If you’re looking to make a lot of money in stocks, you really need to look at small companies set to grow large.
The best performing stocks come from this group almost every single year.
These are the leaders of tomorrow that you want to buy today — before they’re household names and before the biggest gains are realized.
I focus a lot of my research on these stocks for one very simple reason …
It’s where my biggest winners have come from.
As I wrote yesterday, it’s far easier to multiply your money in small, hypergrowth, and innovative stocks. A seedling can grow 50X its size, but a mature oak tree can’t.
Through the years, I’m fortunate to have had 23 1,000% winners … and many more triple-digit gainers. Each time one of these stocks soars, I learn more about why they have the right stuff to generate big returns.
Let me share five keys to look for in your hunt for stocks that can return 10X your money, and then I’ll give you an example of a stock that checks all the boxes …
When looking for a stock with the potential to massively increase your wealth, I suggest you dig into whether it has these five traits:
It’s an elephant and not a mouse. You want to own a company going after big opportunities in growing markets.
It’s got a unique product that’s unlike anything else on the market. It doesn’t literally have to be the only one of its kind, but if it’s not it at least must bring major improvement or cost savings to something that already exists.
It has a “moat.” That’s Warren Buffet’s term for what we used to call barriers to entry. You want to own stocks where it’s very hard for a competitor to take away customers or market share.
It’s scalable. A scalable business can massively grow revenues while minimally growing costs. That’s when the profits (and the shares!) soar.
And … it has 10X potential written all over it.
Now, let me give you an example of a high-potential small stock that has all these characteristics going for it. I gave this stock away in the Bull Market Confidential event, and I think has a great chance to be another 1,000% winner.
In a nutshell, this company uses artificial intelligence (AI) to find blockbuster drugs faster and more efficiently. I think this is one of the most exciting trends in healthcare, and this company definitely has the makings of an “elephant.”
Pharma companies spend about $165 billion each year in search of the next blockbuster drug, and yet … seven out of every eight potential candidates fail somewhere along the way. And for those that do get approved, it takes an average of 10 years. It’s extremely expensive and extremely time consuming.
This company is one of the leaders in using AI techniques like machine learning to discover drugs quicker and cheaper. Its goal is to cut the development time and cost in half. If it can get anywhere even close to those goals, this company could be a blockbuster.
It’s also highly scalable. Once a biotech comes up with a drug that works and passes all the FDA hurdles, it can crank out millions or even billions of doses at very little extra expense.
This company’s most promising candidate at the moment is an anti-agitation drug. Now, that may not sound like much, but this is a big problem for those dealing with dementia, schizophrenia, and especially opioid withdrawal.
Treating the 150 million people around the world who suffer with severe agitation as a result of those conditions is an opportunity in the billions of dollars.
The “moat” here is this company’s ingenious solution to the agitation problem — a strip coated with the drug that’s placed under the tongue. It’s kind of like those dissolving breath strips you can buy at any drug or grocery store.
It’s a potentially game-changing solution to a difficult problem — so much so that it was granted Fast Track Designation by the FDA. Its testing and approval process will be expedited because it targets a serious condition with basically no good alternatives right now.
And things get even more fascinating looking further into the future. One interesting possibility is pairing these self-administered strips with wearable devices, like the Apple Watch.
Imagine that your device notices your heart rate and blood pressure starting to rise. Both are common signals before an episode of extreme agitation. The device gives an alert that triggers an automatic dose of the anti-agitation drug. No need for intervention by a medical professional at all.
That’s just one glimpse into the amazing possibilities in healthcare.
And if AI-assisted drug development is the game changer I think it will be, everyone out there will want to be a part of the massive opportunity with companies like this one.
For more details on this company and how to identify the most promising stocks in the market, be sure to watch the Bull Market Confidential replay while it’s still available.
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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