Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

3 10-Bagger Stocks to Buy Now and Hold for the Long Haul

Published 04/19/2023, 06:03 AM
Updated 07/09/2023, 06:31 AM
  • 10-bagger stocks are hard to spot.
  • Over the past years, there have been several 10 and 100-baggers that are still maintaining their gains.
  • Using InvestingPro tools, let's try and identify three 10-baggers that have the potential to rally even higher.

The great Peter Lynch coined the term "10-bagger" in his book "One Up On Wall Street," referring to stocks that multiplied their price by 10. A "100-bagger" refers to stocks that multiply their price by 100. Of course, it's every investor's dream, but it's not easy to achieve. In some cases, many stocks will never reach that level.

In other cases, it may take years and years of holding onto a stock with hope, like it was with Bank of New York Mellon (NYSE:BK), which was stagnant for five years moving between the $76-$81 range for that period, or American Express (NYSE:AXP), which was stagnant for seven years ($85-$92).

Some famous 100-bagger stocks and the time it took them to achieve this feat are:

  • Berkshire Hathaway (NYSE:BRKa) 19 years
  • Kansas City Southern (NYSE:KSU) 18.2 years
  • Altria (NYSE:MO) 24,2 years
  • Walmart (NYSE:WMT) 12.5 years

And these 100 baggers got there in a very short time:

  • Franklin Resources (NYSE:BEN) 4.2 years
  • Nexstar (NASDAQ:NXST) 5 years
  • Biogen (NASDAQ:BIIB) 5.5 years
  • Dell (NYSE:DELL) 7.2 years
  • Qualcomm (NASDAQ:QCOM) 7.3 years
  • Cisco (NASDAQ:CSCO) 7.3 years

According to Christopher Mayer's book "100 Baggers: Stocks that Return 100-to-1 and How to Find Them," around 50% of stocks that multiplied their price by 100 took at least 15 years, with a maximum of 30 years and an average of 26 years.

One example of a big winner is Monster Beverage (NASDAQ:MNST), which not only became a 100-bagger (in 9.5 years) but also multiplied its price by 720. However, this was not easy to achieve, as the stock went through a -20% drop in just three months and a -32% drop in another period of 65 days.

Let's take a look at some "10x10" stocks, which are ones that multiplied their share price by 10 in the last 10 years. Appreciating by 1,000% is a significant achievement, as the S&P 500 (NYSE:SPY) only had a return of +212% over the same period.

We will use the InvestingPro tools to identify three stocks that have become 10-baggers and still have some room to rise.

1. NVIDIA

Founded on 5 April 1993, NVIDIA (NASDAQ:NVDA) is a software company that develops graphics processing units (GPUs) and application programming interfaces (APIs). The company is a global leader in artificial intelligence hardware and software.

It reports quarterly results on 24 May and is expected to report earnings per share (EPS) of $0.91.

NVIDIA Stock Overview

Source: InvestingPro

Over the last 10 years, it has gained +1,000%. Its all-time returns are 8,833%.

NVIDIA Daily Chart

It is maintaining its upward trend and faces resistance at $286.95. Breaking this would give it a chance to continue its uptrend.

2. Tesla

Tesla (NASDAQ:TSLA), a US-based company headquartered in Austin, Texas, and led by Elon Musk, is involved in the design, production, and sale of electric vehicles, powertrain components for electric vehicles, solar roofs, and home batteries.

It was established in July 2003 with the name Tesla Motors, paying homage to the renowned inventor and electrical engineer Nikola Tesla. Elon Musk, who initially invested $6.5 million in the company, continues to serve as the chairman.

Tesla Financial Overview

Source: InvestingPro

The stock is close to the resistance level at $214.24, and the 200-day moving average is nearby. Breaking through this level on the first attempt might be challenging, but it will be a bullish sign if it happens.

Tesla Daily Chart

3. Advanced Micro Devices

AMD Financial Health

Source: InvestingPro

Advanced Micro Devices (NASDAQ:AMD) reports quarterly results on 2 May, and EPS is expected to be $0.56.

AMD Daily Chart

Over the past 10 years, the stock has returned +1,000%. Its all-time returns are +3,700%. It remains within its bullish channel and above its 200-day moving average. $108.59 is its next target this year.

Aside from the three stocks, there are others as well:

  • Plug Power (NASDAQ:PLUG)
  • Enphase Energy (NASDAQ:ENPH)
  • DexCom (NASDAQ:DXCM)
  • Axon Enterprise (NASDAQ:AXON)
  • Texas Pacific Land (NYSE:TPL)
  • Monolithic Power Systems (NASDAQ:MPWR)
  • Broadcom (NASDAQ:AVGO)
  • Repligen Corporation (NASDAQ:RGEN)
  • Fortinet (NASDAQ:FTNT)
  • MSCI (NYSE:MSCI)
  • Lam Research (NASDAQ:LRCX)
  • Netflix (NASDAQ:NFLX)
  • Apple (NASDAQ:AAPL)
  • Microsoft (NASDAQ:MSFT)

InvestingPro

This analysis was done using InvestingPro tools.

Disclosure: The author does not own any of the securities mentioned.

Latest comments

Have you heard
Hello
Lazy man’s article
Sooo ... where do you imagine Nvidia taking the profits for 8 trillion valuation, so it can be the 10 - bagger? I mean it has 1/2 intels revenue, yet it is 7x more expensive already,  The global semiconductor industry is expected to triple by 2029 to whopping USD 1.4 trillion, but how could Nvidia pull of 8 trilion valuation is a mystery to me.
Hy
lol Apple a 10x bagger from here? what a garbagge article.
My 8year old could have written a basic report like this. Who doest TSLA & NVDA has sky rocketed. Every tom, dick & harry are watching the stocks daily. As your title portrays, how about you research some undiscovered 10 baggers that the market doesnt know about and that havent already sky rocketed….
what a piece of useless rubbish...
Tesla. problems with battery swaps are mounting
Ismael , today after earning you will see wrong you are!!! NVDA and TSLA are huge bubble
nima gap
Amazon didn’t make the cut ?
Hmm qualcomm settlement helped them. Next 100 bagger is netlist after court today woth samsung thwrw guilty
Nvidia and Tesla long? You first ...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.