Why would you settle for the average return the stock market offers by investing in diversified indexes such as the S&P 500 or even the Nasdaq? Well, some people just don’t have the time to go hunting for the best growth opportunities out in the market. Instead, they buy an index to get exposure to whatever the market is going to do.
However, all the hunting and homework for the best stocks to double your money has been done for you. Analysts are confident the following list of companies has significant upside potential for reasons that I will soon make clear.
SoFi Technologies Inc (SOFI)
The Federal Reserve will likely start to cut interest rates later this year. According to FedWatch, they could come as soon as May or June, and is why stocks like SoFi Technologies (NASDAQ:SOFI) are on top of the list of names that could easily double your money.
SoFi is becoming millennials’ preferred choice for mortgage solutions. Although this customer base currently faces increased difficulties in affording new homes, mortgage and interest costs will fall due to rate cuts. That will bring them down to a more affordable level for this entire demographic.
Expecting this rise in demand for real estate financing through SoFi’s services, analysts are now comfortably pushing their earnings per share growth rate expectations to 242.9% in the next 12 months. Knowing what you know now, that should come as no surprise.
This stock is trading at only 78% of its 52-week high price. That means that you can pick up some exposure to this massive growth story at a ridiculous discount today. If you are looking for a stock that could double your money on a sound analyst thesis, SoFi could be first on your list.
Transocean (RIG)
You may have noticed the price of oil going up lately, hitting a monthly high of $79 per barrel this week. Analysts at Goldman Sachs are projecting a price range of $70 to $100 per barrel for 2024, which ultimately means good news for companies like Transocean (NYSE:RIG).
The company’s business model calls for the leasing and providing of all the machinery and equipment that the industry’s biggest names use, such as Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX). Thus the price of oil — and its fluctuation — have a direct impact on the revenues that Transocean reports.
These leasing contract prices are based on the oil price at the time, according to the company’s annual report. Transocean’s earnings will jump if Goldman analysts are correct.
This is one of the reasons why analysts are so comfortable pushing out their EPS growth projections for a massively explosive 231.2% in the coming twelve months. Because earnings typically drive stock prices, such a high growth rate could easily drive this stock to double your money in it.
CleanSpark (CLSK)
The crypto world is now overly excited about the upcoming Bitcoin (CCC:BTC) halving, which will likely drive its price higher than the recent rallies it has already experienced. While some may feel comfortable buying the digital currency directly, others would instead look into other, more traditional ways to gain exposure to this Bitcoin rally.
CleanSpark (NASDAQ:CLSK) is one stock perfectly positioned to double your money from the event. It operates by running Bitcoin miners to derive its earnings from not only the production of the cryptocurrency but also the selling and trading of it.
In their expectation of Bitcoin’s rally, analysts have assigned a bullish 208% EPS growth projection for the coming year in this stock. It is not too far-fetched to expect to double your money in this name knowing what you know now.
As of this writing, Gabriel Osorio-Mazzilli 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.
