7 Growth Stocks That Could Turn $10,000 into $70,000 by 2028


  • These are the growth stocks to buy for seven bagger returns within the next five years
  • DraftKings (DKNG): A big addressable market for online sports betting & iGaming and the Company is moving towards profitability.
  • Li Auto (LI): Stellar growth in vehicle deliveries that’s backed by new models and aggressive retail expansion in China.
  • EHang Holdings (EH): Receiving certification from the aviation authority for operations in China and focusing on global expansion for eVTOL aircraft sales.
  • Keep reading for more growth stocks to buy ideas!
growth stocks - 7 Growth Stocks That Could Turn $10,000 into $70,000 by 2028

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If the investment objective is to make millions from the market, it’s essential to remain equal weight or overweight on growth stocks. A good selection of blue-chip stocks can offer returns that consistently beats the index. However, 5x or 10x returns in relatively quick time does not come from the big companies. It’s the growth stories that are massive value creators.

In my personal view, for investors who are starting early, exposure to growth stocks can be even 60% to 70% of the portfolio. Of course, I am not talking about speculative ideas. The focus should be entirely on high-quality growth stocks that can be cash flow machines in the next five years.

This column discusses seven growth stocks to buy that can deliver seven-bagger returns by 2028. The most important aspect is to hold with patience during this time horizon. A sharp decline in holding period is one reason for investors missing dozens of multibagger growth stories.

DraftKings (DKNG)

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DraftKings (NASDAQ:DKNG) stock has surged by 132% in the last 12 months. The rally has been on the back of positive business developments. With a big addressable market and shift towards profitability, I am bullish on the long-term outlook for DKNG stock.

To put things into perspective, DraftKings expects the total addressable market (from existing states) to be $30 billion by 2028. As online sports betting and iGaming is legalized in other states, the market size will continue to swell.

Another point to note is that cash burn was a major concern for the Company. However, that headwind seems to have been addressed. For 2024, the Company has guided for revenue and EBITDA of $4.8 billion and $460 million respectively. Further, DraftKings expects free cash flow of $310 to $410 million for the year.

I must add that the Company expects to increase adjusted EBITDA to $2.1 billion by 2028. This estimate is assuming operations in existing states. It’s entirely likely that EBITDA will be higher than this initial estimate. Therefore, with a bright outlook, I expect DKNG stock to remain in an uptrend.

Li Auto (LI)

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Li Auto (NASDAQ:LI) is a high conviction pick from growth stocks for multibagger returns. At a forward price-earnings ratio of 17.2, LI stock looks massively undervalued considering revenue growth of over 100%.

An important reason to like Li Auto is robust financial flexibility. As of Q4 2023, the Company reported a cash buffer of $14.6 billion. Further, for Q4 2023, Li reported free cash flow of $2 billion. Considering the growth trajectory, annual FCF is likely to be more than $10 billion. Therefore, high financial flexibility will support the Company’s aggressive retail expansion within China. Further, the Company can continue to invest heavily in product development and innovation.

In March, Li Auto officially launched LI MEGA. The new EV is likely to boost deliveries growth in the coming quarters. After clocking annual delivery of 376,030 vehicles last year, Li has set an ambitious target of delivering 800,000 cars in 2024. Given the financial resources, I also expect international expansion. This will be another catalyst for growth acceleration.

EHang Holdings (EH)

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After an extended period of correction, EHang Holdings (NASDAQ:EH) stock has surged by 50% in the last one month. The rally was impending and I believe that multibagger returns are likely in the next few years.

The flying car industry is at a nascent stage. Early-movers are likely to be massive value creators. EHang has made significant progress and is poised for stellar growth. After receiving certification from the aviation authority, EHang successfully completed debut commercial flight demonstrations in Guangzhou and Hefei in December 2023.

The Company has also unveiled EH216-S pilotless passenger-carrying eVTOL aircraft for global markets. The pricing is at $410,000. It’s worth noting that EHang has conducted trial flights in multiple Asian and European countries. In UAE, Wings Logistics Hub will purchase 100 EH216 series eVTOLs from EHang. I expect healthy backlog for the eVTOL aircraft in the next 24 months.

