN) also began increasing spreads in January to better manage risk.
Opendoor is actively enhancing the customer experience to drive higher conversion rates. This includes improvements to its pricing models. Notably, ~70% of the company’s 2024 acquisitions originated from sellers who initially declined an offer but later accepted a refreshed one after re-engagement. For Q1 2025, the company anticipates revenue between $1 billion and $1.075 billion.
