3 High-Growth Stocks With Multibagger Potential by 2025


  • These potential multibagger high-growth stocks are ripe for the picking.
  • Occidental Petroleum (OXY): Despite more than doubling this year, shares are almost obscenely cheap.
  • Target Hospitality (TH): The company is securing contracts that should continue to boost growth.
  • Marathon Oil (MRO): The energy stock’s total return growth potential is worth considering.
high-growth stocks - 3 High-Growth Stocks With Multibagger Potential by 2025

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From a strictly mathematical perspective, finding multibagger high-growth stocks is much easier to do in a bear market than in a bull market. That’s because depressed stock valuations offer investors better entry points and, thus, the chance for higher potential gains when stocks eventually rebound.

Of course, after the beating investors have taken in 2022, it’s only natural they would be more risk-averse than usual. As one trader put it, “The stock market is the only market where things go on sale and all the customers run out of the store.”

For traders who are looking to put some capital to work in potential multibagger high-growth stocks, start with the three companies below. Each generates solid cash flow, sports a strong balance sheet, and has tailwinds that should carry its shares higher over the near, medium and long term.

OXY Occidental Petroleum $71.46
TH Target Hospitality $12.87
MRO Marathon Oil $31.30

Occidental Petroleum (OXY)

Person holding cellphone with logo of American company Occidental Petroleum Corp. (OXY) on screen in front of website. Focus on phone display. Unmodified photo.
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First on my list of multibagger high-growth stocks to buy is Occidental Petroleum (NYSE:OXY). I’ve been bullish on the oil and gas producer for quite some time, and for good reason. This company is essentially a cash flow machine, producing record profits as energy prices soared. It’s also one of the best value stocks on the market, trading at just 7.3 times earnings despite the 144% advance in shares this year.

OXY has attracted the attention of Warren Buffett. The Oracle of Omaha has been buying shares hand over fist. At last count, he owned a nearly 21% stake in the company. And if that’s not enough to convince you to buy shares, Occidental’s financials should do the trick.

The company reported four consecutive quarters of record earnings through Q2 2022. For the third quarter, the company reported $2.5 billion in profits, nearly 300% higher compared with the same quarter last year. Q3 revenue was up nearly 40% to $19.5 billion. These are the kind of numbers you might expect from a tech company.

For the full year, analysts expect Occidental will pump out $9.94 per share in earnings. That would represent an increase of 290% over 2021. And they forecast revenue will jump 43% to $37.6 billion.

For investors looking for multibagger high-growth stocks, Occidental is a no-brainer.

Target Hospitality (TH)

AHT stock: the front of a hotel with ornate columns
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Target Hospitality (NASDAQ:TH) offers investors exposure to a unique business model in the rental real estate market. The company owns, constructs and operates a wide range of rental accommodations, including hotels and temporary housing units, primarily serving the energy and government sectors. It also provides hospitality services, such as culinary, concierge, laundry and security services, in addition to recreational facilities.

TH stock is up more than 260% so far this year. Much of this can be attributed to the massive run-up in shares in early July. This followed news that the company expanded its lease and services agreement with the U.S. government to provide support for around 6,400 displaced people, about 60% more than the original contract. More recently, the company secured an exclusive 11-year partnership with a national nonprofit to continue providing critical humanitarian services for the Expanded Humanitarian Community.

For the third quarter, Target Hospitality saw revenue surge 79% year over year to a record $159.6 million. Net income was up 184% from a year ago to $19 million. For the full year, analysts forecast revenue growth of nearly 71% to $497.8 billion. And they’re calling for EPS to swing from a 5-cent loss in 2021 to 93 cents in 2022 and $1.80 in 2023. 

At present, shares sit nearly 18% below their 52-week high, providing a great buying opportunity. TH stock isn’t recession-proof, but I think it will provide mutlibagger returns for investors over the long term.

Marathon Oil (MRO)

Marathon Oil Logo at the top of a mobile device.
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It’s no mistake that Marathon Oil (NYSE:MRO) is the second major oil producer on this list of multibagger high-growth stocks. Shares are up more than 90% this year thanks in large part to the company’s massive profit growth.

Yet, even with this big run-up, I’m not sure energy names like Occidental and Marathon get enough love as growth plays. Perhaps that’s because their low valuations are so low. Trading at only 6.3 times earnings, MRO is even cheaper than OXY (likely due to OXY’s Buffett premium).

MRO also offers a higher forward dividend yield at 1.1% versus 0.7% for OXY. However, I could easily see both companies paying out a special dividend in the near future given how much cash they are raking in. For its part, Marathon has grown its earnings by more than 60%, on average, over the past five years.

Investors are likely to continue to reward Marathon’s impressive growth.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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