5 Stocks That Could 10x

The economic and health trials and tribulations that kicked off this decade proved cryptocurrency isn’t the only unstable investment. In fact, the entirety of the stock market crashed, and the recovery over the following year wasn’t a straight line across the board. Some companies went bankrupt while other experienced 10x gains.

So, what are some stocks that could 10x in today’s economy?

The stock market looks a lot like the days before we knew what a coronavirus was. But there are key changes that occurred under the surface. Legacy banks crashed while Fintech rose, airlines stayed grounded while Tesla (TSLA) raced to the top.

Nothing that happened to the market is necessarily a surprise. The crash only highlighted and amplified industry trends we were already watching. Here are five companies that could very well be on their way to 10x investor returns.

1. DermTech Treats Biggest Cancer Culprit

DermTech Inc (NASDAQ:DMTK) is a biotechnology company with a revolutionary melanoma and skin cancer detection product. Its secret sauce is a non-invasive skin genomics platform, and it has already provided 3x gains to investors who bought in 2020.

DMTK share price hit a 52-week low of $8.69 during the coronavirus crash before jumping to a high of $40.66 before pulling back somewhat.

This triggered the company to announce the closing of a public share offering of over 4.8 million shares priced at $29.50 each. It will temporarily drive the price down, but could add to this $800 million company’s liquidity while possibly making it a billion-dollar company very soon.

Skin cancer is the most common global cancer, and it’s estimated to affect 20 percent of Americans by the age of 70. Worldwide stay-at-home orders temporarily kept people out of the sun’s harmful UV rays, but it’s only a matter of time before being couped up inside leads to an exodus of spring and summer vacations.

DermTech’s tests are not yet FDA approved, but it does have premarket approval and is undergoing clinical trials.

There’s also positive data coming from Canada, which approved it in 2018. And the company gained early in the year on news of Medicare expanding coverage for skin cancer patients.

If the world keeps moving this way, DermTech could 10x at least once in the 2020s.

2. Bloomberg Estimates 10x Square Revenues

Square Inc (NYSE:SQ) proved it’s a dominant force in the Fintech industry when small businesses had to go mobile in a hurry.

The Square payment platform is easy to adopt for small businesses working to offer contactless payments. And Weebly makes it easy to build an ecommerce presence.

Cash App experienced the biggest boom though – the app generated $2.07 billion in revenue and $385 in gross profit in the third quarter of 2020 alone.

Rumors also swirled at the start of 2021 that the company could buy Jay-Z’s Tidal music streaming service.

It started the year with a market capitalization over $100 billion and a very lofty P/E ratio over 485x. Share prices dropped to a 52-week low of $32.33 before climbing almost 10x to a high of $246.49. And the astonishing growth projected over the next ten years suggests this company hasn’t come close to reaching its potential yet; Bloomberg estimates 10x revenue growth from here.

That means it already provided an 8x return to investors who bought in at the right time. And it can do it again by the end of the decade – traditional bank Wells Fargo (WFC) struggled to recover from the pandemic. This could be a signal that a new guard is taking over the financial industry.

By 2030, we may very well call Square a “too big to fail” financial company.

3. Snap Year Over Year Growth Exceeds 50%

Snap Inc (NYSE:SNAP) is a dominate force in social media, counting roughly 46 million active monthly users in the United States alone. This helped the company generate $1.71 billion in revenue while growing to a staff of over 2,700.

Despite this big user base, it remained largely unprofitable until the 2020 pandemic. In the third quarter alone, it reported 52 percent year-over-year revenue growth. Although advertising rates declined, its user growth more than made up for it.

Its daily active users at the end of 2020 were around 250 million, and average revenue per user grew from $2.12 to $2.73. This led to a $56 million profit, something that spiked the company’s stock price heading into the holiday season.

Snap started 2021 at an $81 billion market capitalization after gaining 7x returns for investors in one year. Its share prices fell to a 52-week low of $7.89 before skyrocketing to highs around $55.00 by year end.

With Facebook (FB) facing antitrust action, Snap could find itself in a sweet position to provide another 10x return by the end of the 2020s.

And what older investors may be unaware of is just how popular the app is with teens. They’re not rushing to Facebook like their older siblings and parents once did. Instead they’re smitten by the ‘cooler’ Snap interfaces, Stories and Map features.

4. DMY Technology Group II (Genius Sports)

DMY Technology Group (NYSE:DMYD) is the blank check company created for Genius Sports to go public.

This sports data and technology company runs statistics and provides data management for major sports leagues from the NCAA to the PGA, NASCAR, and more.

The technology makes sending data and statistics throughout the league and to bookmakers easier.

And sports betting is a growing industry in the 2020s, thanks largely to a Supreme Court ruling that gives states the power to legalize it. Not only that, but fantasy sports is on the rise too – sports data could be a gold mine for investors willing to take the plunge.

With its market capitalization sitting above $500 million, bullish investors believe it is a stock that could 10x in value by 2030.

5. IPOE (SoFi) On Cusp Of Becoming Major Institution

Social Finance is a Fintech company set to IPO in 2021 through the IPOE special acquisition company (SPAC). Like Square (SQ), it’s run by a former c-suite executive from Twitter, and it’s quickly becoming a full-suite financial institution.

SoFi provides student loan refinancing, mortgages, credit cards, banking, and personal loans through both a mobile app and desktop interface.

With PayPal (PYPL), Square, and Bitcoin on the rise and Wells Fargo on the ropes, many analysts believe the 2020s will signal a shift of money away from the “too big to fail” financial institutions. SoFi’s peer-to-peer solution enables liquidity in a hard economy.

By the end of the 2020s, SoFi has the potential to gain 10x returns for its IPO investors.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.