Luke Lango’s 10X winner keeps climbing … a slew of increased price targets … three additional hypergrowth sectors producing big winners
You’ve been watching the calendar for months.
Waiting … longing … tossing and turning at night in giddy anticipation …
And it’s finally here!
It’s National Rubber Ducky Day.
No, that’s not a joke.
January 13th is officially “National Rubber Ducky Day.”
However, before you rubber ducky fans get too full of yourself, you should know that today also is “National Sticker Day,” and “National Gluten-Free Day.”
Personally, I’m more excited for tomorrow, which is “National Hot Pastrami Sandwich Day.”
Yes, there’s a day for pretty much everything … and yes, it’s absurd.
However, there was one official “day” that took place this past Saturday that’s something to be taken seriously.
It was put on by one of the leading electric vehicle (EV) manufacturers in the world. In the celebration, the company launched a new luxury sedan, provided updates on battery and software improvements, and generally wowed the investment public — so much so that a slew of analysts raised price targets.
In response, the stock popped 16% from last Friday through Monday.
The surge also pushed Luke Lango’s Daily 10X gains in the stock to 1,554% — in less than eight months (to be fair, the speed of this 10X return is unusual, but in today’s melt-up environment, it’s clearly possible).
What exactly are we talking about?
Chinese electric vehicle company, NIO, and its official “NIO Day 2021” which occurred last Saturday.
In today’s Digest, let’s look again at what’s powering NIO and this EV trend. Then we’ll look into other hypergrowth sectors that are making investors fast, triple-digit returns.
We’ll wrap up with a way you can access seven of Luke’s favorite hypergrowth stocks immediately, free of charge.
Let’s jump in.
***The case for investing alongside megatrends
For newer Digest readers, The Daily 10X Stock Report was created back in the spring for one purpose:
Deliver to your inbox — every day the market is open — a top-notch small-cap stock pick that could rise by 1,000% or more in the long run.
NIO holds the distinction of being the first highlighted-stock from Luke to hit 10X status (the second came last month).
In NIO’s case, it’s surging on the hypergrowth of the electric vehicle sector. Here’s Luke, explaining the sources of this growth:
For starters, laws are changing.
More than 200 cities and countries across the world have a “100% clean energy” target for 2030, 2040, or 2050 — while districts on the cutting edge of green tech (like California and New Jersey) are outright banning gas car sales after 2035.
On top of that, EV technology is dramatically improving. The average range of an EV has increased 140% since 2011, with a fully-charged EV now getting as much range as a gas car at 300-plus miles.
Supply is pivoting, too, with every major automaker in the world — from Ford to GM to Bentley — making an all-out blitz into the EV category. The result will be an unprecedented surge in the number of EVs for sale over the next few years.
But, above all else, electric cars are getting cheaper. Average EV prices have dropped 70% since 2010 and are now largely on par with gas cars.
More importantly, economies of scale and technological improvements will unlock further cost reductions over the next few years, and by 2030, EVs will be substantially cheaper than gas cars.
The future here really couldn’t be any clearer.
EVs are on the cusp of fundamentally disrupting the entire multi-trillion-dollar auto market.
***But why NIO in particular out of all the EV options investors have today?
One of the reasons Luke originally picked NIO was because of its similarities to another market darling, Tesla. In fact, many consider NIO to be the “Tesla of China.”
Luke believes it’s where Tesla was back in late 2015. Here he is making the comparison:
Back in late 2015, Tesla had two premium electric vehicles, the Model S and X, with plans to launch a third, the Model 3, in the near future.
Today, NIO has two premium electric vehicles, the ES6 and ES8, with plans to launch a third, the EC6, in the near future.
Back in late 2015, Tesla’s Model S and X were the best-selling premium electric vehicles in the U.S.
Today, NIO’s cars are the best-selling premium electric cars in China, with the ES6 consistently registering as the top-selling electric SUV in China.
Back in late 2015, Tesla was developing an aura of exclusivity around its car owners which made the cars cool.
Today, NIO is leveraging things like clubhouses to develop a similar aura of exclusivity and coolness.
