7 Growth Stocks to Buy Now for 20X Returns by 2030


  • Li Auto (LI): LI is among the best EV companies in China, with strong financial flexibility and healthy growth backed by the launch of new cars.
  • DraftKings (DKNG): A big addressable market for iGaming and online sports betting with margin improvement makes DKNG a buy.
  • Cronos Group (CRON): CRON has a strong cash buffer and is expanding into new geographies. That will help accelerate revenue growth.
  • Keep reading to discover more growth stocks to buy!
growth stocks to buy - 7 Growth Stocks to Buy Now for 20X Returns by 2030

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The single biggest quality of an investor that can make him/her a millionaire is patience. With some research, it’s not difficult to spot quality growth stocks to buy. However, I see that investors are increasingly tempted to sell after 100% or 200% gains and make a switch to another stock. However, investors who buy and hold with patience mint money in the long term. It’s a matter of trade-off between instant and delayed gratification.

It’s worth noting that the markets have been in an uptrend. With the possibility of multiple rate cuts in the next 18 months, the rally is likely to sustain, amidst volatility. In my view, it’s a good time to consider exposure to high-quality growth stocks. There is likely to be a period of sharp uptrend for these growth stock ideas in the coming quarters.

Of course, there will be phases of correction. I, however, believe the companies discussed will continue to create value through 2030. With visibility for healthy revenue growth coupled with cash flow upside, these growth stocks to buy are poised for multi-fold returns.

Li Auto (LI)

Li Auto (Li Xiang) brand logo and electric car in store. A Chinese EV(electric vehicle) company
Source: Robert Way / Shutterstock.com

Li Auto (NASDAQ:LI) has corrected after weak Q1 2024 results. In my view, this is a good opportunity to buy, and LI stock looks attractive at a forward price-earnings ratio of 15.

It’s important to note that the industry faces macroeconomic headwinds, and intense competition has impacted growth. However, Li Auto, with strong fundamentals and focus on innovation, will likely survive and gain market share. For Q1, the company reported R&D expenses of $422 million. That would imply an annual R&D investment of more than $1.5 billion.

An important point to note is that Li ended Q1 2024 with a robust cash buffer of $13.7 billion. Therefore, there is ample flexibility to invest in product development and continued retail expansion in China.

I also like that Li Auto has continued to focus on one market. There is ample headroom for growth within China, the largest EV market in the world. Of course, global expansion is a likely next step forward. When that comes, deliveries growth will be supported.

DraftKings (DKNG)

DraftKings website in browser with company logo
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DraftKings (NASDAQ:DKNG) is a digital sports entertainment company with a big addressable market and positive financial metrics. The company is focused on the iGaming and online sports betting (OSB) market in the United States. Backed by positive business developments, DKNG stock has trended higher by 74% in the last 12 months. Intermediate corrections would be a good opportunity to accumulate this potential multibagger.

DraftKings expects iGaming and OSB market size to increase from $20 billion in 2023 to $30 billion by 2028. This estimate is only for existing states. As new states legalize OSB and iGaming, the addressable market will swell. That puts into perspective the headroom for growth in the coming years.

It’s worth noting that for Q1 2024, the company reported a 53% upside in revenue to $1.2 billion. DraftKings has also increased its revenue guidance for the year to $4.9 billion, with adjusted EBITDA expected at $500 million.

I must add that for Q1, average monthly unique payers increased to 3.4 million. For the same period, the average revenue per user was $114, higher by 25% on a year-on-year basis. ARPU growth points to sustained EBITDA margin expansion potential.

Cronos Group (CRON)

Even Contrarian Investors Should Hold off on CRON Stock for Now

Even without federal-level legalization, the U.S. cannabis market is expected to be worth $71 billion by 2030. Germany has recently legalized cannabis, and other European countries might follow suit. The medicinal cannabis market is also gaining traction in Europe. Overall, with a relative decline in regulatory headwinds, the outlook is positive for the cannabis industry.

Cronos (NASDAQ:CRON) is one of the best picks among cannabis stocks. CRON stock has been trending higher, and I expect the positive momentum to sustain from deeply oversold levels. One reason to like Cronos is its strong fundamentals. The company ended Q1 2024 with a cash buffer of $855 million. That provides ample flexibility to pursue organic and acquisition-driven growth.

