The easiest way to build wealth is to start sooner rather than later. If you wait until you accumulate a large amount of money, you could end up waiting forever. Even if you start with just $50, there are several stocks that can double this amount in two years. While there are no guarantees in the stock market, high-growth potential stocks pay off in the long-term. I’ve identified three under $50 stocks with growth potential to generate significant returns.
These companies have been the talk of the town lately and have a lot of momentum on their side for various reasons. If you fancy doubling your money by 2026, here are three under $50 stocks with growth potential. Let’s dive into them.
Palantir (PLTR)
I’ve been pounding the table on Palantir (NYSE:PLTR) for the past few months. The technology company has been around for two decades and has shown the strongest growth over the past year.
Driven by artificial intelligence (AI), Palantir has seen tremendous growth in its client base. It was once criticized for only focusing on government clients but it now has an envious client base. The demand for AI has boosted the stock and it is exchanging hands for $25, up 55% year-to-date.
Despite using AI for many years, Palantir has seen a surge in demand this year. Everyone is integrating AI into their business and no organization wants to be left behind. The company is in the right place at the right time.
It already has a strong relationship with the U.S. government and this shows that it has the potential to handle complex data. It launched the Artificial Intelligence Platform (AIP) last year and the sales have only increased. Up 21% YOY, the sales hit $634.3 million in the first quarter.
The commercial clients rose 42% year-over-year and its remaining deal value saw a 74% jump. PLTR stock has been moving higher since the first quarter results. I believe it will have an excellent 2024 and the stock could double your money by the end of next year.
Cathie Wood purchased Palantir stock worth $5.05 million through the ARK Genomic Revolution ETF (BATS:ARKG).
Robinhood (HOOD)
Growth stock Robinhood (NASDAQ:HOOD) is making big moves in the industry. The company has innovated the brokerage industry and has made it easier for beginners to start their investing journey.
Young people who always thought investing was a tough job are now investing in the future. Its subscription plan, Robinhood Gold is a huge hit which helps set the company apart from its competitors.
The Gold plan offers a wide range of products at a nominal cost and the company saw a 42% YOY jump in subscribers to reach 1.7 million. In the first quarter, it saw a 40% YOY jump in the revenue to hit $618 million and the net income stood at $157 million. Robinhood has gone from a loss in the first quarter of 2023 to a positive net income in the recent quarter.
Recently, the company has agreed to acquire Pluto Capital, an artificial intelligence platform and this deal will help enhance Robinhood’s offerings to clients. It has seen a steady growth in trading volume. An improvement in the economy could also lead to higher volumes in the coming months.
The stock has already doubled in the past 12 months and is up 81% YTD. Exchanging hands for $22, it still has room to run. I believe it is one of the best stocks under $50 with growth potential.
Delta Air Lines (DAL)
Now is the ideal time to invest in Delta Air Lines (NYSE:DAL), the largest airline in the world with a solid upside potential. It saw massive traffic on the Memorial Day weekend and the Fourth of July could be the busiest weekend for the business with an estimated 71 million people traveling.
The company has an extensive route that ensures its customers do not have to look elsewhere. Its management is aiming for an EPS of $6 to $7 and is optimistic about the coming quarters.
Fundamentally, Delta Air Lines has bounced from a loss in the first quarter of 2023 to a profit in the first quarter of this year. If this momentum continues, it could see immense upside. The company reported an EPS of $0.06 and the operating income came in at $614 million. Trading at $46 today, the stock is up 15% YTD, and the third-quarter results could give it a solid boost.
TipRanks has a “strong buy” rating for the stock with an average price target of $61, a 31% upside from the current level. TD Cowen has a price target of $61 for the stock with a “buy” rating while Jefferies has a “buy” rating with a price target of $58. The company is set to report second-quarter results on July 11.
On the date of publication, Vandita Jadeja 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
