This decade is still young. A lot can and will happen over the next several years. And there are plenty of opportunities for investors to make money.
No one knows for sure which stocks will be the biggest winners. However, some stand out to me as the most likely to succeed. I predict that the following will be three of the biggest monster stocks of the decade.
1. MercadoLibre
E-commerce stocks should perform well over the next few years. Fintech stocks should be huge winners as well. And stocks in emerging markets will likely deliver strong returns also. MercadoLibre (MELI 0.85%) combines all three in one fell swoop.
NASDAQ: MELI
Key Data Points
The company is the leader in Latin American e-commerce. Its e-commerce platform is especially strong in Brazil and Mexico. MercadoLibre's logistics business Mercado Envios piggybacks off of the success of its e-commerce segment.
I'm even more bullish about MercadoLibre's fintech business. Many people in Latin America don't have bank accounts. Digital payments platforms are appealing to these individuals. It's not surprising that MercadoLibre continues to enjoy exceptional momentum on this front.
Digital advertising presents another tremendous opportunity for the company. MercadoLibre CFO Pedro Arnt said in the latest quarterly update that the ads business has "plenty of upside to be captured."
Even with its tremendous success so far, MercadoLibre's market cap stands at only $65 billion. This e-commerce/fintech/emerging markets stock should grow much larger.
2. The Trade Desk
Speaking of tremendous success, The Trade Desk (TTD 3.55%) stock has soared close to 40% so far in 2023. Over the last five years, its shares have skyrocketed more than 11x.
NASDAQ: TTD
Key Data Points
Is it too late to buy The Trade Desk stock? I don't think so. There are still significant growth opportunities ahead for the digital advertising platform operator.
Currently, total global advertising stands at close to $816 billion. Around $175 billion of that amount is advertising on linear television. But the rise of connected TV (CTV) -- watching TV programs on devices connected to the internet -- is rapidly eating into the linear television market.
The Trade Desk offers the leading platform for buy-side advertising. It generated revenue in 2022 of nearly $1.6 billion, which is only a sliver of the company's addressable market. Only around 10% of that revenue was in international markets. But roughly two-thirds of global advertising spending is outside of North America.
Sure, the stock looks expensive at first glance with shares trading at 58 times expected earnings. With the huge growth prospects for the company, though, I think The Trade Desk is worth the premium.
3. Vertex Pharmaceuticals
Vertex Pharmaceuticals (VRTX 0.59%) markets the only approved therapies for treating the underlying cause of cystic fibrosis (CF). Its nearest rival is at best years away from even having a shot at advancing a CF therapy to market.
NASDAQ: VRTX
Key Data Points
Meanwhile, Vertex isn't resting on its laurels. The company is evaluating its most powerful CF therapy yet (a triple-drug combo) in late-stage testing. It's also working with Moderna to develop a gene-editing treatment for the more than 5,000 CF patients who can't benefit from existing therapies.
Vertex and its partner CRISPR Therapeutics are now one step closer to bringing a new blockbuster to market. The two companies recently completed their U.S. regulatory filing for exa-cel in treating sickle cell disease and transfusion-dependent beta-thalassemia. They're already awaiting European approval for the therapy in both rare blood diseases.
In addition, Vertex expects to wrap up a late-stage study of non-opioid pain drug VX-548 by early next year. The company thinks the drug could generate sales of more than $2 billion annually.
Perhaps even more promising, Vertex is conducting a phase 3 study of inaxaplin in treating APOL1-mediated kidney disease. This disease affects more patients worldwide than CF does. If that's not enough for you, Vertex is also leading the way in developing a potential cure for type 1 diabetes. It's still only in early stage testing, but the progress so far looks encouraging.
This biotech company is already big with a market cap of close to $86 billion. However, with its promising pipeline, Vertex could truly be a monster stock this decade.
