Compound annual growth rate (CAGR)

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Can Amazon Stock Double by 2030?
The Motley Fool· 2025-06-20 09:52
The stock of Amazon (AMZN -0.94%) has delivered life-changing gains for investors who got in early enough. It's up nearly 200,000% over its lifetime and 900% over the past 10 years.Everyone is talking about what it's doing in artificial intelligence (AI) today and how that could jump-start sales growth. There's a huge long-term opportunity, but can Amazon stock double over the next five years? Growth drivers everywhereWith all of the AI hype, let's not forget that Amazon's main business, for now at least, i ...
Prediction: These 2 Stocks Will Join the Trillion-Dollar Club by 2030
The Motley Fool· 2025-05-11 10:05
Core Viewpoint - Companies like Eli Lilly and Visa are positioned to potentially reach a market cap of $1 trillion by 2030, making them attractive long-term investment opportunities due to their growth prospects and market positions [1]. Eli Lilly - Eli Lilly has a current market cap of just under $737 billion and needs a compound annual growth rate (CAGR) of 6.3% to reach $1 trillion by 2030, which is below the market's historical performance [3][4]. - The company faces challenges such as market-wide issues and high valuation metrics, with a forward price-to-earnings (P/E) ratio of 35.4, significantly higher than the healthcare sector average of 16 [3][4]. - Eli Lilly's innovative pipeline includes investigational weight management medicines and a promising gene therapy for deafness, positioning it well in the growing weight loss market [5][7]. - The company has a strong dividend growth history, which can enhance returns for long-term investors [7]. Visa - Visa's market cap is just under $679 billion, requiring a CAGR of 8.1% to achieve a $1 trillion valuation by 2030, which is manageable within equity market standards [8]. - The company benefits from inflation as its fees are transaction-based, potentially increasing revenue during economic fluctuations [8][9]. - Visa has demonstrated resilience during economic downturns, maintaining strong performance despite challenges like the pandemic [9][10]. - The company enjoys a dominant position in the payment technology sector with a strong network effect, making it difficult for competitors to disrupt its market [10]. - Visa has significant growth prospects due to the ongoing shift from cash to credit and debit transactions, as well as the expansion of e-commerce [11].
Where Will VeriSign Stock Be in 3 Years?
The Motley Fool· 2025-05-11 08:55
The domain registry operator runs an evergreen business.VeriSign (VRSN -1.40%) isn't considered a high-growth stock. But over the past three years, the domain registry operator's shares rallied 66% as the S&P 500 advanced 37%. Let's see why this oft-overlooked stock beat the market -- and where it might head over the next three years.A boring but evergreen businessVeriSign operates the authoritative domain name registries for the internet's two most popular top-level domains: .com and .net. It's also the ma ...
Hims & Hers Health Shocks Investors With a Long-Term Forecast, but Is the Stock a Buy?
The Motley Fool· 2025-05-08 09:05
Following the company's first-quarter earnings report, shares of Hims & Hers Health (HIMS 5.21%) opened the following day considerably lower, only to sprint higher once trading began. This action is just one example of why the stock is a bit of a divisive name among investors. This can also be seen in its high short interest, which sits above 25%.The stock is up around 108% year to date (as of this writing), while at the same time it's down about 27% from the highs it set earlier this year. Let's take a clo ...
Is Cava Stock Your Ticket to Becoming a Millionaire?
The Motley Fool· 2025-05-04 08:45
Group 1: Company Overview - Cava operates a chain of fast-casual restaurants with a Mediterranean theme, aiming to replicate the success of Chipotle Mexican Grill [4] - As of the end of 2024, Cava had 367 stores and demonstrated strong comparable sales growth, with a year-over-year increase of 21% in Q4 2024 [5] - The company opened 58 new stores in 2024 and plans to open approximately 64 stores in 2025, indicating a steady growth trajectory [6] Group 2: Financial Performance - Cava's contribution margin expanded by 50 basis points to 22.4%, and average unit volume increased from $2.78 million to $2.87 million, enhancing per-store profitability [5] - Net income surged from $2 million to $78.6 million year-over-year in Q4 2024 [5] - Sales increased by 33% last year, but growth is expected to decelerate, with management guiding for a comparable sales growth of 7% in 2025 [7][10] Group 3: Market Expectations and Valuation - Cava's stock is currently down 18% this year, trading at a forward price-to-earnings ratio of 130, indicating high market expectations [9] - The price-to-sales ratio is currently 11, with a hypothetical scenario suggesting that if it decreases to 5 in 10 years, the market cap could reach $19.5 billion, nearly double its current market cap of $10.7 billion [11] - Despite the potential for growth, Cava may not be the guaranteed path to millionaire status due to high expectations already priced into the stock [12]
Six Flags' Stock Reflects Best-Case Scenario—Analyst Warns Of Growth & Cost Risks
Benzinga· 2025-02-28 18:37
J.P. Morgan analyst Matthew R. Boss reiterated an Underweight rating on the shares of Six Flags Entertainment Corp FUN with a price forecast of $46.00.FUN’s fourth-quarter EBITDA fell approximately 30% short of the Street’s estimate of $190 million.The miss was driven by both revenue and cost discrepancies, with revenue increasing 3.6% year-over-year to $687 million, below the Street’s forecast of $704 million. According to the analyst, higher total costs resulted in an EBITDA margin of 19.0%, well below th ...