While rich is a somewhat arbitrary term, becoming wealthy from a $5,000 investment in stocks usually means spotting a multibagger before it takes off. Multibaggers are stocks that increase in value multiple times compared to their original cost. For example, if you bought $5,000 worth of a stock and its value grew to $50,000, it would be a 10-bagger -- meaning it increased by 900% or 10 times.

Keeping this multibagger focus in mind while looking down the road 20 years with our $5,000 investments, these three stocks could make investors rich if they are willing to hold for the long term.

Two gamers competing together while using their smartphones.

Image source: Getty Images.

1. Unity Software

Unity Software (U -2.47%) has quickly become a dominant force in helping artists develop games and monetize them through its create and operate solutions. Whether providing the tools and software needed to make the majority of today's biggest mobile games or helping to increase the lifetime value of a customer for the games, Unity is a one-stop-shop for content creators in the industry.

However, despite its importance to a gaming industry whose total market value is expected to grow from $178 billion in 2021 to $269 billion by 2025, Unity has seen its share price hammered over the last several months thanks to its slowing growth concerns and the broader tech stock sell-off. 

Down 78% in the last six months, Unity stock was met by the market with another nasty reaction to its first-quarter earnings for 2022 as management cited struggles within its Operate segment. These struggles stem from Unity's monetization business absorbing poor data from a significant customer as it continued to adjust to Apple's privacy changes for its devices' operating system.

Despite the total impact of this issue expected to be $110 million over the next two quarters, management is still guiding for 22% to 28% revenue growth for 2022 -- a slight slowdown from Q1's year-over-year growth of 36%. 

However, these headwinds should be temporary, and Unity's expansion into new verticals -- such as building digital twins -- in its Create Solutions segment gives it tremendous growth optionality. Thanks to these sales, Create Solutions grew 65% year over year in Q1 and acts as the starting point for bringing new business into the Unity ecosystem. 

With these optionality prospects and the stock's recent price drop, Unity has real potential to become a multibagger over the next 20 years, as it works to provide the picks and shovels for the broader "metaverse" expansion.

Freelancer listening to music through headphones while sitting on the floor with laptop.

Image source: Getty Images.

2. Fiverr International

Down 77% over the last year, share prices of freelancer-empowering Fiverr International (FVRR -1.84%) seem to have become detached from the progress being made in the underlying business.

Growing revenue by 27% year over year for the first quarter of 2022, Fiverr is still expanding consistently, just at a slower rate than its 56% annual growth rate over the last three years. 

FVRR Revenue (TTM) Chart

FVRR Revenue (TTM) data by YCharts

Using a service-as-a-product model, Fiverr connects businesses with freelancers -- traditionally focusing on digital services such as voiceovers, search engine optimization, or social media advertising, to name a few.

These services exploded during the pandemic as businesses scrambled to stay afloat and freelancers looked to generate income at home. Thanks to these formidable comparable quarters from 2020 and 2021, Fiverr's growth looks slower but remains quite substantial considering the comps it lapped.

Speaking to this point, Fiverr saw strong growth across each of its three most important key performance indicators: active buyers, spend per buyer and take rate. Active buyers for Q1 2022 grew 11% year over year, spend per buyer grew 17%, and take rate increased by 240 basis points to 29.6%. 

This three-pronged attack on growth, paired with the fact that Statista expects 51% of the United States workforce to be freelancers by 2027, gives Fiverr unique multibagger potential as it looks to outgrow its mere $1.4 billion market capitalization, or company price tag. 

3. The Lovesac Co.

Offering a beautiful blend of changeable, rearrangeable, and sustainable capabilities through its primary "sactional" (its word for sectional) product line, The Lovesac Co. (LOVE 0.91%) is a truly unique business.

The company provides an incredible value proposition to its customers, considering that 966 plastic bottles go into the upholstery fabric for each infinitely rearrangeable Lovesac sactional. Looking at the company's sales figures over the last few years, it is clear that this proposition is resonating within its customer base.

LOVE Revenue (TTM) Chart

LOVE Revenue (TTM) data by YCharts

Best yet for investors, Lovesac turned profitable on an earnings-per-share basis in late 2020 and has yet to look back. However, despite this newfound, growing profitability, the market has rebuked the company's progress as it continues to sell off almost any growth stock reporting less than perfection.

Thanks to this 62% drop in share price over the last six months, Lovesac trades at a tantalizing valuation despite growing sales by 55% in 2021.

LOVE PE Ratio Chart

LOVE PE Ratio data by YCharts

Having grown its new customer count from 38,000 in 2015 to 120,000 in 2022 while nearly tripling its lifetime customer value to $2,800 over the same time, this price-to-earnings ratio at 11 and a price-to-sales ratio below one look very tempting. 

As the company continues to roll out its unique shop-in-shops and small showrooms across the United States, Lovesac could quickly outgrow this meager valuation, powered by its incredible customer lifetime value-to-customer-acquisition-cost ratio of 5.2.