With the stock market constantly evolving, investors are always on the lookout for companies poised for significant growth.
While past performance is no guarantee of future returns, certain stocks in fast-growing industries have potential to deliver outsized gains over the long run.
Here are 3 top industry stocks that could realistically double in value by the end of this decade:
1. Tesla (TSLA) – Electric Vehicles
Tesla is a leader in electric vehicle manufacturing and has first-mover advantage in an industry set for massive growth. Electric vehicle adoption is still in the very early stages, accounting for just 3% of auto sales in 2021. But that figure could reach over 50% by 2030 as prices come down, charging networks expand, and more models become available.
Tesla sold over 936,000 cars in 2021, up almost 90% from the prior year. The company is rapidly expanding production capacity, aiming to grow deliveries by 50% per year over a multi-year period.
Tesla’s broad lineup includes the Models S, 3, X, Y along with solar products and energy storage. New factories in Austin and Berlin will supplement output from the Shanghai and Fremont plants.
As the clear electric vehicle market share leader, Tesla is well-positioned to capitalize on surging industry growth. Wedbush analyst Dan Ives believes Tesla’s stock could double from current levels reaching a $1.4 trillion market cap by the end of the decade. Riding the electric vehicle boom, Tesla has potential to continue delivering outstanding returns.
2. Sea Limited (SE) – Southeast Asian Internet
Sea Limited operates the leading e-commerce and digital payments platforms in fast-growing Southeast Asian markets. The region has over 650 million consumers, but online penetration still lags behind China and the West. E-commerce accounts for just 5% of Southeast Asian retail sales versus 25% in China.
Sea’s e-commerce arm Shopee is the top online shopping site in Southeast Asia and Taiwan. Its Garena digital entertainment division develops hit mobile games like Free Fire. Meanwhile, SeaMoney is a leading digital wallet and payments service in the region.
Sea Limited has seen explosive growth, with 2021 revenue up 127% year-over-year to $10.2 billion. But this still represents only a fraction of the company’s long-term potential. E-commerce and digital payments markets in Southeast Asia are projected to reach $309 billion and $1.1 trillion respectively by 2030.
Sea Limited has established a strong competitive position in a region that will drive global Internet growth over the next decade. The company is executing well and could realistically grow revenue 10x by the end of the decade. This tremendous growth potential makes Sea Limited a stock that could double for investors.
3. Vertex Pharmaceuticals (VRTX) – Biotechnology
Vertex Pharmaceuticals is a leading biotechnology company focused on developing transformative therapies for cystic fibrosis (CF) and other genetic diseases. The company already has four approved CF medicines that generated $7.6 billion in 2021 revenue. But Vertex believes its cystic fibrosis franchise can reach $13 billion to $14 billion in peak sales this decade.
The majority of Vertex’s pipeline focuses on developing new CF medicines for patients who can’t take or don’t respond well to current treatments. Two of these drugs VX-121 and VX-145 delivered positive phase 3 results in 2021. Vertex also aims to expand into other disease areas like sickle cell disease, beta thalassemia, and kidney diseases.
Biotechnology stocks carry higher risk due to clinical trial uncertainty. But Vertex has proven R&D capabilities, strong financials, and growth opportunities in the targeted disease categories. The company is projected to grow revenue at a 16% annual rate through 2026. If Vertex can extend its success, the stock could deliver significant long-term returns for investors.
Tesla, Sea Limited, and Vertex Pharmaceuticals operate in industries with massive growth runways through the next decade. Leveraging first-mover advantages and innovative technology, these stocks appear capable of sustaining impressive growth. While risks exist, the potential upside is tremendous if execution continues. For investors with a high risk tolerance, these stocks offer the possibility of doubling over the next 7-8 years.