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Globe and Mail
4 days ago
- Business
- Globe and Mail
2 Growth Stocks to Invest $1,000 In Right Now
Growth stocks can often generate life-changing returns for investors. Imagine buying a stock that becomes a multibagger in a few years, and it's not by fluke. These are steadily growing companies, often enjoying significant competitive advantages and riding long-term growth trends, all of which eventually reflect in their share prices and generate massive returns for shareholders. Here are two such incredible growth stocks you could buy right now with as little as $1,000. This phenomenal growth stock could grow even bigger Visa (NYSE: V) is the leading payments processing company in the world. By connecting card issuers, consumers, merchants, financial institutions, and the government across the globe, Visa facilitates digital transactions and earns fees on them. Those transactions now run into trillions of dollars. In the 12 months through March 31, 2025, for instance, Visa processed over 315 billion transactions, worth a whopping $16 trillion. Moreover, Visa generates hefty margins and boatloads of cash from all of that business. Here's a 10-year chart showing the steady growth in Visa's key operational metrics over the past decade. During the period, Visa's net income and cash flows more than tripled, while the stock price quintupled. Put another way, if you'd invested $1,000 in Visa stock 10 years ago, your money would be worth $5,000 today. V data by YCharts That's how growth stocks work -- they keep multiplying your money, backed by the underlying company's strong fundamentals and growth catalysts. Visa's leadership position, asset-light business with minimal credit risk, and the rising global trend of digitization have all worked in its favor. E-commerce and digital banking are huge facilitators. As more people bank and shop online, demand for digital payment tools like credit cards, debit cards, and wallets should continue to rise. Meanwhile, Visa remains an innovator, launching new payment features, enhancing security and risk management, and leveraging artificial intelligence (AI) as it launches new products and services. As long as Visa continues to innovate to remain ahead of competition and generate hefty margins, its stock could remain an unstoppable force for years to come. A once-in-a-lifetime opportunity Amazon (NASDAQ: AMZN) has been a phenomenal wealth compounder over the years and decades. From an online bookstore to becoming the world's largest e-commerce company, Amazon has come a long way over its 30 years of existence. But that's not where the stock's appeal now lies. Amazon's cloud computing arm, Amazon Web Services (AWS), is the largest cloud computing platform in the world. AWS dominated 29% of the market in the first quarter of 2025, considerably ahead of the second-largest cloud provider, Microsoft, with a 22% share. You might also be surprised to know that AWS, not e-commerce, is Amazon's most profitable business. In 2024, although AWS contributed just about 14% to Amazon's net sales, it brought in a whopping 54% of the company's operating income. Not surprisingly, Amazon wants to make the most of its largest profit driver and is therefore going all out on AWS. It is aggressively rolling out new AWS features and products, and expects to spend nearly $100 billion this year primarily on its AI and AWS infrastructure. That should ensure Amazon remains at the forefront of a rapidly growing industry -- the cloud computing market is expected to grow at a compound annual growth rate of 20.4% between 2025 and 2030, according to Grand View Research. Meanwhile, Amazon is expanding its fulfillment and transportation network for e-commerce and investing in technologies like automation and robotics to cut costs and improve delivery times and consumer experiences. Amazon already dominates two huge markets globally (e-commerce and cloud computing). With CEO Andy Jassy now laser-focused on AI, even recently calling it a "once-in-a-lifetime" business opportunity, buying Amazon stock now could generate big returns for investors in the coming years. Should you invest $1,000 in Visa right now? Before you buy stock in Visa, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Visa wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor 's total average return is818% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Visa. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
15-06-2025
- Business
- Yahoo
1 Growth Stock That Could 5x Your Money in 10 Years
Retail investors should focus on the long term. Long-term investing is easier to get right and allows investors to be early to promising opportunities. This artificial intelligence (AI) stock has multibagger potential, and the valuation is somewhat reasonable in the high-flying sector. 10 stocks we like better than Nebius Group › In most regards, retail investors are at a big disadvantage to professional investors working at hedge funds. They typically aren't as well-trained; they likely don't have as much time to conduct research or nearly the same amount of resources at their disposal. One major advantage, however, is that time is on their side. While hedge funds typically invest over a 12-to-18-month time horizon, retail investors can buy stocks they want to hold for five, 10, or even 20 years. This allows retail investors to buy stocks early and patiently wait for the catalysts to play out and for businesses to develop. Here's one stock to buy that can 5x your money in 10 years. When companies have serious ties to artificial intelligence (AI), their stocks are usually gobbled up before most retail investors take notice, resulting in stretched valuations that are often unappealing. But unlike most AI names, investors have had the chance all year to buy