In theory, any stock could potentially be a millionaire-maker. However, the odds are stacked against most stocks joining the club by the end of this decade.
Some stocks, though, have much greater chances of generating sizzling gains than others do. Here are five growth stocks that could quadruple by 2030.
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1. Etsy
Etsy (ETSY -0.22%) belongs to a relatively large group of growth stocks that have plunged significantly in recent months. Shares of the e-commerce company are down more than 50% from the high set in December. But I think that Etsy should realistically be able to quadruple or more over the next eight or so years.
The company's 2021 acquisitions of global fashion reseller Depop and Brazilian e-commerce platform Elo7 are likely to boost Etsy's growth. These businesses, especially, should help Etsy expand its international sales. The company is already achieving success on this front, though, with non-U.S. gross merchandise sales (GMS) accounting for 44% of total GMS in the fourth quarter of 2021.
But Etsy's core platform for handcrafted goods remains its crown jewel. New buyers continue to flock to Etsy, with 10.2 million in Q4. And many of Etsy's existing buyers have become repeat customers: The company hit an all-time high of 36.3 million repeat buyers in 2021, with 8.1 million of those qualifying as "habitual buyers."
Etsy's market cap is currently less than $18 billion. The company's total addressable market, in its niche handcrafted-products market alone, is at least $100 billion.
2. Innovative Industrial Properties
Innovative Industrial Properties (IIPR 0.28%) is a real estate investment trust (REIT) focused on the regulated cannabis industry in the U.S. A $250,000 investment in this stock back in early 2019 would have already grown to more than $1 million.
I don't expect IIP to turn in a repeat performance over the next three years. However, the stock could very well achieve another gain of 300% or more by 2030. All IIP needs to do is keep doing what it's been doing: buying properties from cannabis operators and leasing those properties back to the operators.
IIP currently owns 105 properties in 19 states. The cannabis markets in all of these states have plenty of room to grow. And there are another 19 states where the company doesn't have operations yet.
Another key factor that could help IIP be a millionaire-maker is its dividend. IIP's dividend is now 10 times what it was five years ago.
3. MercadoLibre
Like Etsy, MercadoLibre (MELI -1.98%) is an e-commerce stock that's dropped more than 50% from its peak. Also like Etsy, it has exceptionally strong growth prospects.
MercadoLibre operates a leading e-commerce platform in Latin America. The e-commerce penetration in the region is still only around 10%, but is projected to grow to 16% by 2025.
The company also has a big opportunity in fintech. As CFO Pedro Arnt noted in the company's fourth-quarter conference call, "We still live in a context where most people have difficulty accessing credit, savings, and insurance products and controlling their finances." MercadoLibre's digital payment services could disrupt the financial landscape in Latin America over the next several years.
4. Novocure
Novocure's (NVCR) Tumor Treating Fields (TTFields) technology ranks among the most innovative treatments for cancer. These TTFields use electrical fields to interfere with tumor-cell replication.
Currently, TTFields are approved for use in treating glioblastoma (a type of brain cancer) and mesothelioma (a cancer caused by exposure to asbestos). But Novocure is only scratching the surface of the potential for the technology.
The company expects to report data from a phase 3 study targeting non-small cell lung cancer later this year. It also should have results from late-stage studies evaluating TTFields in treating ovarian cancer and brain metastases in 2023, and in treating pancreatic cancer in 2024.
These indications represent much larger markets than glioblastoma and mesothelioma. If Novocure wins regulatory approvals in the additional types of cancer, it's quite possible that the stock could quadruple or more.
5. Teladoc Health
Teladoc Health (TDOC 0.30%) stock has plummeted 70% over the past 12 months. I think many investors have misconceptions about the virtual-care leader that contributed to this overdone sell-off.
Teladoc has two numbers that especially stand out. First, the company thinks it has a $75 billion opportunity within its existing membership base. Second, it estimates that its total addressable market in the U.S. is $260 billion. Adding in the international market would greatly increase the total.
To put these numbers into context, Teladoc expects to generate around $2.6 billion in revenue this year. Its market cap currently stands below $10 billion. I think the chances are quite good that this stock could turn $250,000 into $1 million or more by 2030.
