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7 Growth Stocks to Buy Now for 20X Returns by 2030
CPNGCoupang(CPNG) investorplace.com·2024-05-23 10:15

Investment Strategy - Patience is the key quality for investors to achieve long-term wealth, as holding quality growth stocks can yield significant returns despite short-term temptations to sell after substantial gains [1] - The market is in an uptrend, and with potential rate cuts in the next 18 months, high-quality growth stocks are expected to perform well, despite volatility [2] - Growth stocks are poised for multi-fold returns through 2030, driven by healthy revenue growth and cash flow upside [3] Li Auto (LI) - Li Auto's stock is attractive at a forward P/E of 15, following a correction after weak Q1 2024 results [5] - The company has strong fundamentals, with 422 million in Q1 R&D expenses, implying an annual R&D investment of over 1.5 billion [6] - Li Auto ended Q1 2024 with a robust cash buffer of 13.7billion,providingflexibilityforproductdevelopmentandretailexpansioninChina[7]DraftKings(DKNG)−DraftKingshasseena7413.7 billion, providing flexibility for product development and retail expansion in China [7] DraftKings (DKNG) - DraftKings has seen a 74% stock price increase in the last 12 months, driven by positive financial metrics and a large addressable market in the iGaming and online sports betting sectors [9] - The company expects the iGaming and OSB market to grow from 20 billion in 2023 to 30billionby2028,withpotentialforfurtherexpansionasnewstateslegalizetheseactivities[10]−Q12024revenueincreasedby5330 billion by 2028, with potential for further expansion as new states legalize these activities [10] - Q1 2024 revenue increased by 53% to 1.2 billion, with a raised revenue guidance of 4.9billionfortheyearandanadjustedEBITDAof4.9 billion for the year and an adjusted EBITDA of 500 million [11] Cronos Group (CRON) - The U.S. cannabis market is projected to be worth 71billionby2030,withGermany′srecentlegalizationpotentiallyleadingtobroaderEuropeanadoption[12]−CronosGroupreporteda3071 billion by 2030, with Germany's recent legalization potentially leading to broader European adoption [12] - Cronos Group reported a 30% year-on-year revenue growth in Q1 2024 to 25.3 million, with expansion into new geographies like Germany, Australia, and the UK [14] - The company has a strong cash buffer of 855million,supportingorganicandacquisition−drivengrowth[13]MinisoGroupHolding(MNSO)−MinisoisundervaluedwithaforwardP/Eof18.7andadividendyieldof1.80855 million, supporting organic and acquisition-driven growth [13] Miniso Group Holding (MNSO) - Miniso is undervalued with a forward P/E of 18.7 and a dividend yield of 1.80%, offering potential for multibagger returns [16] - Q1 2024 revenue grew by 26% year-on-year to 515.7 million, with an adjusted EBITDA margin expansion of 200 basis points to 25.9% [17] - The company plans to open 900 to 1,100 stores annually between 2024 and 2028, targeting a revenue CAGR of over 20% [18] Lithium Americas (LAC) - Lithium Americas is a promising lithium stock with a market valuation of 924million,expectedtodelivermultibaggerreturnsduetothelong−termdemand−supplygapforlithium[20]−Thecompany′sThackerPassassethasaminelifeof40yearsandanafter−taxnetpresentvalueof924 million, expected to deliver multibagger returns due to the long-term demand-supply gap for lithium [20] - The company's Thacker Pass asset has a mine life of 40 years and an after-tax net present value of 5.7 billion, with potential annual EBITDA of 2billiononcefullyoperational[21]−A2 billion once fully operational [21] - A 2.26 billion loan from the U.S. Department of Energy and a 275millionpublicofferingensurefinancialstabilityfortheThackerPassproject[22]Coupang(CPNG)−Coupangreporteda23275 million public offering ensure financial stability for the Thacker Pass project [22] Coupang (CPNG) - Coupang reported a 23% year-on-year revenue growth in Q1 2024 to 7.1 billion, with a gross profit margin increase of 260 basis points to 27.1% [25] - The company has 1.5billioninfreecashflowoverthelast12months,supportingaggressiveinvestmentsandinternationalexpansion[25][27]−CoupangisexpandingintoemergingAsiaandSoutheastAsia,andhasenteredthegloballuxuryretailmarketthroughtheacquisitionofFarfetchHoldings[27]MakeMyTrip(MMYT)−MakeMyTrip′sstockhassurgedby2001.5 billion in free cash flow over the last 12 months, supporting aggressive investments and international expansion [25][27] - Coupang is expanding into emerging Asia and Southeast Asia, and has entered the global luxury retail market through the acquisition of Farfetch Holdings [27] MakeMyTrip (MMYT) - MakeMyTrip's stock has surged by 200% in the last 12 months, with the company positioned to benefit from India's growing travel market [29] - India is expected to become the fourth-largest global travel spender by 2030, driven by the addition of 140 million middle-income and 50 million high-income households [30] - The company reported an operating profit of 124.2 million for FY24, with a strong balance sheet and a cash buffer of $608 million for potential acquisitions [31]