Lithium Americas (LAC)

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Lithium Americas (NYSE:LAC) is another stock that has surged in the last one month. This comes after an extended period of correction that was in-sync with the plunge in lithium price. The good new is that the rally is backed by a major fundamental development.

Coming to the big news, the U.S. Department of Energy has approved a $2.26 billion loan for the development of the Thacker Pass project. This will support financing of construction of the first phase of production and commercialization in 2027. It’s worth mentioning that the Company has already received $650 million from General Motors (NYSE:GM). Therefore, the path seems clear towards commercialization.

In terms of asset potential, Thacker Pass has a mine life of 40 years and an after-tax net present value of $5.7 billion. The average annual EBITDA from the asset is expected at $1.1 billion. Therefore, the mine is a cash flow machine and once lithium trends higher, I expect LAC stock to go ballistic.

Riot Platforms (RIOT)

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Given the year-to-date surge in Bitcoin (BTC-USD), it’s difficult to ignore crypto stocks. Riot Platforms (NASDAQ:RIOT) is a fundamentally sound Bitcoin miner that looks undervalued and positioned to deliver multibagger returns.

From a financial perspective, Riot has a zero-debt balance sheet. Further, the Company reported $908 million in cash (including digital assets). Therefore, Riot has high financial flexibility for expansion in the coming years.

As a matter of fact, Riot is already targeting aggressive hash rate capacity expansion. As of 2023, Riot reported hash rate capacity of 12.4EH/s. By the end of the year, the Company expects to increase capacity to 31.5EH/s and further to 40.8EH/s by the end of 2025.

The long-term target is to increase self-mining capacity to 100EH/s. This would imply multi-fold growth in revenue and cash flows. If Bitcoin continues to trend higher, the business is likely to be a free cash flow machine.

Miniso Group Holdings (MNSO)

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Miniso Group (NYSE:MNSO) stock looks significantly undervalued at a forward price-earnings ratio of 16.7. The growth stock also offers a healthy dividend yield of 1.99%. With aggressive expansion, I am bullish on Miniso and I believe that the stock is likely to be a massive value creator.

As an overview, Miniso is a global lifestyle retailer. The Company differentiates itself through quality at an affordable price. At the same time, Miniso has a dynamic product portfolio with frequent roll-outs that supports growth.

An important point to note is that the Company has been expanding its retail presence at an aggressive pace. As of Q2 2024, the Company reported 6,413 stores globally. On a year-on-year basis, the number of stores increased by 973. This is another factor that supports stellar growth.

For Q2 2024, Miniso reported revenue growth of 54% on a year-on-year basis to $541 million. For the same period, the Company reported a 200-basis points expansion in EBITDA margin to 25.9%. Supply chain optimization coupled with favourable product mix has helped in boosting margins.

Curaleaf Holdings (CURLF)

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Among cannabis growth stocks, Curaleaf Holdings (OTCMKTS:CURLF) looks like an interesting story to buy and hold. With strong presence in the United States and expanding presence in Europe, the Company has a big addressable market to pursue aggressive growth.

It’s worth noting that for 2023, Curaleaf Holdings reported muted revenue growth of 6% to $1.35 billion. However, there are two positives. First, Curaleaf reported healthy adjusted EBITDA margin of 23% and operating cash flow of $91.2 million.

Further, Curaleaf believes that 2024 will be a “catalyst year.” Therefore, I expect revenue and EBITDA growth to accelerate, which is likely to take CURLF stock higher.

The view on growth acceleration is underscored by the point that Curaleaf reported international revenue of $16 million in Q3 2023, which was higher by 120% on a year-on-year basis. With focus on medicinal cannabis in the European markets, the growth outlook is likely to remain stellar.

I also like the fact that Curaleaf has strong focus on research and development. For 2022, the Company launched 122 new products. With new products being launched on an ongoing basis coupled with entry into new markets, Curaleaf is at a growth inflection point.

On the date of publication, Faisal Humayun did not hold (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.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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