Please ensure Javascript is enabled for purposes of website accessibility

3 Stocks to Buy Right Now That Could Triple Your Investment Within the Next 10 Years

By Keith Speights - Apr 26, 2020 at 8:31AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's not a joke. These stocks really have a good shot at generating ginormous returns.

Can you triple your money in one decade or less? Absolutely. Plenty of stocks have delivered those kinds of gains in the past. And there are stocks that can do so in the future.

There are two key ingredients needed, though. First, there must be a huge addressable market that's largely untapped. Second, the companies must have competitive advantages that enable them to capture enough of that market to generate sizzling growth. 

Here are three stocks that definitely check off both of these boxes. I think that you can buy these stocks right now and potentially triple your investment over the next 10 years -- and possibly even sooner. 

Dollar bill folded into an arrow pointing up

Image source: Getty Images.

1. Guardant Health

Guardant Health (GH 8.23%) held its initial public offering (IPO) in October 2018. If you had invested in the stock at its IPO, your initial investment would have nearly quadrupled in 20 months. That's a whole lot better than tripling in a decade.

I'm convinced that Guardant Health can deliver mind-blowing returns over the next 10 years as well. The company is a pioneer in the liquid biopsy market. If you're not familiar with liquid biopsies, they're blood tests that can detect fragments of DNA that have broken off of cancer cells. Guardant Health already has two liquid biopsy products on the market that are growing sales like crazy.

Guardant360 helps match patients who have been diagnosed with advanced-stage cancer with the most appropriate therapy. Drugmakers use GuardantOMNI to screen cancer patients for clinical studies of experimental drugs. The estimated market for Guardant360 is around $6 billion in the U.S. alone. To put that number in perspective, Guardant Health's market cap right now is around $7 billion.

If that sounds appealing, make sure you're sitting down before you read what's next. Guardant Health has also developed two other liquid biopsy products that aren't commercially available yet. LUNAR-1 holds the potential to detect cancer recurrence, while LUNAR-2 could allow cancer to be detected at very early stages.

The addressable market for these two products tops $45 billion annually. If Guardant Health can capture just a fraction of this market (and I think it will), this healthcare stock will skyrocket even more in the next few years.

2. MongoDB

MongoDB (MDB 3.67%) went public around a year before Guardant Health did. If you had invested in the database company's IPO, you'd now be sitting on a return of more than 550% in less than three years. 

You might be thinking, "Yeah, but it's easier for stocks to soar like that at first and a lot harder to keep the momentum going." And you'd be right. However, I think that MongoDB has what it takes to keep its sizzle from fizzling.

For one thing, the database market continues to grow briskly. Market researcher IDC estimates that the global database market will jump from $71 billion in 2020 to $97 billion by 2023. If we assume that this growth rate will continue throughout the decade and that MongoDB's share price simply grows at the rate of the overall database market, the stock will nearly quintuple over the next 10 years.

Here's the kicker: MongoDB is growing much faster than the overall database market is. That's primarily because of the company's Atlas cloud-based database-as-a-service platform. There's a massive shift with customers migrating their data to the cloud. Atlas provides a way for them to achieve this while minimizing the hassle.

3. The Trade Desk

I'm not going to discuss how much money you would have made if you had invested in The Trade Desk's (TTD -0.55%) IPO in 2016. You could have waited until the beginning of 2018 to buy the stock and still quadrupled your initial investment. Keep in mind, this return reflects the fact that The Trade Desk's shares remain nearly 20% below their highs from earlier this year. 

Fingers holding a remote with a blurred view of a TV in the background

Image source: Getty Images.

My view is that the coronavirus-driven market sell-off presents a fantastic opportunity to buy The Trade Desk stock. The company is the leader in buy-side programmatic advertising. For a long time, advertising agencies had to negotiate back and forth with media outlets to place ads. The Trade Desk's software platform allows them to do it instantly and a lot more cost-effectively.

The Trade Desk's opportunity is so great that it's likely to perform well in 2020 despite the likelihood that the COVID-19 pandemic will dampen advertising spending. And the long-term prospects for the company really look attractive.

By 2025, the total global advertising market should reach $1 trillion. The programmatic advertising market currently stands at only $34 billion but is growing five times faster than the overall market. With TV streaming services fueling increased demand for The Trade Desk's programmatic advertising platform, I think there's a very good chance the tech stock could triple in value by the end of this decade if not sooner.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Trade Desk Stock Quote
The Trade Desk
$41.66 (-0.55%) $0.23
MongoDB Stock Quote
$269.01 (3.67%) $9.51
Guardant Health, Inc. Stock Quote
Guardant Health, Inc.
$43.66 (8.23%) $3.32

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.