3 Stocks That Could Possibly Turn $10,000 Into $50,000 by 2025

Turning $10,000 into $50,000 by 2025 -- which is only two years away -- is a tall order. Is any particular stock guaranteed to grow in value like that? Not at all. But some will do so. Meanwhile, many stocks that don't quintuple in value in two years may very well quintuple over the next decade or two. And that's pretty good, too.

To quintuple in two years, a stock would need an average annual growth rate of about 124% -- when the overall stock market's average annual gain over many decades is close to 10%. Quintupling in a decade still trounces the market's average, as it involves growing by about 17.5% annually.

So to be clear, I'm not saying that these three stocks are definitely going to take $10,000 and turn it into $50,000. In my view, they could potentially quintuple in two years, and are more likely to do so given more time. It's much more likely that their share prices will rise at a brisk but lower rate, which can still reward shareholders well.

1. Paycom Software

Paycom Software (PAYC 1.24%) recently sported a market value near $19.5 billion, so quintupling would take that to nearly $100 billion. Is that reasonable? Well, it's certainly possible -- if it outperforms recent expectations, which call for annual growth over the coming five years in the neighborhood of 22%. The stock does look undervalued, with a recent price-to-sales ratio of 12, well below its five-year average of 20, and a forward price-to-earnings (P/E) ratio near 42 -- also well below its five-year average.

Paycom, like Automatic Data Processing and some other companies, profits by offering companies software to help them manage their payrolls and other functions, such as human resources. Its "Beti" platform lets employees themselves do their own payroll, though, finding and fixing errors early, which can save companies a lot of money.

The company has been growing at a good clip, with first-quarter revenue up 28% year over year and generally accepted accounting principles (GAAP) net income up 30%. Trailing-12-month revenue is up 75% since 2020, while earnings per share (EPS) have more than doubled. The company has a lot of room to grow and is expanding internationally, too. CEO Chad Richison noted, "Results for the first quarter of 2023 were excellent, with robust revenue growth from new clients and expanding margins, as demand for automation and our easy-to-use HCM solutions continues to increase... "

2. Aptiv

If you think electric vehicles are exciting and have a great future, you should get to know Aptiv (APTV 1.54%). CEO Kevin Clark has explained that "Aptiv is a technology company that will usher in the next generation of active safety, autonomous vehicles, smart cities, and connectivity. We bring decades of experience in solving our customers' most difficult challenges with the spirit and ingenuity of a start-up." You may have known it by a previous name: Delphi Automotive.

Aptiv is growing briskly, with its first quarter delivering record GAAP revenue of $4.8 billion, up 15% year over year, near-record bookings, and GAAP net income double the year-ago level. And that's despite a prevailing chip shortage and inflation-driven challenges. Aptiv's customers have included General Motors, Ford Motor Company, Tesla, and Stellantis (which owns the Jeep and Dodge brands) -- along with some 20 other major automakers.

Aptiv's market value was recently $27 billion, so quintupling would put it around $135 billion. Its shares look undervalued at recent levels, with a price-to-sales ratio of 1.5 trailing its five-year average of 1.9 and a forward P/E of 23 below its five-year average of 27.

3. Redfin

Redfin (RDFN 8.49%) is a major player in the online real estate realm, running "the country's No. 1 real estate brokerage site." With a recent market value near $1.2 billion, quintupling would take Redfin to about $6 billion (which would still be far below Zillow's recent value of nearly $11 billion).

You may know Redfin as a website offering gobs of home listings, but it also offers brokerage services, arguably upending industry traditions by charging listing fees as low as 1% -- "less than half of what brokerages commonly charge." It claims to have saved its customers in U.S. and Canadian markets more than 100 markets more than $1.5 billion in commissions.

Redfin's stock has crashed nearly 90% from its high in early 2021, but there's plenty of reason to be optimistic about its future. For one thing, its shares seem quite undervalued, with a recent price-to-sales ratio of 0.6, well below its five-year average of 3.2. The real estate market is also sluggish at the moment, in part due to inflation and higher interest rates. But those are likely to be temporary headwinds, and when the market rebounds, Redfin's fortunes should change.

It's not performing so badly right now, either -- its first-quarter results featured a big drop in revenue due to the challenging times but also had a smaller-than-expected net loss of $61 million, which was smaller than the year-ago loss of $90 million. Management projects that the company will be turning a profit by the end of 2023.

These are just three of many promising stocks out there. A little digging will turn up more candidates for your portfolio. And remember -- for best results growing your wealth as quickly as possible, aim to contribute hefty sums to your investing accounts regularly -- and hang on to promising investments for at least a few years.