Not all stocks are capable of big potential gains for investors, but there are opportunities to be had for those willing to dig for value and growth. The challenge is balancing opportunity for stock appreciation with the risk usually associated with stocks that have the potential to double. 

Three of our contributors think Wynn Resorts, Limited (NASDAQ:WYNN), A. O. Smith Corp (NYSE:AOS), and Hasbro, Inc. (NASDAQ:HAS) have what it takes to double in investors' portfolio and balance the risk with reward well. 

Risk dial with a return read out at max level.

Image source: Getty Images.

A stock worth gambling on

Travis Hoium (Wynn Resorts): The gaming industry is all about where companies are placing their bets and what the potential payoff is for investors. Wynn Resorts, despite the recent loss of founder Steve Wynn, is still one of the best-positioned gaming companies in the world and has the most profitable resort in Las Vegas and could soon hold the same title in Macau. 

Wynn Palace in Macau is the company's flagship resort and just completed its best quarter with $693.4 million in revenue and $190.1 million in property EBITDA, a proxy for cash flow from a resort. When it's running at full steam (which sometimes takes a few years) and construction surrounding the resort is completed this could be a property that generates over $1 billion in EBITDA each year. 

When added to about $500 million in EBITDA from Wynn Las Vegas, a run-rate of $750 million in EBITDA at Wynn Macau, and an estimated EBITDA of $400 million from Wynn Boston Harbor when it opens we could see Wynn Resorts with about $2.65 billion of projected EBITDA generated annually given existing resorts and construction. When we consider the $8.9 billion in net debt after accounting for the recent $2.4 billion settlement with a former shareholder and Wynn's market cap of $19.0 billion the current enterprise value is $27.9 billion. That's 10.5 times the projected EBITDA I've outlined. How can Wynn Resorts stock double from here? 

If Macau's gaming market grows and Wynn can generate $2.5 billion in EBITDA annually in Macau (added to $900 million in the U.S.) and the enterprise value-to-EBITDA multiple increases to 13.8, the stock would have doubled. I think both are possible in the next five years as China's economy grows and Macau grows with it. If the market puts a bigger premium on a gaming stock like Wynn, we could see this stock double.

This boring stock can make you rich

Neha Chamaria (A.O. Smith): It's fascinating how profitable boring companies can be. A.O. Smith, a household name in the water heater market, is growing at a torrid pace: The stock has doubled in just the past three years, and there's no stopping it.

2017 was a record year for A.O. Smith, with sales hitting a record at $3 billion and adjusted earnings per share climbing 16% from 2016. China holds the key to the company's growth: Sales from the nation crossed $1 billion in fiscal 2017 as demand for water treatment and air purification products surged. Encouraged by the company's solid performance, management increased its dividend by 29% in January this year, marking its 13th consecutive year of dividend increases.

A.O. Smith is headed for fresh records, what with management guiding for 17% growth in adjusted EPS at the midpoint. A key factor that's working in the company's favor year after year is replacement demand, which isn't subject to the vagaries of economic cycles. You may delay the purchase of a car during challenging times, but chances are you'll still replace your water heater if it starts giving trouble. That's where A.O. Smith wins.

China and India present huge opportunities for A.O. Smith, thanks to similar demographics that include rapid urbanization and a growing middle class. These two markets, combined with a strong water treatment market in North America, should drive the bulk of A.O. Smith's organic sales in the coming years. Coupled with management's prudent capital allocation policies that focus primarily on opportunistic acquisitions and steady dividends, the company should continue to reap rich returns to shareholders-- so much so that I wouldn't be surprised if the stock continues to be a multibagger in the long run.

Time to stop playing around

Rich Duprey (Hasbro): It might be game over for toy retailer Toys R Us, which is planning a liquidation as its business evaporates, but that doesn't mean Hasbro won't still play along, even though it is being dragged down by the news.

Hasbro has plenty of outlets available to it to sell its games and toys, including Walmart, Target,and, of course, as well. Toys R Us was an important outlet to be sure, but its impact has been fading for some time. Hasbro still has plenty of opportunities available to it to increase the exposure of its brands, not least of which is due to its strong portfolio of brands, whether those that are in-house or come from partner licenses.

In particular, tie-ins with movies will serve to bolster its growth prospects, including the enduring popularity of franchises such as Star Wars, Transformers, and Marvel superheroes, along with its continuing relationship with Disney. And it all comes as its rivals are weakening. Mattel has been sliding for years, while Lego just reported its first sales drop in 13 years.

While that does point to risks associated with an investment in Hasbro, the toymaker remains the premier toy and game maker. It has a proven track record of developing products that kids can relate to, and with its growing presence in the digital market, Hasbro ought to be able to capture the trend of kids seeking out online entertainment. Trading near-52 week lows, Hasbro's discounted stock could help investors double their money as it emerges from the slump to rule the toybox.

Three stocks with big-time potential

Wynn, A.O. Smith, and Hasbro have the potential to be big winners for investors long-term and may even double in your portfolio. They all come with their own risks given their potential, but we think the risk is worth it considering the potential reward. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.