$10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

$10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

Here’s your chance to beat the market with safer growth stocks.

For most of us, $10,000 is a lot of money and putting that much into hand-picked stocks could seem risky. Therefore, if $10,000 is a meaningful investment for your diversified portfolio, be sure to invest it only in safer companies.

Three companies that I believe fill the bill are Axon Enterprise ( AXON 0.33%), Planet Fitness ( PLNT -0.46%), and Crocs ( CROX -1.26%). I think it’s reasonable to assume all three of these companies will still be in business and doing well 10 years from now.

Just as $10,000 is a relative number, so too is the term “fortune.” But I can tell you that even achieving the stock market’s average return over time can yield a meaningful return. And I believe returns from Axon, Planet Fitness, and Crocs can surpass the stock market average. Axon is locking in future revenue

Axon’s mission includes making public spaces safer, reducing social conflicts, and improving the justice system. Over the past 10 years, the company’s revenue is up over 800%. But given the breadth of its mission and the ongoing issues that exist in our world, Axon still has a long ways to grow over the next 10 years.

A lot can happen in a decade. But that’s why I like putting Axon in this discussion. The company partners with law enforcement agencies to provide Tasers, body cameras, and time-saving, record-keeping software. And the business is constructed with the long view in mind.

According to Axon’s management, roughly one-third of its top 100 contracts in the second quarter of 2022 were signed for a decade or longer. More than 100 new deals in Q2 were for at least five years. Given how mission-critical its services are and how long its deal are, I feel confident in Axon’s long-term prospects .

In Q2, nearly 29% of Axon’s revenue came from Axon Cloud, an impressive portion of the business. And herein lies the icing on Axon’s growth cake: Axon Cloud is making up a larger and larger percentage of revenue. And in Q2, the company locked in a six-year deal with Microsoft ‘s Azure for hosting. This means it has long-term cost control for this growing part of the business, which could boost profits in future years.

Finally, Axon’s future contracted revenue was up 63% year over year in Q2 whereas Q2 revenue was only up 31%. In other words, the company’s future looks better than recent results would have you believe — and recent results were quite good. At this rate, I see no reason why Axon couldn’t triple its revenue or more over the next decade, which would likely lead to outsized stock performance over this time. Competitors floundered. Planet Fitness strengthened.

In 2020, the COVID-19 pandemic impacted the entire world. Gym closures to reduce the spread of the coronavirus made the last couple of years exceptionally challenging for gym chains, and several went bankrupt as a result.

Statistically speaking, another global pandemic is unlikely to happen in the next 10 years. And having endured COVID-19 to this point, I can’t imagine any other issue derailing Planet Fitness in the coming decade. Indeed, in contrast to the competition, this growth stock is stronger than ever.

As of the second quarter of 2022, Planet Fitness has more locations (2,324) and members (16.5 million) than ever, leading to record quarterly revenue of $224 million. And the health of the business has management refocused on long-term growth and shareholder returns.

Regarding long-term growth, Planet Fitness’ management is targeting 4,000 locations in the U.S. — a more than 70% increase from its gym base today. It’s already opened 70 new locations in 2022 and its development pipeline is reaccelerating after a pandemic pause, so there’s plenty of opportunity domestically. But an international expansion opportunity also exists, as evidenced by its latest deal in May to open 25 locations in New Zealand .

Regarding shareholder returns, Planet Fitness’ management is starting to repurchase shares again, buying back $44.3 million in Q2 alone. This is significant considering stock-based compensation is only $5.6 million so far for all of 2022 — in other words, the share count is going down, increasing existing shareholders’ ownership stake in the business.

Over the next decade, Planet Fitness’ revenue growth, profit growth, and focus on shareholder returns can lead to big stock gains. In my opinion, this stock won’t be flashy but instead a quiet compounder — yet, a powerful one all the same. Crocs has big goals ahead

Crocs President […]

source $10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

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