For Q1 2024, the company reported healthy revenue growth of 30% on a year-on-year basis to $25.3 million. I expect revenue growth to accelerate as Cronos makes inroads into new geographies. Initially, the company was focused on Canada and Israel. However, in 2023, Cronos entered Germany and Australia with its medicinal cannabis offerings. Recently, the company entered the United Kingdom with its first shipment of cannabis flowers.

Miniso Group Holding (MNSO)

red Miniso (MNSO) sign glowing at night
Source: shutterstock.com/Hendrick Wu

Miniso Group (NYSE:MNSO) is a deeply undervalued growth stock to buy for multibagger returns. The stock trades at a forward P/E of 18.7 and offers a dividend yield of 1.80%. Considering the expansion plans of this lifestyle retailer, I expect a big breakout rally. It’s worth mentioning at the onset that Miniso differentiates itself through a dynamic lifestyle product portfolio and attractive pricing.

For Q1 2024, Miniso reported healthy revenue growth of 26% on a year-on-year basis to $515.7 million. For the same period, the company reported adjusted EBITDA margin expansion of 200 basis points to 25.9%. The company’s growth was driven by aggressive retail store openings globally.

Miniso continues to have aggressive expansion plans. Between 2024 and 2028, the company expects to open 900 to 1,100 stores annually. During the same period, Miniso is targeting revenue growth at a CAGR of over 20%. With operating leverage, EBITDA margin expansion will likely sustain. As cash flows swell, the company will be positioned to increase dividends.

Lithium Americas (LAC)

smartphone with logo of Canadian company Lithium Americas Corp on screen
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If I had to buy only one lithium stock, it would be Lithium Americas (NYSE:LAC). At a market valuation of $924 million, the company’s shares are a steal, and I expect multibagger returns from current levels. Of course, the basic assumption is that lithium will trend higher in the long term. That’s very likely considering the impending demand-supply gap.

As an overview, Lithium Americas is the owner of the Thacker Pass lithium asset in the United States. Thacker Pass has a mine life of 40 years with an after-tax net present value of $5.7 billion. Further, once both phases commence production, the average annual EBITDA from the asset is likely at $2 billion. Clearly, it’s a potential cash flow machine.

It’s worth mentioning here that in March, the company received a conditional commitment for a $2.26 billion loan from the U.S. Department of Energy. Recently, the company raised $275 million through an underwritten public offering. This will likely ensure the construction of the Thacker Pass asset is not hampered due to financial constraints.

Coupang (CPNG)

The Coupang (CPNG stock) campus in Silicon Valley, California.
Source: Michael Vi / Shutterstock.com

Among quality e-commerce stocks to buy, Coupang (NYSE:CPNG) is worth considering. The Korean company has been delivering strong numbers and expanding its addressable market. It’s not surprising that UBS believes that Coupang will continue to increase sales, market share and margins.

For Q1 2024, Coupang reported revenue growth of 23% on a year-on-year basis to $7.1 billion. For the same period, gross profit margin increased by 260 basis points to 27.1%. I must add that for the last 12 months, Coupang has reported free cash flow of $1.5 billion. That provides high flexibility for aggressive investments.

While there is ample headroom for growth within Korea, Coupang is pursuing international expansion. The focus is on emerging Asia and Southeast Asia. Further, with the acquisition of Farfetch Holdings, the company has made inroads in the global luxury retail market. Therefore, as the addressable market gets bigger, revenue growth acceleration is likely coupled with continued upside in cash flows.

MakeMyTrip (MMYT)

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MakeMyTrip (NASDAQ:MMYT) stock has skyrocketed by 200% in the last 12 months. However, I would still consider buying on corrections with the company having immense growth potential.

As an overview, MakeMyTrip is the largest player in the online travel booking market in India. The company’s services include air ticketing and holiday booking, among others.

It’s expected that Indians could be the fourth-largest global travel spenders by 2030. That estimate looks realistic considering the point that India will add 140 million middle-income and 50 million high-income households by 2030. As a leading player, MakeMyTrip is positioned to benefit.

Specific to the company, the adjusted operating loss for the financial year 2021 was $18 million. With the tourism industry almost back to pre-pandemic levels, MakeMyTrip reported an operating profit of $124.2 million for FY24.

Stellar revenue growth will likely sustain, coupled with an upside in operating margin. I must add here that MakeMyTrip has a strong balance sheet with a cash buffer of $608 million. That provides flexibility for potential acquisitions to boost market share.

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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