Do you want to become wealthy? Getting rich just for the sake of being rich isn't a meaningful goal in and of itself. However, if you're going to put your hard-earned dollars at risk in an effort to build a retirement fund or leave a nice inheritance for your kids, you may as well try to maximize your returns. The trick is to balance risk with potential reward.
Here's a closer look at three stocks with serious near-term and long-term potential to properly enrich your retirement fund. Most investors might want to add at least one of them to their portfolio before the end of this year, with plans on sticking with these trades for a long, long time to capture the full reward.
1. SoFi Technologies
It's no stretch to say the advent of the internet -- and mobile broadband in particular -- changed the world. Indeed, for many people the World Wide Web is at the core of their work, their entertainment, and even their social connections.
This digital evolution hasn't excluded the banking business either. The American Bankers Association reports 48% of U.S. bank customers handle most of their banking business via an app, making it the most preferred means of taking care of banking-related matters. The second-most-used option? Their bank's website-based self-service tools at 23%. Insider Intelligence reports that 89% of U.S. bank customers now at least occasionally access a mobile banking app. An outlook from market research outfit Technavio suggests the global digital banking market is set to grow at an annualized pace of 14.5% through 2026, led by its proliferation in North America.
The only problem? The digital banking industry is highly fragmented. Every major brick-and-mortar bank seems to have an entry in this race, in addition to several online-only banking entities.
Enter SoFi Technologies (SOFI 3.69%).
It's not exactly a household name -- at least not yet. Give it time though. This online-only bank now boasts more than 6.9 million customers, up 46% from year-ago levels of 4.7 million, which was 61% higher than the year-earlier comparison of more than 2.9 million. Revenue and operating profits are growing accordingly.
The key to this growth is largely rooted in how the company was founded. Whereas most banks' websites and apps look and feel like afterthoughts, SoFi was built from the ground up to be an online bank, which younger consumers don't mind. In fact, not being a traditional banking name like Wells Fargo or Bank of America may be advantageous. Millennials and Gen Zers don't have a great deal of faith in the banking industry's mainstays that their parents tended to do business with. They're looking for alternatives like SoFi.
2. Intel
Computer tech giant Intel (INTC -9.20%) was once royalty. It and Microsoft led the world into the era of personal computers and for years the two had no rivals ... or even peers.
But times change. Outfits like Nvidia and Advanced Micro Devices found their full stride, while Intel itself bumped into the inevitable challenges of being the biggest name in the computer processor business and lost its competitive edge. That's why shares are priced where they were as of late 2017, and still trade below their peak reached all the way back in 2000.
Don't be too quick to jump to conclusions based on the stock's long-term performance or the naysaying headlines persistently surrounding this company, however. Despite a variety of challenges, Intel is still a juggernaut.
Admittedly, this year's top line is projected to be nearly 22% lower once Intel reports its fourth-quarter numbers. That's going to cut earnings approximately in half.
Take a step back and look at the bigger picture though. This has been a tough year for tech in general, crimping consumer (and corporate) demand for processors and related chips. Technology market research firm Gartner projects worldwide semiconductor sales will fall to the tune of 11% this year. But a recovery is in the cards after that. Gartner estimates global semiconductor market's revenue will grow more than 18% in 2024, rekindling its long-term growth trend. Intel should be able to plug into this rising tide, with analysts calling for sales growth of more than 13% in the coming year.
This growth of course is being driven by the ever-rising need for data centers, which require computer processors like the ones Intel manufactures. Technavio estimates the data center hardware market will grow by an average of more than 9% per year through 2027. In this vein, know that Intel is still the king of the data center hardware market. Although its share doesn't always grow, Intel's processors do reliably account for around two-thirds of global computer processor sales.
3. Brookfield Renewable
Last but certainly not least, add Brookfield Renewable (BEPC 0.09%) to your list of unstoppable stocks that could help make you rich if just given enough time.
It's classified as a utility stock, but don't let this categorization fool you. This company isn't just another slow-moving power provider. Brookfield Renewable represents the future of the electricity-production industry. In addition to owning several hydroelectric, wind, and solar power plants all over the world, the company also owns a variety of energy infrastructure and transportation platforms. It's even a private equity outfit, offering capital to start-ups in the renewable energy space. However, its overarching value to shareholders is the renewable energy expertise it brings to the table.
There's never been a more important time to be an expert in this space either. Fossil fuels are facing more political and social pressure than they ever have in the past now that cleaner alternatives are proving viable. Analysts with Global X ETFs expect non-hydro renewable power production capacity to nearly triple between the end of last year and 2032, from a little over 2,000 gigawatts now to more than 6,000 gigawatts then. In this same vein, Precedence Research predicts the renewable energy market's revenue itself will more than double during this same 10-year stretch. That makes it the planet's fastest-growing source of electricity by a country mile.
This tailwind hasn't proven all that supportive of late for the stock, which is still down by more than half of its early 2021 high, and still close to its record low reached just last month. With revenue expected to grow more than 14% next year while the dividend yield is above 5%, however, this ticker offers a combination of above-average income and good long-term growth prospects for newcomers willing to step in here.