Nebius Group (NASDAQ: NBIS) at very attractive or at least reasonable valuations. While investors have started to catch on and the stock is now up 70% this year, Nebius, at a $11.4 billion market cap, still presents a compelling long-term opportunity. Nebius builds data centers specifically aimed at helping customers launch AI solutions. The company's data centers purchase graphics processing units (GPUs) from major chip players like Nvidia, and then allow companies to essentially rent their infrastructure to build and run AI languages and applications on. For companies that would prefer to not have to set up their own AI infrastructure or need additional capacity, the arrangement is quite appealing. While this is Nebius' main business, the company also has some other smaller, developing businesses, like its generative AI development business, Toloka, and an autonomous driving technology business. The stock traded extremely cheaply when it rejoined the Nasdaq toward the end of last year, because it hadn't traded on the Nasdaq for close to three years. Nebius used to be owned by Russian internet giant Yandex. When Russia invaded Ukraine, U.S. sanctions on Russia led to the delisting of many Russian stocks. Since that time, however, Nebius split off from Yandex in a $5.4 billion deal that would see the company move its headquarters to Amsterdam. In December, Nebius announced that it had raised an oversubscribed private round of financing led by Nvidia and other major venture capital companies, which seemed to give the company more credibility and the market more confidence in the name. Nebius also has a partnership with Nvidia. This month, Nebius unveiled a flurry of positive news events. The company raised $1 billion in additional capital through convertible notes to accelerate growth and recently announced expansion in the United Kingdom, as well as the general availability of Nvidia's next-generation Blackwell chips in Europe. In the first quarter of the year, Nebius reported over $55 million of revenue, up 385% year over year, although the company's net loss grew 41% to close to $114 million. The company invested significantly in the quarter, and operating costs nearly doubled on a year-over-year basis, as capital expenditures (capex) and increased spending on data center hardware led to a more than fourfold increase in depreciation and amortization. However, Nebius is growing fast and has expanded its data center network, adding four new locations in Europe, the U.S., and the Middle East over the last three quarters, not including its planned GPU cluster in the United Kingdom. Furthermore, management said they remain on track to exit the year with $750 million to $1 billion of annual run-rate revenue. Management also said they expect to become positive on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis in the second half of this year. In the medium term, management projects to reach mid-single-digit billions of dollars in revenue, with adjusted EBIT margins in the 20%-30% range, assuming a four-year depreciation schedule. Obviously, the company still needs to execute, and the AI trade and AI capex could see some ebbs and flows and may not work in a straight line. But overall, Nebius is growing fast and meaningfully growing revenue, and its use case is resonating strongly in one of the most promising sectors of the market. Before you buy stock in Nebius Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nebius Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Bram Berkowitz has positions in Nebius Group. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Nebius Group. The Motley Fool has a disclosure policy. 1 Growth Stock That Could 5x Your Money in 10 Years was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
25-05-2025
- Business
- Yahoo
Jubilee Metals Group (LON:JLP) Could Be Struggling To Allocate Capital
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. In light of that, when we looked at Jubilee Metals Group (LON:JLP) and its ROCE trend, we weren't exactly thrilled. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Jubilee Metals Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.047 = US$12m ÷ (US$427m - US$162m) (Based on the trailing twelve months to December 2024). Therefore, Jubilee Metals Group has an ROCE of 4.7%. In absolute terms, that's a low return and it also under-performs the Metals and Mining industry average of 7.0%. See our latest analysis for Jubilee Metals Group Above you can see how the current ROCE for Jubilee Metals Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Jubilee Metals Group for free. In terms of Jubilee Metals Group's historical ROCE movements, the trend isn't fantastic. Around five years ago the returns on capital were 8.8%, but since then they've fallen to 4.7%. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run. On a side note, Jubilee Metals Group's current liabilities have increased over the last five years to 38% of total assets, effectively distorting the ROCE to some degree. If current liabilities hadn't increased as much as they did, the ROCE could actually be even lower. While the ratio isn't currently too high, it's worth keeping an eye on this because if it gets particularly high, the business could then face some new elements of risk. Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Jubilee Metals Group. These trends are starting to be recognized by investors since the stock has delivered a 32% gain to shareholders who've held over the last five years. So this stock may still be an appealing investment opportunity, if other fundamentals prove to be sound. If you want to continue researching Jubilee Metals Group, you might be interested to know about the 1 warning sign that our analysis has discovered. While Jubilee Metals Group isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
