These stocks have generated life-altering returns.
The great thing about investing is you don’t need to start with a big fortune to eventually build a portfolio worth a life-changing amount of money. It is challenging, of course, to find in advance the big growth stocks that can generate those kinds of transformational returns. But the one key ingredient that is usually necessary is patience: Significant gains don’t often come quickly. The longer you hold, the better your odds will be that you’ll earn a great return.
Two of the best growth stocks you could have owned during the past 10 years are Nvidia (NVDA 3.37%) and Celsius Holdings (CELH -2.33%). Here’s a look at just how much you could have earned from these two investments during that stretch, why they did so well, and why they can continue to be excellent stocks to own in the years ahead.
Nvidia
It’s not much of a surprise for Nvidia to be on this kind of list given how significant a role the tech company has played in artificial intelligence (AI), and with so many companies relying on its chips to power their next-generation technologies and software. Yet even before the surge in its financial results and stock price set off by the AI boom, Nvidia was an outstanding investment.
The sheer growth that Nvidia has generated in recent years is evident just by looking at its financial statements. During its past four reported quarters, it generated more than $53 billion in net income. That’s nearly double the $26.9 billion in total revenue it generated in its fiscal 2022, which ended Jan. 30, 2022 — before all the AI hype began. During that fiscal year, its profit totaled $9.8 billion.
Nvidia’s impressive growth has sent the company’s market cap to about $2.9 trillion. But because its earnings have increased rapidly, it’s trading at a forward price-to-earnings (P/E) multiple of 31, which doesn’t seem all that high for a stock that has risen by 26,000% during the past 10 years. A $10,000 investment in the company a decade ago would be worth $2.6 million today.
Given its still fairly modest valuation and the growth potential in AI, it may not necessarily be too late to invest in Nvidia. Although the stock isn’t likely to generate the same type of returns during the next decade as it did in the last one, it can still be an excellent buy.
Celsius Holdings
Energy drink maker Celsius Holdings has also been a growth machine for investors over the past decade. Although the stock has been struggling this year as the company’s sales growth rate slipped, this business has achieved significant growth over the years.
During the past four quarters, the company has generated close to $1.5 billion in sales — that’s nearly five times the $314.3 million in revenue it reported back in 2021. The company was struggling with profitability at the time, and incurred losses as recently as 2022, but it’s firmly in the black these days, with net earnings coming in at $241.3 million during its past four reported quarters.
If you invested $10,000 in this stock a decade ago and held on, your stake would be worth more than $1.7 million today. Combine that with another $10,000 investment in Nvidia made at the same time, and the value of these two holdings would approach $4.5 million. And if not for the recent sell-off in Celsius stock, your returns would have been even greater than that.
There’s still a bullish case to be made for Celsius these days. Trading at a forward P/E of 26, it’s not egregiously overvalued. And with it now being a more prominent name in the energy drink market, there’s still room for it to go higher in the future, especially as it enters more international markets.
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius and Nvidia. The Motley Fool has a disclosure policy.
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