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Home›Unsecured Personal Loans›3 Explosive Growth Stocks for the Next 10 Years and Beyond

3 Explosive Growth Stocks for the Next 10 Years and Beyond

By Mary M. Cox
October 10, 2021
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You can have 20 different stocks in your portfolio, but to get rich, only a few of those stocks need to be multidug in the years to come. In other words, think of growth stocks that could potentially be unstoppable if they can make the most of the opportunities that present themselves. In about a decade, these stocks could grow your wealth exponentially.

Here are three such growth stocks with explosive potential for the next decade and beyond, all of which carry an undeniable megatrend.

The power of dividends in clean energy

It would be hard to find a renewable stock on a list of growth stocks, however Renewable Brookfield (NYSE: BEP)(NYSE: BEPC) has pretty much all of the qualities a stock with exponential growth potential should have: size, a huge addressable market, and an underlying secular trend that is changing the world. Let me explain.

Brookfield Renewable is one of the world’s largest and most diversified pure renewable stocks with operations on four continents in the hydropower, wind and solar sectors. Given its size and size, the company already has a massive position in the industry and will be difficult to displace. With the International Energy Agency predicting renewables will account for a third of the world’s electricity by 2025, Brookfield Renewable is potentially sitting in a trillion-dollar market.

Image source: Getty Images.

Brookfield Renewable already has 31 gigawatts (GW) of assets under development, compared to 20 GW of assets currently in operation. This should be reflected in the company’s sales in the years to come.

Brookfield Renewable has already given an outlook on its mid-term expectations: It expects Funds from Operations (FFO) per share to grow organically by 6% to 11% through 2025, companies will find meaningful acquisition opportunities in between. That also means that even without inorganic growth, Brookfield Renewable could conveniently reward shareholders with annual dividend increases of 5% to 9%, which could ultimately add a lot to shareholder returns over the next decade, as it has done in the past.

Not any other ecommerce stock

Shopify‘S (NYSE: SHOP) Platform gives pretty much anyone the ability to start and run an online business, with end-to-end management from inventory to payments to sales channels. Shopify wants to make building and managing an online shop easier. As simple as it sounds, it’s a really powerful concept that aims to empower people, entrepreneurs, and especially small businesses. This is where the company’s growth potential lies, especially in a world that is increasingly digitized in the wake of the COVID-19 pandemic.

Shopify’s revenue topped $ 1 billion for the first time in a quarter, and its gross merchandise volume hit a staggering $ 42.2 billion. Importantly, the company also posted net income of $ 879.1 million in the second quarter. Shopify’s popularity in the US is already growing rapidly and it is only a matter of time before the company establishes itself as a major e-commerce player in international markets. Shopify Markets, a hub that enables merchants to sell worldwide, is just one of the many steps Shopify is taking to grow internationally.

Best of all, Shopify is already profitable and has a solid balance sheet with low debt and high liquidity, which is unknown in growth companies especially in an industry like e-commerce. It’s also a founder-run company, and that improves the chances of Shopify being successful in the long run. Ultimately, Shopify’s success will be every shareholder’s success.

Revolutionizing a critical industry

Upstart stocks (NASDAQ: UPST) The stock currently has a frothy rating of 60 times sales, but that’s how growth stocks behave. Upstart is growing its sales at breakneck speed: sales rose 1,018% in the second quarter, helping the company generate a profit over a loss in the same period last year. Upstart is apparently attracting more banks and customers as the loans granted on its platform rose 1,600% in the second quarter.

This could just be the beginning as Upstart expands into newer, larger markets.

Instead of the traditional FICO Upstart uses Artificial Intelligence (AI) to screen borrowers based on more than 1,500 data points, helping partner banks provide low-risk loans and provide borrowers with fast, affordable loans. Notably, 71% of all loans were automated and approved immediately in the second quarter.

Most of these were unsecured personal loans, which Upstart has focused on so far. But now the company is aggressively expanding into auto refinancing, which should be its biggest growth catalyst. It’s a $ 635 billion market based on total US auto lending between Q2 2020 and Q1 2021. On October 6, Upstart launched auto lending with its Upstart Auto Retail tool, the franchise – Helps dealers of top car brands sell new and used cars. In the second quarter alone, auto retail vehicles sold more than $ 1 billion.

With Upstart also looking to markets like credit cards, mortgages, student loans in the long term and the company is already profitable, this growth stock could not be stopped for the next decade and beyond.

This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.

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