3 Stocks Bard Predicts Will Deliver Triple-Digit Returns

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  • Bard believes these three stocks can deliver triple-digit returns. Let’s see why and explore their pathways to triple-digit gains.
  • CrowdStrike (CRWD): This company’s upside is dependent on a positive sentiment shift for cloud stocks.
  • SentinelOne (S): Swinging to profitability, supported by massive growth projected over the next decade.
  • Shopify (SHOP): Near-term volatility has not eroded long-term tailwinds.
bard - 3 Stocks Bard Predicts Will Deliver Triple-Digit Returns

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When it comes to using artificial intelligence models to pick winning stocks, I think Bard stands head and shoulders above the rest. While other large language models tend to make more generalized stock recommendations, Bard appears to provide real analysis, digging deeper to identify trendy high-growth companies poised for exponential returns. This laser-focus on trends and momentum in the market is why Bard has consistently outperformed its AI peers in stock picking tests, albeit over short time frames.

Now, many investors are skeptical of “black box” AI stock pickers, given the opacity behind their selections. Even the highest conviction picks provided by such models carry risks. However, by leaning on Bard’s insights while also applying our own due diligence, we can make informed decisions on stocks that balance risk and reward. The companies profiled in this article offer an enticing asymmetry of capped downside but uncapped upside potential.

In today’s article, I will share Bard’s current predictions for three stocks it believes can generate triple-digit returns in the coming years. As always, these are Bard’s picks for research purposes only and aren’t my direct recommendations.

CrowdStrike (CRWD)

A sign with the Crowdstrike (CRWD) company logo
Source: VDB Photos / Shutterstock.com

Bard: “CrowdStrike (NASDAQ:CRWD) is a cybersecurity company that provides cloud-based security software. The company has been growing rapidly, with revenue increasing by 36% in the most recent quarter. CrowdStrike is still a relatively small company, with a market capitalization of just $42 billion. However, the company is growing rapidly and is well-positioned to benefit from the increasing demand for cybersecurity solutions.”

Personally, this is not a stock I’d usually pick for doubling in the near future. Cloud cybersecurity companies already trade at massive premiums, so doubling that premium would make CrowdStrike unreasonably expensive compared to future growth estimates. The downside risk here is considerable, in my view.

That said, I don’t think current investors in CRWD stock should sell their positions. The company still has positive momentum thanks to its first-mover advantage in cloud endpoint security. Its platform approach also provides a wide competitive moat.

So who knows? Perhaps Bard is right, and the cloud craze makes a comeback, propelling CrowdStrike’s valuation higher. But for now, I disagree with Bard’s bullish call on CRWD stock.

SentinelOne (S)

The logo for SentinelOne (S) is seen on on an office building.
Source: Tada Images / Shutterstock.com

Bard: “SentinelOne (NYSE:S) is another cybersecurity company that is growing rapidly. The company’s revenue increased by 46% in the most recent quarter. SentinelOne is still a relatively small company, with a market capitalization of just $4.5 billion. However, the company is well-positioned to benefit from the increasing demand for cybersecurity solutions.”

Unlike Crowdstrike, I’m very bullish on cybersecurity upstart SentinelOne. Yes, broader cybersecurity valuations are stretched, but SentinelOne looks like an outlier. The company is expected to swing to profitability next year and continue to see massive revenue and earnings growth over the next decade.

SentinelOne also has a solid balance sheet, with $732 million in cash against only $25 million in debt. Looking ahead, I see substantial earnings growth, with 2033 estimated earnings putting the company’s forward price-earnings ratio at just 4.2-times. Additionally, SentinelOne’s market cap also nearly matches analysts’ estimated 2033 revenue.

This is far better than CRWD’s estimated 2033 price-earnings ratio of 10-times and price-sales ratio of 2.4-times. SentinelOne clearly has the financial profile that could justify a doubling in valuation from current prices. Thus, I agree with Bard that this cybersecurity disruptor offers uncapped upside. Wall Street analysts believe it can deliver a 22% upside over the next year alone.

Shopify (SHOP)

Shopify on the phone display.
Source: Burdun Iliya / Shutterstock.com

Bard: “Shopify (NYSE:SHOP) is a cloud-based e-commerce platform that provides merchants with everything they need to start and grow their businesses. The company has been growing rapidly, with revenue increasing by 31% in the most recent quarter. Shopify is still a relatively small company, with a market capitalization of just $60 billion. However, the company is well-positioned to benefit from the continued growth of e-commerce.”

In my view, the e-commerce sector has faced lots of turbulence in the post-pandemic era. The incredible growth many platforms saw in 2021 has faded over the past two years. As recent as it may feel, 2020 was three and a half years ago now, and e-commerce valuations have cratered since then.

In my opinion, the bearish sentiment around e-commerce and fintech stocks has been overdone, though. I believe e-commerce is just going through a turbulent period following the COVID boom years, but the long-term trajectory remains intact. For better or worse, more consumers are clearly choosing online shopping over brick-and-mortar, positioning e-commerce platforms as the biggest beneficiaries of this megatrend over the coming decades.

With that in mind, I agree with Bard that Shopify can potentially double over the next few years, especially if it can return to 30%+ annual revenue growth this decade. The company dominates e-commerce software, and its merchant base is incredibly loyal. Shopify also has levers to expand gross margins through upselling merchants to payments, fulfillment, and other services. According to consensus Wall Street estimates, the one-year upside potential with SHOP stock is 43%.

On the date of publication, Omor Ibne Ehsan 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.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-stocks-bard-predicts-will-deliver-triple-digit-returns/.

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