2 Top Stocks That Could Turn $10,000 Into $50,000 by 2030

TSX investors can buy shares of quality growth stocks, such as Snowflake, allowing them to generate exponential gains in 2023 and beyond.

| More on:
top TSX stocks to buy

Source: Getty Images

Growth stocks across multiple sectors plunged to multi-year lows in 2022. The S&P 500 index closed the last year in negative territory for the first time in four years. In fact, major indices reported their worst performance in 2022 since the financial crash of 2008.

However, investors should also understand it is pretty rare for the S&P 500 to report two consecutive years of declines. So, there is a good chance for growth stocks to gain momentum in the second half of 2023 once the macro environment improves.

Here, we look at two quality stocks that can generate exponential returns before the next bull market resumes.

A cloud-based tech stock

One of the hottest growing tech stocks on the planet, Snowflake (NYSE:SNOW) is also part of Warren Buffett’s Berkshire Hathaway portfolio. The company offers a cloud-based data platform to its base of enterprise customers.

Due to the ongoing volatility in the equity markets, SNOW stock is currently trading 55% below all-time highs, valuing the company at a market cap of US$57.2 billion.

At the end of the fiscal third quarter (Q3) of 2023 (ending in October), Snowflake reported RPOs, or remaining performance obligations, of US$3 billion — an increase of 66% year over year. This metric provides investors with near-term revenue visibility of the company.

In Q4, Snowflake forecast its sales to increase by close to 50% year over year, which is quite exceptional. We can see Snowflake’s robust portfolio of products and services allow it to rake in sales, despite lower enterprise spending in recent months.

Additionally, Snowflake bills its customers on the basis of usage, allowing the latter to monitor associated costs each month. With strong retention rates, Snowflake should benefit from increased customer spending over time, as enterprises are bound to subscribe to a wide range of applications.

Snowflake expects to end fiscal 2029 with US$10 billion in sales and report an adjusted free cash flow margin of 25%. In case Snowflake’s sales touch US$12 billion in fiscal 2030, its free cash flow will stand at US$3 billion. So, for SNOW stock to gain 400%, its market cap will touch US$286 billion, valuing the company at 23.8 times free cash flow, which is quite reasonable.

A cannabis giant

There is a good chance for cannabis stocks south of the border to gain pace if marijuana is legalized at the federal level. Right now, the consumption of pot is still illegal in a few states, making it difficult for cannabis producers to access traditional sources of capital at a low cost.

In the recent selloff, Green Thumb Industries (CNSX:GTII) has seen its market cap decline by close to 80% from all-time highs, valuing the company at $2.6 billion.

Green Thumb is among the largest cannabis companies in the world. A profitable multi-state operator, Green Thumb has reported a positive net income for 10 consecutive quarters. In the last three quarters, its net income is up 20% year over year at US$63.2 million, while sales grew by 17% to US$758 million.

GTII is forecast to end 2025 with sales of US$2 billion, while its adjusted earnings might expand by 18% annually in this period. So, at three times forward sales, GTII stock might surge 200% in the next three years.

But analysts remain bullish on the company and expect GTII shares to triple in the next 12 months.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Berkshire Hathaway, Green Thumb Industries, and Snowflake. The Motley Fool has a disclosure policy.

More on Tech Stocks

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

2 Cheap-Looking Stocks to Could Win in the AI Revolution

It's about time we gave firms like Thomson Reuters (TSX:TRI) a bit more of an AI premium.

Read more »

bulb idea thinking
Tech Stocks

The Smartest Canadian Stock to Buy With $1,000 Right Now

Strong financials, booming demand for its services, and an expanding presence in AI and cloud computing hardware make Celestica the…

Read more »

doctor uses telehealth
Tech Stocks

3 Tech Stocks I’m Looking to Buy in February

These tech stocks will deliver solid gains driven by the deployment of AI and investments in omnichannel commerce and digital…

Read more »

Burning semiconductor CPU
Tech Stocks

Is AMD in Trouble After Wednesday’s Stock Drop?

Shares took a painful hit after the chip designer's fourth-quarter report.

Read more »

An investor uses a tablet
Tech Stocks

If I Could Only Buy and Hold a Single Stock, This Would Be it

Despite more than doubling in value over the last six months, I still find BlackBerry stock undervalued based on its…

Read more »

chip with the letters "AI" on it
Tech Stocks

Celestica Stock Trading at All-Time High: What’s Next?

Celestica stock is beating Nvidia, surging 1,358% since October 2022. Today, it is trading at its all-time high. Is there…

Read more »

dividend growth for passive income
Tech Stocks

2 Growth Stocks That Could Turn $10,000 Into $24,800 by 2030

These resilient growth stocks could grow your money.

Read more »

Credit card, online shopping, retail
Tech Stocks

Where Will Shopify Shares Be in 5 Years?

In addition to Shopify’s consistently growing sales and expanding profit margins, its focus on long-term growth initiatives could help its…

Read more »