After a brutal 2022, investors are looking at ways to maximize their returns in 2023 and beyond. While it’s not an easy endeavor, that puts us on the path of looking for stocks with 1,000% upside potential.
You know the type: These are the stocks that look obvious in hindsight, but aren’t so easy to pick out in the moment. They’re the ones that have gone on to have robust returns as their businesses have become staples in their respective industries.
The most obvious area to look at is in tech. That’s as the addressable markets tend to be the largest and as the growth tends to be the highest. Now, many of these names are down 70% to 80% (or more) from the highs, making the coveted 1,000% return more plausible even in a world of hurt.
So, without wasting any more time, let’s look at five stocks with 1,000% upside potential.
Stocks With 1,000% Upside Potential: SoFi (SOFI)
SoFi (NASDAQ:SOFI) has gotten caught up in the same mess that has hit most growth stocks. The bear market has wreaked havoc on these stocks and SOFI stock is no exception. Shares are down almost 68% over the past 12 months and more than 80% from the all-time high.
On the plus side, though, that decline makes the coveted 1,000% move that much easier for SOFI stock. In fact, at least one investor believes that SoFi could climb upwards of 29-fold over the next decade.
With these types of moves, a long-term outlook is generally needed.
While SoFi is not profitable at the moment, it’s building out an impressive flywheel of products. It continues to draw in customers who then go on to use multiple products. That’s helping to drive revenue, which is forecast to grow more than 50% this year to $1.53 billion.
If the company can maintain momentum, analysts also expect 33% revenue growth next year to more than $2 billion. It will be a long road forward, but SoFi has the tools to make it a multi-bag return if management executes.
The Trade Desk (TTD)
The Trade Desk (NASDAQ:TTD) is hardly underrated when it comes to growth stocks. In fact, I think the company can be considered one of the higher-quality names in the group. Shares are currently down about 50% for the past 12 months and may not be done going down any further.
As the economy likely enters a recession, it’s possible that digital ad spending will dry up. If and when that happens, The Trade Desk will feel pressure on the top and bottom line. That said, at least The Trade Desk is profitable and free cash flow positive.
Co-founder and CEO Jeff Green has built a powerful enterprise and, just like The Trade Desk was dominating before the bear market, I believe it will after. For what it’s worth, the company is also doing pretty darn well right now in the midst of such a difficult environment. Analysts expect 32% revenue growth this year and 20% growth next year.
For TTD stock to be a 1,000% gainer, it will need to go on to make significantly higher all-time highs.
Stocks With 1,000% Upside Potential: Snap (SNAP)
One reason to have faith in Snap (NYSE:SNAP) stock over the long haul? The fact that it rallied more than 950% from the Covid-19 low in 2020 to its all-time high in 2021. In other words, the 1,000% climb is a feat that SNAP stock has already pulled off once before.
That said, the stock has not been crushed without reason.
For the same reasons that The Trade Desk could struggle, Snap could too. Lower ad spend will negatively impact Snap and other social media companies. On the plus side, though, Snap is still generating positive revenue growth and non-GAAP earnings.
That said, Snap doesn’t have as strong of fundamentals as other social media platforms. That’s detrimental during bear markets. But once the bear market and recession are gone, Snap will have room to fly. The question is, how low will SNAP stock go in the meantime?
Marqeta (NASDAQ:MQ) stock probably isn’t very well-known by most investors. That’s despite the company being worth over $3.3 billion — 10 times more valuable than the next company on this list and just slightly less valuable than SoFi. Per the company’s website:
“In 2009, our founder and CEO Jason Gardner had a vision to simplify payments. Built from the ground up, our platform enables developers to launch new programs with speed, flexibility & scale. Obsessed with making the complex easy, Marqeta evolved into the world’s first open API modern card issuing platform.”
Unfortunately for Marqeta, it’s not yet profitable. However, the company continues to show steady growth. Analysts expect 44% revenue growth to $745 million this year and 27% growth next year to almost $950 million. That puts Marqeta on track to top $1 billion in revenue in 2024.
Further, its balance sheet is in very good standing. Total assets of $1.77 billion easily top total liabilities of $262 million. Marqeta also has no meaningful debt. While that may not make a difference in day-to-day stock price action, it will prove vital down the road as growth stocks continue to struggle.
Stocks With 1,000% Upside Potential: Jumia (JMIA)
Jumia (NYSE:JMIA) has been a huge disappointment. It continues to hit new 52-week lows and is currently down about 95% from the all-time high.
Some have referred to Jumia as the “Amazon of Africa,” which is partially true and partially not. The company does not operate in an economy that’s as strong as the United States, nor is the infrastructure in Africa as well built out. Jumia also doesn’t have an enormous cloud business generating billions of dollars in income like Amazon (NASDAQ:AMZN) does.
That said, if Jumia ends up being the online marketplace leader of Africa, then its share price may be immensely undervalued.
Jumia’s recent management shakeup was meant to drive focus on the bottom line, something the company will need to shore up if it wants to stay in business. In the most recent quarter, operating losses fell 33% year-over-year (YOY) while gross profit jumped 29% YOY. Revenue climbed more than 18% YOY as well.
These are the moves that investors need to see. I don’t know where shares will bottom, but if Jumia can curb its losses — and heck, even turn a profit — then JMIA stock could be a 1,000% gainer down the road.
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On the date of publication, Bret Kenwell 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.