Prediction: These 3 Growth Stocks Will Double Over the Next Three Years

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I’ve got some good news for readers: I’ve dusted off my crystal ball. This means I’ve got direct insight into which growth stocks will double over the next three years.

Of course, I’m kidding. There’s not telling which stocks will outperform over any given period of time, even if they’ve been on quite the run to today. And coupled with the fact that we haven’t had a protracted downturn in some time, there’s certainly the likelihood that “outperformance” over the course of the next three years can mean not losing as much value as the next company in the market.

That said, every investor should be on the lookout for the next double-up opportunity. I thought a three year window was a reasonable one to expect a double up in the following three names, given their current valuations and the sectors they operate in (as well as their potential opportunity over time).

Here are the three stocks I’ve got in mind right now. 

The Metals Company (TMC)

One of the small cap stocks I’ve been increasingly bullish on of late is The Metals Company (NASDAQ:TMC), a small Canada-based deep-sea mining company focused on developing an entirely new industry. By sweeping the sea floor for nodules of critical minerals used in the development of batteries and other technologies, the hope for investors is that TMC will pioneer a path forward for this mining process, which would alleviate the need for above-ground mining operations (which can be environmentally disastrous in their own right). 

The company’s potential to dominate what could be a multi-trillion-dollar market is certainly intriguing. And at a valuation of just $3.5 billion, there’s some massive upside potential baked into this current valuation I think is very compelling.

It’s also true that TMC has been ripping higher, as the company continues to move its permit process forward to actively mine some previously identified zones. As the company continues to ramp up its production, I’d expect the market to start to catch on, though this stock’s recent move (indicated in the chart above) highlights its potential better than I can with words. 

It will take a while for TMC to become profitable, but this is one of those long-term speculative bets I think is worth making right now. 

Meta Platforms (META)

An obvious pick for many long-term investors that have stuck with the social media and now-AI stock, Meta Platforms (NASDAQ:META) has really done nothing but trend higher over the long-term. 

Of course, there are periods of time such as 2022 (when most growth stocks took a dip) where Meta’s valuation and growth prospects have been called into question. But with the company investing heavily in its AI ambitions (and largely shifting from its metaverse-oriented growth vision), and Meta continuing to produce world-class cash flows thanks to its core social media and digital advertising business, one could argue that there’s plenty of long-term upside ahead.

Over the next three years, I’d expect Meta’s revenue and earnings growth to continue along at its current pace. If that’s the case, this stock should trade at a forward multiple of around 28-times 2025 earnings and toward the 20-times earnings level within three years. 

That’s reasonable in my view, for the quality of earnings investors can potentially receive. 

Nvidia (NVDA)

Last, but certainly not least in the minds of many growth investors, Nvidia (NASDAQ:NVDA) is the pre-eminent growth stock that few investors would argue has double-up potential over the next three years. 

Indeed, over the next year, investors could make the argument that such a return is possible. After all, this is a stock that’s done nothing but compound over time. 

Now, it’s also true that at a valuation of nearly $4 trillion, doubling from here is much more difficult than its previous moves. That’s a fair assessment, and something to take into consideration. 

But given the sheer size of investment that’s currently flowing into the AI revolution, and increasing expectations with respect to how long this investment trend can continue, Nvidia’s status as the undisputed leader in AI hardware and accelerated computing should drive a premium valuation that does appear to have room to stay steady or increase over time.

While Nvidia’s multiple has come down over time as the company has delivered on its top and bottom line growth ambitions (and then some), continued earnings beats should drive stock price appreciation over time. It’s my view this stock could be due for a double-up over the next three years, but this would be the holding I’d say investors have to watch most closely in the event we do indeed see a slowdown in AI spending materialize over this time frame. 

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