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Investors don’t have to hit a home run with every stock they own. One or two multibaggers can be enough to set one up for life or at least a comfortable retirement. It’s been difficult to find stocks that offer runaway growth since the meme stock rally faded. The days of a stock rising 100% or more in a single trading session appear to be behind us for the time being. But don’t worry. If interest rates start to fall in 2024 and the market rally takes off, it likely won’t be long before some stocks are again registering blistering growth. There are also emerging sectors offering the potential for big future gains, whether in artificial intelligence (AI), electric vehicles (EV), cybersecurity or other areas. Here are three hot stocks targeting 1,000% growth by 2030.
GameStop (GME)
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To the moon? It might be well below its meme stock heyday of 2021, but video game retailer GameStop (NYSE:GME) is still aiming to become the Amazon (NASDAQ:AMZN) of the gaming world. The company’s board of directors has just approved a new investment policy that will allow GameStop to allocate surplus cash to stocks and other investment vehicles rather than only government securities. Could a few well-placed bets in the market help to boost GameStop’s fortunes? It’s not impossible.
News of the new investment policy comes as the retailer reported its latest financial results. For its fiscal third quarter, GameStop reported a loss of 1 cents per share. That was much better than the loss of 8 cents a share expected on Wall Street. The company’s revenue missed targets at $1.08 billion, below forecasts of $1.18 billion. However, the company had $1.20 billion of cash on hand at the end of October and plans to put that money to work in the market, helping its growth prospects.
GME stock is down 5% on the year.
C3.ai (AI)
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C3.ai (NYSE:AI) remains an unprofitable start-up company. But, the growth opportunity in front of the company as a leading AI play remains intact. It is the massive growth potential of the company that has AI stock up 135% this year. The provider of enterprise generative AI software is widely viewed as one of the best-positioned companies to capitalize on the rapid growth of the AI industry worldwide.
C3.ai just reported its latest financial results for what was its fiscal second quarter. The company announced an earnings per share (EPS) loss of 13 cents, which was better than the loss of 18 cents forecast among analysts. Revenue in the quarter totaled $73.2 million, up 17% from a year ago but below the consensus forecast of $74.3 million. AI stock has taken a hit lately, not because of its earnings but because of its guidance. The company withdrew its forecast of achieving profitability by the end of 2024.
Despite the recent pullback, AI stock still has a lot of potential and could see massive growth between now and 2030.
Nio (NIO)
Source: Piotr Swat / Shutterstock.com
Chinese EV manufacturer Nio (NYSE:NIO) is another stock that pulled back recently but continues to have the potential for big future growth. NIO stock got a lift recently after the company announced plans to spin off its battery production unit by the end of this year so it can concentrate more on ramping up production and delivery of its EV models. Spinning off the battery business will also help Nio to reduce its costs and achieve profitability, say analysts who applaud the move.
Nio continues to aggressively compete against domestic players and global EV leader Tesla (NASDAQ:TSLA) within its home market of China, where competition for electric vehicles is fierce and getting fiercer. Executives at the company have said despite the spin-off, they still have a long-term goal of developing their own EV batteries, but the focus now is on reaching profitability. Nio delivered 55,432 vehicles in this year’s third quarter, up 75% from a year ago, driving its Q3 sales up 42% year-over-year.
NIO stock has declined 22% this year.
On the date of publication, Joel Bagloledid not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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