4 foolproof actions that can triple your money by 2026
IIf there’s one lesson Wall Street is always ready to teach, it’s the importance of patience. Despite 38 double-digit percentage corrections over the past 71 years, the benchmark S&P 500 finally always put these slowdowns firmly in the rearview mirror.
In other words, the quality of the companies you buy and the time you spend on your dissertation are far more important than when you choose to buy. So even with a broader market near an all-time high, sure-fire winning stocks with exceptional upside potential can still be found.
For example, each of the following four foolproof actions has the potential to triple your money by 2026, or maybe even sooner.
Image source: Getty Images.
Some investors (myself included) would say the electric vehicle (EV) industry has come close to bubble-type valuations. For example, the recent initial public offering of Rivien briefly pushed its market cap north of $ 100 billion with no income over the past 12 months. But for the China-based electric vehicle maker Nio (NYSE: NIO), there is a real way for this supercharged growth stocks triple by 2026.
The success of Nio will depend mainly on the expansion of its production and innovation. Regarding the first, the company was held back in the second and third quarters by semiconductor chip supply issues. With these concerns now removed, Nio delivered nearly 10,900 electric vehicles in November. It’s a annual operating rate of over 130,000 EVs. By the end of next year, Nio’s operating rate could more than quadruple to 600,000 electric vehicles.
When it comes to innovation, Nio has several ways to win. Next year it will introduce three new models to its range. The company also relies on its battery-as-a-service (BaaS) program as a way to build customer loyalty and increase long-term margins. In exchange for a reduced initial purchase price, customers enrolled in the BaaS program pay a recurring monthly fee.
Nio is on track to almost quadruple its sales to reach $ 20 billion by 2024 in the world’s No. 1 automotive market (China) and is expected to achieve recurring profitability in 2023. If it can meet these high expectations, its Current market capitalization of $ 45 billion being an absolute theft.
Image source: Getty Images.
High growth stocks have traded at a premium throughout 2021. But cannabis is an industry where growth stocks are valued at a lower price. that’s why marijuana stock Jushi Holdings (OTC: JUSHF) is a good bet to triple investor money by 2026 or before.
To address the biggest concern in the cannabis space, the U.S. federal government doesn’t need to legalize weed or pass reforms for multi-state operators to be successful. Legalization would eliminate some operational inefficiencies, but Jushi and many of his peers don’t need to thrive.
Jushi has three factors which could allow its stock to triple in value in the years to come. First, the focus is on the limited license markets (Pennsylvania, Illinois, Virginia and Massachusetts). States that deliberately limit the number of dispensaries that can open, as well as the number of licenses a single company can hold, make it easier for smaller players like Jushi to grow their brands and retain customers.
Second, Jushi’s management team prudently used their capital to make small acquisitions. The ability to sprinkle inorganic growth opportunities with dispensary openings is a powerful tool in expanding the reach of the business and increasing its long-term profit potential.
Third, the initiates and rulers of Jushi played a key role in raising capital. About $ 45 million of the initial $ 250 million in capital raised by Jushi came from insiders and executives. This ties their financial interests to those of their shareholders, which is often a very good thing.
Image source: Lovesac.
Another foolproof stock with all the tools you need to triple your money by 2026 is the Furniture Retailer Lovesac (NASDAQ: LOVE).
Normally, just saying the words “furniture retailer” can put any investor in a deep sleep. This is because the furniture industry has a heavy operating model dependent on foot traffic and many similar wholesale products. Lovesac approaches furniture sales in two unique ways.
Without doubt the greatest differentiator between Lovesac and the other furniture stores is the piece of furniture. Lovesac’s flagship product (accounting for around 85% of sales) is its modular sofas called sactionals.
Sactionals can be rearranged in dozens of ways to fit any living space. Plus, there are around 200 to choose from for covers with sactionals, so they match any color or theme in a house. And for those of you who favor eco-friendly businesses, the yarn used in these covers is made entirely from recycled plastic water bottles.
Lovesac too stands out with its omnichannel sales platform. As traditional furniture stores live and die from foot traffic to physical locations, Lovesac has shifted nearly half of its online sales to the worst of the pandemic. The company operates pop-up showrooms and also has showroom deals with branded retailers.
At first glance, Lovesac is a furniture company. But take it a step further and you’ll see a profitable cutting edge innovator with the potential for sustainable double-digit growth and low overhead.
Image source: Getty Images.
A fourth and final safe bet with the potential to triple your money by 2026 is an ad technology company PubMatic (NASDAQ: PUBM).
Before the invention of the Internet, humans handled the buying, selling, and placement of advertisements. It was at best an arduous and inefficient process. Today’s programmatic advertising company software manages the buying, selling, and optimization of advertisements.
PubMatic is a sell-side platform in the programmatic advertising space. It just means that its clients are publishers looking to sell their poster space. While it is in PubMatic’s best interests to make its clients as much money as possible for their display space, the company also recognizes that delivering relevant content to users will delight advertisers as well.
In other words, PubMatic’s cloud-based, machine-algorithm-based platform won’t always fill display spaces with the most expensive ad. Over time, however, this should lead to improved pricing power for the company’s customers.
Speaking of clients, PubMatic is working on a four quarters of organic growth of at least 50%. That is, existing publishers spent at least 50% more year over year with the company for four consecutive quarters. This is pretty compelling proof that publishers love the platform.
What investors should note is that the switch to digital advertising still has a long way to go. Global digital advertising spending is expected to grow an average of 10% per year through 2025. PubMatic, on the other hand, shouldn’t have more trouble than doubling this pace.
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