Seven stocks that are potential ten-baggers

 

Shh!!! Be vewwwwy quiet. I’m hunting ten-baggers!

Yes, it’s pretty much the only thing I hunt, no, your being quiet isn’t going to make any real difference, and yes, I did just write a very gloomy story about overall stockmarket health, seen here on Friday. So why would be out hunting ten baggers today if I believe the stockmarket is overdue for a correction? Well, I am, for though I do believe the market will almost certainly lose half its value, I don’t care. The next 50% market drop might happen tomorrow, or it might happen six, eight, or 13 years from now. Also, when it does happen, the share prices of growing companies will bounce back quickly. The chance that you will pop out at the top and pop back in again at the bottom is miniscule, so don’t gamble on it. Buy stock in good companies and hold onto it forever—that’s how the winners win.

Remember to treat these ideas as just that, ideas, and do your own research before making any investment decision.

AK Steel (AKS)

The steel industry is cyclical, and at present, we appear to be at the extreme end of a pessimistic cycle. Most experts now agree that China will soon be offering concessions to ease the current Sino-US trade dispute, and among these, an end to the practice of steel dumping is among the most likely. With an even playing field, AK Steel is likely not only to survive, but to thrive. In time, say ten to twenty years, it will likely return to its pre-2008 highs, which would make it a comfortable ten-bagger from here.

Chart courtesy of www.stockcharts.com

The Trade Desk (TTD)

The Trade Desk is carving out a unique place for itself in the world of online advertising. It not only provides targeted advertising that no one else can match, but allows customers to get feedback instantly and make any needed changes on the fly. There may have been a time when the giants such as Google could simply have crushed The Trade Desk, but they failed to do so and now it’s too late. The question now isn’t whether The Trade Desk will continue to grow despite its larger competitors, but whether it will grow beyond and even replace them in time.

Chart courtesy of www.stockcharts.com

PayPal (PYPL)

PayPal has been around for decades now, but in some ways, the credit card-less credit card company is still the most radical thing going in payment processing. The entire industry continues to grow rapidly, and PayPal, being less than a third the size of giants like Visa, has plenty of room to grow. At present, there are is only one company on US markets that trades for more than $1 trillion, that being Apple, but in ten to twenty years, trillion-dollar companies will be numerous, and PayPal will very likely be among them.

Chart courtesy of www.stockcharts.com

3D Systems (DDD)

I’ve always believed in the promise of the 3D printing industry to smooth over rough points in the manufacturing chain, creating tremendous efficiency in the process. Despite having made many predictions that turned out well, including the identification of many stocks that went on to become ten-baggers, I got DDD wrong, and that has been one of my few lingering regrets in the stock-picking game. As revenues continue to rise for 3D printing companies, however, I become more and more convinced that the industry will eventually fulfill the promise I saw in it a few years ago, and even though Hewlett Packard is now in the game, 3D Systems has at least as good a chance of ending up in a winning position. I still own shares of DDD. It’s a fallen angel, but one I believe will someday rise again in glory.

Chart courtesy of www.stockcharts.com

Workday (WDAY)

There will always be a demand for better and smarter enterprise software, and that’s good for Workday. The company offers some of the easiest to use, most scalable business management software around, and with its market cap of just $33 billion, it has all the room in the world to grow.

Chart courtesy of www.stockcharts.com

Paycom (PAYC)

Sticking with enterprise software for the time, Paycom is another one of the best. The company specializes in employee management, including hiring, training, career development, and many other aspects of employee management beyond just payroll. It’s being adopted so rapidly among big companies that it looks like a contagion, and its market cap is only $9 million.

Chart courtesy of www.stockcharts.com

Five Below (FIVE)

Five Below is a dollar store for hipper, younger customers, who know that five dollars today is closer in value to the “buck” of old than a single dollar is. I beat the drum for Five Below and even owned shares for a couple of years, but grew impatient only slightly before things really took off for the company. As Billy Joel once said, you can see when you’re wrong, but you can’t always see when you’re right.

Chart courtesy of www.stockcharts.com

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