A lot of bad stocks have taken it on the chin in recent months -- but the same can be said about a lot of good stocks, too. Now, there are plenty of potential winners in the rubble, and you don't need a lot of money to start building positions in companies that could lead the way upward in the next bull market.
Wondering which ones to pick? Well, I think Roku (ROKU 4.17%), Velo3D (VLD 1.83%), and SeaWorld Entertainment (SEAS 1.83%) could triple in the next 10 years, and investing $1,000 in each of them could help you stay ahead of the market.
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1. Roku
This streaming video powerhouse has been one of the hardest hit growth stocks on the market -- its shares are now down 89% from their summer 2021 peak. If it tripled from here, it would still only be trading at a third of its all-time high, and you have to like Roku's chances to get things right over the next 10 years.
Roku is still growing. As of the end of the second quarter, its user base was a company-record 63.1 million, and 14% higher than it was a year earlier. And the number of hours of video streamed through its platform was up by 19% year over year, so the average active Roku user is streaming more -- not less -- than they were in 2021. Its ad revenue per user also inched higher in Q2, but its growth streak on the score will inevitably end when it reports its Q3 financials next week.
Roku's latest guidance was problematic, and these are challenging times. It faces supply chain issues and cutthroat competition on the hardware end. We've already seen numerous ad-supported businesses take a hit this earnings season due to the wobbly economy. But these shouldn't be long-term obstacles, and there are also positive developments. A few streaming services are increasing their prices, and those moves will likely be accompanied by increases in ad spending. Roku is down, but it is most definitely not out.
2. Velo3D
Another way to triple your money over 10 years is to find and invest in a company with high potential that's still early in its growth cycle. Velo3D fits the bill. The 3D printing company serves the aerospace, aviation, industrial power, and oil and gas industries. Its Sapphire line of metal printers helps companies with mission-critical businesses create replacement parts for their equipment faster and more cost-effectively than waiting for a third-party vendor to come through.
Velo3D is small -- its market cap is just $700 million, and it only has $51 million in trailing revenue. But growth is the reason why you pay a premium for a stock, and this company has it. Velo3D rang up just $27.4 million in revenue last year, and it's guiding for $89 million on the top line in 2022. It reports its Q3 results in two weeks, but meeting if not exceeding its ambitious forecast of more than tripling its revenue this year isn't going to be hard. It had 95% of its guidance either delivered or in its order backlog halfway through this year. Wall Street pros forecast that it will hit $148.1 million in revenue next year.
Even in an economic downturn, companies can't afford to have their assembly lines idled or production halted for want of a few replacement parts. Velo3D should weather this storm.
3. SeaWorld Entertainment
SeaWorld Entertainment operates a handful of theme parks and water parks across the country. It may not seem like an exciting business, but folks are willing to pay up for thrills and escapism these days. Attendance is nearly back to where it was three years ago, before the pandemic-necessitated shutdowns. Attendance in the second quarter was 3% below where the turnstile clicks were in 2019, but its revenue and net income were 24% and 121% higher, respectively. And per capita revenue was up by 28%.
How did it boost its revenue per guest so far? Theme parks as a class have beefed up their premium offerings, and it doesn't hurt that SeaWorld's rivals have been jacking up their prices. Disney (DIS 1.76%) -- a direct competitor of SeaWorld in Florida and California -- has been making a big push to make more money with fewer guests, which has alienated the locals who used to buy its annual passes. Among the regional amusement park operators, Six Flags (SIX 0.08%) is trying to do the same. Six Flags competes with SeaWorld Entertainment in Texas, and has parks not too far from SeaWorld-owned attractions in California, Virginia, and Pennsylvania. SeaWorld is benefiting from a strategy of catering more to the locals who are being neglected by its higher-aiming rivals, and it has still been able to increase margins and prices.
