AMZN - 5 Stocks With 1000% Upside Potential

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Bear markets like the one we’re in now are financially painful and emotionally draining. But they aren’t all that common. Generally speaking, the market goes up on an annual basis eight out of every 10 years, or 80% of the time. Unfortunately, this isn’t one of those years.

On the plus side, the market is littered with opportunities for outsized returns when stocks turn higher. Yet, typically when the market bottoms, the average investor is exhausted and uninterested in buying. Those who do, though, have a shot at making triple- and even quadruple-digit percentage returns. So, in anticipation of an eventual rebound, let’s look at some stocks with 1,000% upside potential.

Stocks With 1,000% Upside Potential: Twilio (TWLO)

Twilio (NYSE:TWLO) stock has gone from darling to disappointment. Shares of the cloud communications platform provider rocketed from a March 2022 low of $68.06 to an all-time high of $457.30 in February 2021 — a gain of more than 572% in less than a year. Today, shares closed below their pandemic low. And it’s very likely there’s more downside in store.

That said, the underlying business is great. Demand for the company’s suite of products is strong as its customers continue to spend despite macroeconomic headwinds. Analysts expect revenue to increase 36% this year. Although that growth is projected to slow in subsequent years, analysts forecast revenue growth between 23% and 27% a year through 2025.

The problem with Twilio is not revenue growth, it’s earnings. The company has been ignoring the bottom line in favor of top-line expansion. In a raging bull market, that’s fine — encouraged even — but in a bear market, it’s a big no-no. To that end, Twilio recently unveiled a restructuring plan that includes laying off 11% of its workforce in an effort to cut costs and improve operating margins.

This is a big step in the right direction for Twilio. Given the platform’s moat, I believe this is one of the stocks with 1,000% upside potential from wherever its low ends up being.

Jumia Technologies (JMIA)

When times are good, investors often look to emerging markets to generate higher returns. Of course, emerging market stocks also come with higher risk, as we have seen with Jumia Technologies (NYSE:JMIA).

Shares of the African e-commerce platform rallied from a low of $2.15 in March 2020 to an all-time high just below $70 in February 2021, up an astounding 3,150%. Today, shares are back in penny-stock territory.

Now, I’m not necessarily saying JMIA can hit $70 again a year from now. It likely has further to fall from here. If shares trade back down to the low-single-digits, it’s not hard to envision a 10-fold rally.

Some investors have labeled Jumia “the Amazon (NASDAQ:AMZN) of Africa.” While that may be a bit of a stretch, at least thus far, the company continues to build out its e-commerce network throughout the second-most populous continent in the world with the goal of becoming the dominant online retailer.

Stocks With 1,000% Upside Potential: Snap (SNAP)

Snap (NYSE:SNAP), which operates multimedia instant messaging app and service Snapchat, was another pandemic favorite. It shot up from a March 2020 low of $7.89 to an all-time high of $83.34 in September 2021 for a 956% gain. Since then, SNAP stock has been hammered, falling 88% to around $10 per share. However, if shares retest their pandemic lows, this could be one of those stocks with 1,000% upside potential once again.

Snap went public in March 2017, and I’ll admit I didn’t like the stock much. The company had a unique social platform but a bad business. That’s not the case now, though. Over the past few years, revenue has been growing and losses have been shrinking.

As the bear rages on, we could see SNAP stock make a new low below $5 per share. Even if it doesn’t, I could see this stock being a 1,000% gainer from the lows once the dust settles.

Shopify (SHOP)

Amazon dominates the e-commerce experience, but is there room for other players? If so, Shopify (NYSE:SHOP) may be a worthy pick in the space.

Shares rallied from a March 2020 low of $30.53 to an all-time high of $176.29 in November 2021, up 477%. Since then, SHOP stock has cratered 85%.

In a boss move, Shopify’s CEO acknowledged that the company misjudged the post-Covid-19 environment. Management taking ownership of this is a positive sign.

Analysts expect annual revenue growth to continue to accelerate, rising from an estimated 19% this year to nearly 35% in 2025.

If today marked SHOP stock’s bottom, a rally back to the previous highs would yield a nearly 600% return. Yet, how low SHOP could go in a panic-driven bear-market capitulation is anyone’s guess. If shares were to fall another 35% to 40% to around the $16 level, a return to its highs would deliver a 10-bagger.

Stocks With 1,000% Upside Potential: Ondas (ONDS)

I thought about going with a strong business with this last pick and just hoping that, over enough years, it panned out. However, I took the opposite approach and am looking at a speculative holding with Ondas (NASDAQ:ONDS).

The company is a leading provider of private wireless data and drone solutions and “enables wide area intelligent networks for smart grids, smart pipes, smart fields and any other mission-critical network that needs internet protocol connectivity.”

With a market cap of just $144 million, Ondas is by far the smallest company on this list. Further, it’s the riskiest due to its lack of revenue.

The company has excellent prospects, but it needs to deliver. Last year, it generated less than $3 million in sales. For 2022, analysts expect revenue of roughly $7.5 million, up 159%. And for 2023, they are calling for 525.5% growth to $47.1 million. If that comes to fruition, we’re not talking about a $3 stock anymore.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The post 5 Stocks With 1,000% Upside Potential appeared first on InvestorPlace.