Please ensure Javascript is enabled for purposes of website accessibility

These 3 Stocks Have Doubled (or More) and Still Have Room to Grow

By Matthew Frankel, CFP® - Feb 4, 2021 at 5:22AM

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

Despite huge gains, these three stocks could just be getting started.

The stock market has performed extremely well recently, with the S&P 500 index higher by 17% over the past six months. Many stocks have done far better, doubling or more in that short amount of time.

A stock that has been an excellent performer can still be worth buying, despite the higher price. Here are three in particular that still look like exciting long-term investments despite rising by 100% or more over the last six months.

Laptop user cheering.

Image source: Getty Images.

These three stocks have doubled (or more) in just six months

Company (Symbol)

Industry

6-Month Performance

Pinterest (PINS 8.12%)

Social Media

116%

Boston Omaha (BOC 1.42%)

Conglomerate

145%

Lemonade (LMND 7.85%)

Insurance

119%

S&P 500 (for reference)

N/a

17%

Data source: YCharts. Six-month returns as of 2/3/2021.

All three have performed well for good reasons. Pinterest gained over 100 million users in the past year, Lemonade's revenue has more than doubled, and some of Boston Omaha's key investments have performed very well.

There could still be plenty of room to climb

Although these stocks more than doubled in just six months, there could be plenty of room to grow in the years ahead. 

Pinterest still has a massive opportunity to monetize its user base, especially internationally. The average international Pinterest user generates roughly 5% of the revenue of its domestic users. Since over three-fourths of Pinterest's user base is international, even a small narrowing of the gap could be a game-changer. Plus, since Pinterest's main use case is a place people go for ideas, there are some natural e-commerce opportunities that the company has just started to explore.

Boston Omaha Corporation is often compared to an early Berkshire Hathaway, and it's easy to see why. The company's business model involves acquiring subsidiaries and other investments, which can then generate cash flow to acquire even more. In addition to growth opportunities in its main businesses (billboards, insurance, and rural broadband), Boston Omaha recently launched a SPAC called Yellowstone Acquisition. One of its larger investments, Dream Finders Homes, also just completed a very successful IPO. With a market cap roughly 0.2% of Berkshire's size, it could still have quite a long way to let its time-tested business model play out.

Last but certainly not least, insurance technology company Lemonade has taken its core markets of homeowners, renters, and pet insurance by storm, with gross earned premiums more than doubling in the most recent quarter. To put Lemonade's impressive growth into perspective, consider that the company just hit 1 million customers in a little over four years in business, an accomplishment that took State Farm and GEICO 22 and 28 years to achieve, respectively. However, Lemonade is just starting to dip its toes into the $800 billion term life insurance market, and that's the most exciting opportunity right now. If Lemonade can replicate its success and capture a large share of the life insurance market, the recent performance could be just the beginning.

These companies are long-term winners; invest accordingly

Investors must remember that a top-performing stock can continue to deliver strong results. It's a common mistake to say, "Well, this stock has done well, let's look for something cheaper." All three of these companies have impressive growth opportunities going forward. These stocks have gone up for solid reasons, and could certainly give the market reasons why they're worth even more.

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

Pinterest Stock Quote
Pinterest
PINS
$20.23 (8.12%) $1.52
Boston Omaha Corporation Stock Quote
Boston Omaha Corporation
BOC
$22.11 (1.42%) $0.31
Lemonade, Inc. Stock Quote
Lemonade, Inc.
LMND
$20.20 (7.85%) $1.47

*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
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

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.