5 Growth Stocks for the Next 5 Years

NVDA - SMCI - NFLX - AMD - FSLR

In this Blog Post, I am going to be going over some stocks with the greatest potential for growth. Some of them may surprise you, as they have already grown so much. Just because a stock is high, doesn't mean it can't go higher.

These companies have outstanding net profits and revenue/EPS growth. Does that mean they will end up taking off? Absolutely not. But it gives them a good chance.

Remember, fundamentals don't play out over the course of a week or a month. Fundamentals can take months or even years to play out. A fundamentally superior company, overall, should outperform the QQQ and SPY over the course of 5-10 years.

Every year, technology and competition changes. So, the best companies will most likely change every year. As investors and traders, all we can do is find the companies with the best chance of outperforming in the near future.

NVDA $3 Trillion

Nvidia may be worth almost three trillion dollars, today, but it's growth story may be just starting. In my opinion, I believe that Nvidia will end up being the first company to achieve a market cap of over $10 trillion dollars. And I think that valuation may come sooner than many people believe.

With outstanding growth and profitability, Nvidia is arguably the best company in the world. With a high P/E ratio, it could definitely pull back a bit, but I doubt it will drop significantly without a major change in its projections. As long as it can continue to keep up with expectations, its high P/E ratio is completely justified.

If this stock does drop big in the next 1-2 years, it's just a great opportunity to load up in my opinion. Nvidia has proved itself as a leader in the stock market and the world.

SMCI $45 Billion

When you look at the share price of SMCI, it seems high. However, the valuation metric of a company that you want to look at is the Market Capitalization, not the share price. The share price of a company actually has no significant meaning at all. It's all about the market cap.

When you look at the Mkt Cap of Super Micro Computer, you will see that it's significantly lower than Nvidia's and other Semiconductor companies. In other words, it has a lot of potential for growth. This is a stock that is worth keeping a close eye on.

If SMCI can keep up with what analysts are predicting, this stock has the potential to soar over the next several years.

NFLX $276.4 Billion

Netflix may seem expensive where it's at, but it's not when you look at its estimated growth. Management at NFLX has been doing an excellent job of creating value for shareholders. Analysts are expecting that performance to continue.

With a notable net profit margin and impressive growth, Netflix is positioned to outperform the market over the next few years.

AMD $271.3 Billion

AMD is definitely at risk of extreme price fluctuations due to its high P/E ratio. Companies with higher P/E ratios are always at risk of high volatility. These companies usually get most of their value based off of growth projections. When a company has a high P/E ratio, the expectations for growth are usually quite substantial.

Any measures of growth are extremely important for these companies. If growth dwindles in the stock, the sector, or the economy, these stocks can take a large dive. However, if they have solid management and their overall business continues to maintain strong, these drops can be buying opportunities.

AMD has seen significant growth over the last several years. The last two years have been a bit trying, but the future looks bright. I'm not sure how long it will take for AMD to become a powerhouse, but if it can continue to grow and expand, it could do extremely well.

FSLR $28.62 Billion

First Solar has recently had outstanding EPS and revenue growth. It's expected to continue over the next year as well. With a high net profit margin and stellar growth, this company could do well over the next 10 years.

However, over the last 5 years, 3 of them have been great and 2 of them weren't. In order for this stock to really soar, it will need to have multiple years in a row of outstanding financial performance. So, although this stock has done great recently, it will need to continue to outperform in order for the stock to really take off.

If First Solar can continue to impress investors in upcoming earnings, the stock can continue to appreciate rapidly.

Please note, if the general market takes a large dive, it tends to take ALL stocks with it. Growth stocks like these are some of the riskiest stocks you can invest into. However, they also have the greatest potential for returns. When you invest into companies that have high net profits and impressive growth, any drops can just be seen as buying opportunities.

Companies that aren't profitable or that have declining growth are the companies to watch out for. These are the types of companies that can drop 90-99% and never recover. Companies that are unprofitable are held up on hope and hype. When the hope and hype die down, they can lose all of their value.

Some other great companies with smaller growth projections include: AAPL, AMZN, GOOGL, META & MSFT. These companies all make a ton of money and are positioned to do well over the next several years. They have proven themselves year after year as leaders in their respective industries. In order to get a piece of all of them, the QQQ is a great way to invest into tech stocks!

A few other tech companies that I would classify as very risky that I am keeping a close eye on include ARM, COIN and TSLA.

Please Note: This blog post is not financial advice and is only my opinion. The stock market can do anything. Nobody knows what it is going to do. As investors and traders, the only thing we can do is take educated guesses as to what we believe will happen next. All of this data was taken from Schwab.com as of Sunday 6/9/2024.