3 Stocks That Could Make You Richer Than Your Wildest Dreams

Stocks to buy

Stocks to make you rich — who doesn’t like the sound of that? Thanks to the Fed holding interest rates steady and healthy corporate profits, the S&P 500 builds on last year’s performance. It makes growth stock investing attractive, particularly with three interest rate cuts from the Fed this year.

To take advantage of what is happening in the broader markets, let’s explore a trio of stocks holding upside of 30% or more, covering a wide variety of sectors such as streaming, ride-hailing, and digital payments. Apart from the upside, these stocks can make you rich as they seek to tap huge addressable markets, meaning there is substantial growth on the horizon for them. Finally, two are based in the U.S. However, one of the stocks to make you rich gives you exposure to one of the fastest-growing regions of the world, Southeast Asia.

Remitly (RELY)

Source: Maryna Pleshkun/Shutterstock.com

Remitly Global (NASDAQ:RELY), with a market cap of $4.03 billion, is not the biggest company in the world, but it is among the stocks that can make you rich due to the huge digital remittance market.

Offering international money transfers to over 150 countries, Remitly holds the potential to take advantage of growing globalization, leading to a total addressable market of $1.5 trillion, which is growing.

Remitly is focusing on income flows to low- and medium-income countries, a market ripe for disruption. In 2023, foreign-born workers represented 19% of the U.S. labor force, and most of these 30 million immigrants employed want better, more efficient methods to send their money back home. As a tech-driven platform, Remitly is looking to streamline the process, ensuring lower costs and faster transaction times.

The strong growth potential is reflected in its earnings. Remitly’s revenue soared 44%, finishing at $944.3 million in FY’23, as send volume jumped to $39.5 billion, a 38% rise. The active customer base swelled to 5.9 million, a 41% increase YOY. Projecting forward, Remitly has set an ambitious revenue target of $1.2 billion for FY’24 while seeking to reduce losses.

Analyst data shows a “Moderate Buy” rating on RELY, with a target price of $27. The figure translates to an upside potential of approximately 30%.

Grab Holdings (GRAB)

Source: Twinsterphoto / Shutterstock.com

Choosing stocks that will make you wealthy is a wonderful way to invest in Grab Holdings (NASDAQ:GRAB). What’s not to like about a diverse portfolio and the fast-growing Southeast Asian markets?

Anthony Tan, Grab’s founder, hopes the company’s “superapp” will dominate e-commerce in Singapore and Southeast Asia, which grew between 4% and 5% in the last two years, exceeding China on certain occasions. Within the segments it targets, there is also excellent growth on offer. At a compounded annual growth rate (CAGR) of 5%, ride-hailing income in Southeast Asia is predicted to reach $10.50 billion by 2028. In the meanwhile, the digital payments market is expected to swell by 10% between 2024 and 2028, hitting $417 billion.

The super app with ride-hailing, food delivery, and digital payment features is what’s aimed for. Geographic diversification further complements the operating model, with bases in Singapore, Malaysia, Indonesia, the Philippines, Thailand, Vietnam, Myanmar and Cambodia. The lack of overexposure to any market protects the company and, in turn, investors from any volatility.

However, do not expect growth to end there. The company is targeting the e-commerce space too. Additionally, through the acquisition of Jaya Grocer, a Malaysian supermarket chain, it is already in a key service category.

All of the initiatives are translated into Grab’s financials as well. Grab reported a 30% YOY revenue jump for Q4’23, reaching $653 million and a profit of $11 million. Furthermore, adjusted EBITDA rose $146 million YOY to $35 million. Additionally, Grab’s board of directors greenlit a share repurchase program of up to $500 million for the stock​.

Finally, analysts have given Grab stock a “Strong Buy” consensus, cementing its place among the stocks to make you rich. The average price target is around $4, representing an approximate 39% upside from the last recorded price of $3.

Warner Bros Discovery (WBD)

Source: Ingus Kruklitis / Shutterstock.com

Warner Bros Discovery (NASDAQ:WBD) stock is down 25% this year, surprising considering the media assets it holds. WBD, resulting from the WarnerMedia and Discovery merger, covers platforms, including HBO Max and Discovery+. It added 2.6 million subscribers in Q4’23 to round off the year with 97.7 million, returning to streaming growth.

However, WBD stock has struggled since its debut. The streaming service is highly competitive. Netflix (NASDAQ:NFLX), in particular, looms large over the sector. Its latest deal to stream WWE programming events shows how far it can go to enhance its product. Investors also have concerns about WBD’s potential for achieving post-merger synergies. Furthermore, income losses from outside events, such as the strikes by Hollywood writers’ and actors’ unions, were expected to be between $300 million and $500 million last year.

The company’s considerable portfolio of media assets balances this bearish thesis, though. Max, its streaming service, merges HBO Max’s and Discovery+’s content. The platform includes iconic franchises such as “Harry Potter,” “The Lord of the Rings,” and the “Batman” films, drawing inbuilt audiences to the service, available in three tiers.

In addition, WBD stock sentiment has been perking up since CNN CEO Chris Licht’s departure. CNN, a key segment of the company, is always under close scrutiny. The market reaction reflects the hope that this departure could lead to a new strategic direction for the iconic brand.

Analysts have assigned WBD a “Moderate Buy” consensus, with an average price target stands of $14, an upside of about 56% from the last closing price of $9.

On the publication date, Faizan Farooque did not have (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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

Articles You May Like

3 Stocks With the Promising Potential of 1,000% Gains by 2026
3 Stocks Ready to Ride Apple’s AI Coattails Higher
Why Microsoft Stock Is Still a No-Brainer AI and Tech Stock to Buy
3 Tech Stock Winners to Buy Now for a Huge 2024
3 Stocks Hedge Funds Are Dumping Now: April 2024