Daily Traders Edge

Here Are 3 Stocks That Could Double Your Money

May 03
10:03 2021

Lots of stocks could double your money, but if they’re only growing at, say, 3% per year, it might take about 23 years. Most of us would much rather double our money faster.

Here, then. are three intriguing growth stocks that appear to have rosy futures ahead of them.

1. Impinj

Impinj (NASDAQ:PI) is a stock I’ve had on my watch list for several months, and while I’ve been waiting for its shares to retract a bit to offer me a better entry price, they have instead risen some 38%. The company specializes in the Internet of Things and makes radio-frequency identification (RFID) products. RFID technology allows for inexpensive tags that can be attached to a wide variety of items, enabling them to be tracked and to transmit information.

A common use these days is when retailers attach RFID tags to their wares, helping them keep track of inventory and better manage their supply chains. Airlines are customers, too, as RFID tags on luggage can help track it and reduce baggage losses. Many view Impinj as just getting started, seeing wider uses for its technology.

Impinj’s revenue dropped some 9% from 2019 to 2020, in large part due to the pandemic, which depressed a lot of retail business — and travel as well. But we appear to be starting to put the pandemic behind us, and if that proves to be true, business is likely to keep growing briskly for Impinj, at least in the near term.

You can make a convincing case that the stock is overpriced, with its recent price-to-sales ratio topping 9 and the company still posting losses. But with a market capitalization recently only at $1.3 billion, the company appears to have a lot of room to grow, and long-term investors stand a good chance of seeing their stake double in value.

2. Infinera

With a market capitalization recently below $2 billion, Infinera (NASDAQ:INFN) is another smallish company with great potential. It specializes in optical technology, some of which can, for example, help carriers boost their bandwidth without having to lay any additional fiber. The year 2020 was challenging for most companies, and Infinera was no exception, but it still managed to post a year-over-year revenue gain of 3% while boosting its operating profit margin, reducing its inventory levels, and increasing its cash flow.

Continue Reading at The Motley Fool

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