If you have enough time – doubling your money is not that difficult. Even with a small growth rate, you can double your money in hundreds or thousands of years. When it comes to stocks, even an annual growth of 4% more than doubles in 20 years. But you clicked in this article in search of faster growers than that, right?
Here are three companies that can double your money – potentially in a few years. See if any of them are interested as candidates for your long-term portfolio.
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1. General Electric
General Electric (NYSE: GE) Going through its transformation in recent years, by selling its devices business, its customer credit card operations (e.g. Synchronous Finances), And focuses primarily on its aviation, health care and energy operations. However, the epidemic took a toll, with most of its business slowing or stagnating, and total revenue in 2020 fell 16% year-over-year. But the company continues to pay off debt and sees brighter days ahead, as more orders for aviation products come in due to the epidemic winding and orders for renewable energy vacancies such as wind turbines are starting to arrive.
Summing up the company’s year, Larry Kalp, Chairman and CEO of GE, said: “As 2020 progressed, however, we saw significant improvements in GE’s profitability and cash flow despite the still difficult macro environment. One in the fourth quarter Free cash flow ended a challenging year, which reflects. Better performance in power and renewable energy, as well as strong and corrective order results. “
General Electric was a longtime payer of meaningful dividends, but its payments dropped 90% a few years ago when it was struggling. It is slowly growing again, and its dividend has recently received 0.34%. If its cash flow remains solid and steady, it will not be a surprise to see significant dividends ahead. The value of the stock price should also help the money of the stock double investors.
2. Pinterest
Pinterest (NYSE: PIN) The stock rose more than 250% in 2020, and recently increased its earnings (P / E) ratio to prices above 200. So yes, there are some expectations in this stock. Thus, it will not double in the near future – but its long-term future looks quite promising. The company’s platform allows users to share visual inspiration for food, fashions, styles, crafts, home decor and more. There are also a lot of users, – over 450 million, in fact, who use the site at least monthly. Together, users have saved close to 300 Billion “Pin.”
The company has a tremendous business model, as it is capital-light: the site already exists and is low cost to support many more users. It makes a profit from digital advertising on its site, and unlike many other sites where users find ads annoying, users on Pinterest are looking for ads that offer a lot of advertising. If they have pinned a lot of home decor items, they would be an additional acceptable for home decor items.
In the last quarter of Pinterest, its revenue has increased year-over-year, net income by 2,686%. You can’t expect such growth rates to continue for long, but the company will project a 70% -plus year-over-year growth rate for revenue in the coming first quarter. Such a growth rate could make the steep P / E ratio more palatable – especially for long-term investors. This is a very promising company with a bright future. If Pinterest is able to further monetize its vast user base, it could be a powerful catalyst for further growth.
3. Shrimp
Mobile Video Game Specialist Shrimp (Nasdaq: ZNGA) There is another company that is a good shot at doubling in value in a handful of years. You are familiar with some of its ings: Words with friends, Shrimp Poker, CSR Racing, Empires and puzzles, Toon Blast, Toy explosion, Merge the Dragons, And Merge Magic.
Zinga recently reported a strong 2020, with revenues growing 49% year-on-year and cash-on-cash flows up 63%, and cash and investments topping 1.5 billion dipping. The company is acquiring other businesses alongside existing game franchisees, and that cash pile could fund more purchases. The company is eyeing Asia to accelerate its top and bottom line, and also aims to increase game-buying by players.
Like Pinterest, shrimp shares won’t look cheap, but the company’s forward-looking P / E ratio was only in the late 30s, and its recent price-to-sales ratio was only 36% higher than its five-year average. . Conservative investors may be looking for more clearly valued stocks than Pinterest and Zinga, but risk-tolerant ones may justify premium prices with faster growth rates.
A little time dug around Aroundline can enable many more portfolio candidates to double in value in a few years. You may want to dig one or more of these three companies.
