In a recent episode of The Rank on Fool Live, recorded on Aug. 23, longtime Fool.com contributors Matt Frankel, CFP, and Jason Hall ranked six beaten-down stocks to try to find the best bargain opportunities in the market. Of the six companies -- Outset Medical (NASDAQ:OM), Pinterest (NYSE:PINS), Zoom Video Communications (NASDAQ:ZM), Seritage Growth Properties (NYSE:SRG), SoFi Technologies (NASDAQ:SOFI), and Appian (NASDAQ:APPN) -- here are the ones these experts think have the best chance of producing 10X returns over the next five years or so.
Matt Frankel: Which of these stocks, and I'll let you go first on this one, which do you think is most likely to 10X in value? I'll give you a timeframe, I'll say five years.
Jason Hall: Probably Outset Medical. I just think because it's starting from such a low base, it already has a product that looks like it's disruptive. It has a really clear economic case and the trends are in its favor. I'm going to say Outset Medical.
Frankel: I would say that with the exception of maybe Zoom, all of these could 10X in five years. I think with Zoom, that would be a heavy lift.
Frankel: We don't invest in stocks because we think they're going to 10X in five years. That's an ultra aggressive target. But if I were to name one of these that was most likely to 10X in five years, I would have to say SoFi. I would say that if they are successful, remember, SoFi just got a windfall of cash to build out their business. They are doing the same things that a lot of other FinTech disruptors are doing and they're doing it better. I mentioned Robinhood (NASDAQ:HOOD). What's Robinhood's valuation right now is something like $40 billion? SoFi is a small fraction of that.
Hall: Probably and more diversified and one could argue maybe a better business because of that diversification.
Frankel: Right, already almost profitable. A big, loyal user base, people who use SoFi's products, whether it's a personal loan, whether it's their bank account, whether it's their brokerage platform, they love it. The customer engagement is fantastic. Before COVID they actually had member meet-ups in a lot of cities around the country. They really tried to build a community, which is one thing I love about the business. But like I said, I think all of these could 10X other than maybe Zoom, I own four out of them. I own Appian, Pinterest, SoFi, and Seritage. I think all four of those could 10X within the next five years potentially. I'd be very happy if they did.
Jason Hall: I own them all, but SoFi. I would also be happy.