Back in late 2015, Tesla was testing autonomous driving and ramping delivery volume very quickly, but also running huge losses on scant profit margins.
Today, NIO has a big autonomous driving partnership with Intel’s Mobileye unit, and deliveries rose over 80% in 2019 (while net losses were wide and gross margins were negative).
The similarities are too great to ignore …
Investors who acted on Luke’s original analysis are enjoying this comparison. Here’s what NIO has done since Luke profiled it to his Daily 10X subscribers on May 27th …
Interestingly, this surge brings NIO’s market cap to $99 billion, edging out Volkswagen at $96 billion.
This makes NIO the second largest auto manufacturer in the world (in terms of market cap). So, who’s the one company ahead of NIO?
You guessed it — Tesla.
***But with such a huge run-up in the stock, is NIO now a bubble waiting to pop?
It depends on whether NIO can continue delivering bottom-line performance. But based on NIO Day 2021, the investment analyst community certainly believes there’s more upside.
As I write, NIO trades at nearly $63 dollars. Meanwhile, Deutsche Bank and Bank of America just raised their price targets to $70. Credit Suisse went to $71. JPMorgan upped it to $75. And a new coverage from Daiwa Securities puts the price-target at $100.
Now, analyst ratings and price targets can be a bit of a racket, so we wouldn’t put too much weight on them. But here’s one thing to keep in mind that could support major growth in NIO’s stock price …
The company is working on a solid-state battery, though there aren’t many details at the moment.
Solid state represents the future of batteries — they have no liquid electrolyte like typical batteries. The benefit is higher range and safety, while at a lower cost.
NIO plans to release a solid-state battery pack late in 2022. If it becomes a market leader, its current growth will likely seem small relative to the hypergrowth ahead of it.
Congrats to Luke’s 10X subscribers who are enjoying this ride. Keep holding.
***Looking wider to other hypergrowth sectors today, where is Luke finding big gains today?
The first is a sector that we’ve profiled extensively here in the Digest — solar.
Luke’s top pick, SunPower, which he calls “best pure-play on the explosive premium solar category” has doubled since he profiled it.
Here’s Luke explaining why more gains are coming:
The U.S. government will pass an enormous clean energy bill in 2021/22. Solar will be the focal point of that bill.
Specifically, that bill will likely both significantly increase and extend solar subsidies, thereby injecting a ton of political firepower into the already red-hot solar energy megatrend.
The result?
Solar is going to have a huge next few years. Solar stocks are going to soar. Perhaps none more-so than SunPower.
Moving on to another hypergrowth sector, there’s also specialty foods.
When Luke profiled his favorite play, The Very Good Food Company, back in October, he said it was on the cusp of turning into the next Beyond Meat.
Since then, the stock has surged as high as 484%.
Back to Luke:
Everything’s trending in the right direction, and 2021 is shaping up to be a big year for this breakout vegan food company.
The long-term upside potential in The Very Good Food Company stock remains very compelling.
Finally, there’s the 3D printing sector.
Luke’s highlighted stock, 3D Systems, has soared as high as 322% since his August profile.
Here’s more:
A big part of this rally happened this past week, when 3D systems stock essentially doubled overnight after the company reported strong preliminary fourth quarter numbers that broadly underscored that the 3D printing revolution has finally arrived …
Big picture: 3D Systems is growing both its top- and bottom-line much, much more quickly than Wall Street expected in a sign that the 3D printing industry is in the early stages of making a huge comeback.
If you’re looking to put money to work in a hypergrowth sector, take a look at these three corners of the market.
***And if you’re looking for even more on hypergrowth trends, as well as specific stock names poised to outperform, we have you covered
When you sign up for Luke’s free e-letter, Hypergrowth Investing, you’ll get the latest news on the cutting-edge breakthroughs that will reshape our world over the coming years.
Plus, just for signing up, you’ll get Luke’s special report “7 Hypergrowth Stocks to Buy for 2021” — it’s yours free. Just click here.
A final congrats to Luke’s 10X subscribers who are up 1,500%+ in NIO. At the current pace of growth, 2,000% isn’t far away.
Have a good evening,
Jeff Remsburg
