While 2025 is less than 12 months away, the full year is roughly 2 years in the future. That means investors today have roughly 24 months during which to produce returns. Investors looking for 10x stocks during that period will have to accept real risk.
That said, trends indicate that a few sectors are best poised to produce such gains. Namely, flying cars, quantum computing and the electric vehicle (EV) industries — all ready for growth. Investing in search of 10x returns means avoiding more established firms in favor of those that are lower priced yet have appreciable potential. As always, risk leads to higher returns.
Archer Aviation (ACHR)
Archer Aviation (NASDAQ:ACHR) is one of the leading names in the flying car space. The company and its stock represent electric vertical takeoff and landing vehicles (eVTOLs) more commonly known as flying cars.
Is it realistic to assume that Archer Aviation could increase in value by a factor of 10 over the next 24 months? The answer is yes, based on target price forecasts, which suggest ACHR shares could rise as high as $75 in the next 12 months. Shares currently trade for just over $5 and are more likely to end up in the $20 range over that period. If shares reach either of those prices, investors will be very happy indeed. But 10x returns necessitate a price just above $50.
The company is expected to begin what is known as “for credit” testing of its midnight eVTOL in 2024.
Archer Aviation anticipates FAA certification and entry into service in 2025. If it is successful, the company will have transformed the taxi commute. For one, it will have taken a commuting into the air. Two, it will have chopped commute times down from roughly an hour to 10 minutes.
Quantum Computing (QUBT)
Quantum Computing (NASDAQ:QUBT) has emerged as a leading name in a sector known by the same name. Stocks in that sector continue to garner a lot of attention.
Are there better, more established firms in this sector than Quantum Computing? Probably. However, it’s much less likely those firms can provide the 10x returns we are discussing here. Therefore, QUBT shares make much more sense concerning this question due to its share price of $0.80.
Quantum Computing’s shares are expected to rise to a price level of nearly $9 over the next 12 months. Indeed, that translates to 10x returns. However, it must also be noted those same shares lost more than 50% of their value over the last 12 months.
That said, for the optimist with some money to invest, there are plenty of arguments in favor of QUBT.
Company-wide revenues more than doubled during the first nine months of 2023, growing 111% to $283,000. Further, Quantum Computing has developed a strong relationship with NASA and secured its third subcontract with the agency during the same period.
EVgo (EVGO)
EVgo (NASDAQ:EVGO) is likely the best investment of the three stocks on this list. While its ability to produce 10x returns over the next 12 to 24 months is speculative, its fundamental improvement is very much real.
EVgo provides the charging infrastructure sorely needed to help continue the growth of the EV industry. Importantly, EVgo is fundamentally headed in the right direction while so many other firms in the space falter.
ChargePoint Holdings (NYSE:CHPT) is the best-known firm in the EV infrastructure space. Its revenues are also falling, making it one of the more disappointing investments in EVs overall.
Meanwhile, EVgo’s revenues reached $35.1 million during the third quarter of 2023, representing 234% growth. Losses narrowed from $50 million to $28 million. Further, the company added 106,000 new accounts, bringing its total tally to 785,000. Whether the company has 10x return potential or not, it remains a strong investment overall due to its rapid fundamental improvements.
On the date of publication, Alex Sirois did not hold (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.