3 actions that could turn $1000 into $5000 by 2030

Finding the highest growth prospects in the market at any given time is not very difficult to do. However, finding stocks capable of quintupling their value over the next five years is a different story. Its underlying companies need to get everything right and do business in an industry that is poised for serious, sustained growth. A temporary pullback from these actions also helps. That’s a tall order, for sure.

But there are a handful of such names available right now. Here’s a deeper dive into three of the best stocks with the potential to turn a $1,000 investment into a $5,000 position by the end of 2030.

Amazon (NASDAQ: AMZN) is, of course, the leader of the Western Hemisphere electronic commerce kingdom It controls 40% of the North American market, according to figures from Digital Commerce 360. It’s not doing too badly overseas, either. Its international arm saw top-line growth of 12% in the third quarter of last year, pushing it further into the black, where it looks set to eventually stay. (Its US e-commerce arm has been profitable for some time, but it’s also growing its operating income at a higher-than-average rate.)

None of these are reasons why you might want to consider getting into a stake in Amazon in anticipation of a heroic five-year run in the stock.

Rather, the crux of the bullish argument here is the company’s cloud computing business. You know it as Amazon Web Services or AWS. Thanks to last quarter’s revenue growth rate of 19%, which extends year-to-date comparable growth, AWS now accounts for more than 60% of the company’s operating income. This number is also growing quite rapidly.

Chart showing that all three of Amazon's arms are now profitable, led by its cloud computing arm. AWS. — Data source: Amazon Inc. Chart by author. The numbers are in the billions.

It’s important simply because the cloud computing market still has a lot of growth ahead of it. Mordor Intelligence expects the global cloud computing market to grow at an average annual rate of more than 16% through 2030.

The continued expansion of Amazon’s e-commerce operations certainly doesn’t hurt the bullish thesis either. Investors seem to be underestimating everything.

It’s been four difficult years Iovance Biotherapeutics (NASDAQ: IOVA) shareholders This stock was trending between 2019 and 2020 before finally reaching $54.21 in January 2021 and then falling back to a low of $3.21 in 2023. Its current price near 6 $.00 isn’t any better.

However, this strong selloff can be a fantastic buying opportunity rooted in the idea that sometimes investors collectively have a terrible time.

But first things first.

As the name suggests, Iovance Biotherapeutics is a biopharmaceutical name. Its flagship product is a tumor-infiltrating lymphocyte (TIL) treatment called lifileucel that has been in the works for years, but only got its first FDA approval (as a treatment for melanoma) in February 2024 .Although it was widely expected, it was still a major milestone for the pre-commercial revenue company.

The response has been good. Iovance sold nearly $60 million worth of the young (and expensive) drug in the three-month period ending in September 2024.

Investors, however, have not maintained an optimistic response to any of this success.

what gives

The action here is actually somewhat typical of small biopharma stocks working on a single game-changing drug candidate. This company burned through all of its bullish outlook fueled by euphoria in 2019 and 2020 when it first looked like lifileucel was likely to win approval. In the three years leading up to that approval, investors largely lost interest.

The irony is that Iovance Biotherapeutics’ growth story has never been more compelling than it is now. Credence Research suggests that the nascent and underserved tumor-infiltrating lymphocyte drug market is poised to grow at an annual rate of nearly 40% through 2032, when it should be worth around $2.5 billion of dollars Since Iovance is one of the first and few teams working successfully in this science, investors should begin to see and price its potential and real growth in the foreseeable future.

Last but not least, add year (NASDAQ: ROKU) on your list of stocks that could turn $1,000 into $5,000 by 2030.

Like Iovance, Roku’s stock soared during (and even because of) the early days of the COVID-19 pandemic. Suddenly, millions of people were stuck at home with nothing to do but watch TV. Roku streaming players helped make this possible.

As one would expect after the unchecked meteoric rise of this stock market, the market began to recognize that its then high valuation made little sense. The stock lost more than 80% of its value in 2021 and 2022, where it has been stuck ever since. The company’s lack of profitability during this stretch certainly hasn’t helped either.

Now take a closer look at…well, everything Roku is and does. Although it has recently relinquished some of that share, industry research name Pixalate says Roku still controls an impressive 37% of the connected television (CTV) device market in North America. The next closest competitor in this crowded arena is still far behind at just 17%.

The company is not doing so well overseas, but only because it is focusing more time and resources on the domestic market where it is doing so well and where it expects most of its opportunity. Global Markets Insights says the global streaming/on-demand video market will grow at an average of 11% annually through 2032, led by North America, where more than 40% of this business is done.

However, this is not the only bullish catalyst poised to drive this stock higher.

While Roku is back in the red after a brief swing to profit during a pandemic-laden 2021, its current revenue and earnings trajectories put it on a path back into the black next year . It’s not likely to be a huge profit: analysts are only looking for 2026 earnings per share of $0.36. However, this is not apt to be the end of this growth trend. Their top and bottom lines should continue to improve beyond that.

Chart that projects Roku's revenue and earnings per share to grow from 2024 to 2026. — Data source: StockAnalysis. Chart by author.

Stocks are likely to begin a recovery long before this feat of viability is achieved, in anticipation of what is increasingly clearly to come.

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John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Iovance Biotherapeutics and Roku. The Motley Fool has one disclosure policy.

3 actions that could turn $1000 into $5000 by 2030 was originally published by The Motley Fool

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