There are plenty of great stocks out there. Finding at least a couple that look like appealing buys at any given time has never been a problem.
However, finding stocks that you can credibly expect to quintuple in value in just a few years is a different story. Gains of that scope aren't unheard of, but they're hardly the norm. To make those sorts of picks generally requires a "right time, right place" scenario.
With that in mind, I view these three names as having the potential to turn a $1,000 investment now into $5,000 by 2030. Just bear in mind you're taking above-average risks for the chance to reap above-average rewards.
1. Dutch Bros
You may not be familiar with Dutch Bros (BROS 6.67%) yet -- but give it time. By the early 2030s, the chain of coffee shop drive-thrus aims to be more than four times bigger than it is right now.
There were 831 Dutch Bros locations up and running as of the end of last year, thanks to the 159 new sites it opened in 2023. That's just the beginning, though. The longer-term goal is as many as 4,000 stores within the next 10 to 15 years. The company plans to add between 150 and 165 new locations this year alone.
NYSE: BROS
Key Data Points
This sounds ambitious, particularly given the dominance of Starbucks, which already manages more than 16,000 coffee shops in the United States alone. How can Dutch Bros realistically expect to grow that quickly in the shadow of such a well-established player?
The answer is by being everything Starbucks isn't. Not only is Dutch Bros strictly a drive-thru operation, but in contrast with Starbucks' companywide uniformity, each Dutch Bros has its own unique personality. The company is also community-oriented -- it's not uncommon for its stores to participate in local fundraisers. Employees' attire is casual as well.
There was a time when this less-than-consistent, un-uniform presence wouldn't have been marketable. Consumers' tastes and expectations are changing, however. Authenticity sells, and there's no denying Dutch Bros is authentic.
The kicker: This young coffee chain has one extra competitive advantage. Its CEO, Christine Barone, held a variety of leadership positions with Starbucks. She most definitely knows the business, and how Dutch Bros' top competitor operates.
2. DraftKings
Given that the stock is already up nearly 300% from its late-2022 low, it might be difficult to believe DraftKings (DKNG +0.12%) has room to quadruple in value by 2030. Sports betting is already legal in most U.S. states, after all. How much more growth is left to tap?
That line of thinking, however, ignores a handful of important details.
First, while the American Gaming Association reports that at least some forms of sports wagering are now legal in 38 states, that doesn't necessarily mean that online or mobile sports betting -- DraftKings' core business -- is permitted in all of those states. The DraftKings app is only legal in 24 states so far. However, seven more states are considering expanded sports wagering legislation right now. Online legalization tends to follow offline legalization, and mobile follows that.
In the meantime, the U.S. sports wagering market (in any form) is still relatively immature wherever it's allowed. The Supreme Court only struck down the sweeping federal ban on sports wagering in 2018. Even in states where the legalization hurdles have been cleared, there's still a lot of marketing and consumer education that needs to be done.
NASDAQ: DKNG
Key Data Points
Second, while a great deal of attention has been given to the ongoing legalization efforts within the United States, this country isn't DraftKings's only market. It has an operating presence in a handful of European countries as well, for instance, where interest in wagering is just as strong, and may soon be entering more international markets.
Third, while its roots are in the fantasy sports arena and it has made a name for itself as a sportsbook in the meantime, sports wagering isn't the whole of DraftKings' business any longer. It's also easing into conventional online casino games, leveraging its respected brand as well as its ever-growing user base, with 7.1 million regular users of its app at last report.
Whatever the mix, the backdrop is decidedly bullish. Straits Research forecasts that the worldwide online sports betting market will grow at an annualized pace of 11% through 2032. Mordor Intelligence believes the overall global online gambling market will grow at an annualized rate of more than 10% through 2029. DraftKings is positioned to capture more than its fair share of this growth.
3. Roblox
Last but not least, add Roblox (RBLX 6.72%) to your list of stocks that could turn $1,000 into $5,000 by 2030.
If you know the company at all, then you most likely know it as a video gaming outfit. Roblox allows gamers to participate in a variety of online digital worlds created and managed by other gamers, where they'll enjoy a wide range of play experiences. Although it's been around for a while, the company has managed to keep its users interested by keeping its virtual worlds fresh. Last quarter's revenue was up 30% year over year, boosted by a 22% uptick in its average number of daily users. Look for comparable growth going forward. Its service just consistently clicks with consumers.
Roblox isn't just about video games, though. Its future also prominently features a different growth engine -- the metaverse.
NYSE: RBLX
Key Data Points
OK, there's no denying the metaverse as a hoped-for revolutionary new platform has not thus far lived up to the early hype. Don't give up on its potential, though. Consumers and corporations alike are still trying to figure out what they really want the metaverse to be. And corporations are still trying to figure out how virtual reality worlds can best be monetized.
Enter Roblox.
Using technology it already owns, Roblox allows brands to build their own online 3D spaces for customers. How companies choose to use these platforms is entirely up to them. Nike is using its Roblox platform mostly to offer games. Cosmetics company Urban Decay used Roblox to host a launch party for a new makeup line last year. Carmaker Hyundai showcases its vehicles and R&D within its Roblox-hosted metaverse space.
Perhaps more importantly, the metaverse industry's best days are still ahead of it. Now that practical uses for these virtual spaces are finally starting to jell, Precedence Research expects the worldwide metaverse market to achieve a compound annualized growth rate of 50% between now and 2033. Just know that most of that growth is forecast to come in just the last couple of years of that span.
