Home Listing method 2 unstoppable actions that could turn $ 50,000 into $ 250,000 by...

2 unstoppable actions that could turn $ 50,000 into $ 250,000 by 2030

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The stock market liquidation in September and October seems to have subsided, with the S&P 500 the index has now returned to its all-time highs. The drop was only 5% at its worst, so some investors might think it wasn’t much of a buying opportunity.

But it’s important to stay focused on the long term and remember that time in the market is more important than timing in the market. Investors who buy stocks today are unlikely to dwell on their entry prices through 2030.

Here are two innovative tech stocks that could be multiplied by five by then, and they can be bought right now.

Image source: Getty Images.

1. The case of DocuSign

DocuSign (NASDAQ: DOCU) is best known as the leader in digital signature technology. It was very successful before the pandemic, but when work from home trends kicked in, the company’s growth rate exploded. This new dynamic appears to persist and DocuSign’s expanding product portfolio is expected to generate long-term rewards.

The company invests in emerging technologies such as artificial intelligence to deliver the next generation of digital document innovation. The DocuSign Insight platform can read and analyze legal contracts to identify problematic clauses or potential opportunities, saving businesses time and money.

This is especially useful for organizations that issue and receive a high volume of contracts, as the cost of retaining a team of lawyers can be astronomical. Although Insight is not yet ready to replace these professionals, artificial intelligence promises a future that makes it almost inevitable.

Metric

2019 financial year

Fiscal year 2022 (Estimate)

TCCA

Returned

$ 701.0 million

$ 2.1 billion

43.8%

Data source: DocuSign. CAGR = compound annual growth rate.

Assuming DocuSign’s price-to-sales ratio stays the same, it would need to increase its revenue by about 20% per year for its inventory to increase fivefold by 2030. Currently, its turnover increases by double this rhythm. But perhaps more importantly, the company is expected to reverse its loss history by generating $ 1.75 in earnings per share during the current fiscal year, which ends on January 31, 2022.

None of the Wall Street analysts who cover DocuSign are recommending selling the stock. With a strong vote of confidence from professionals, a future built on innovative technology and the numbers to back it up, DocuSign looks like an excellent bet to turn $ 50,000 into $ 250,000 by 2030.

A smiling couple surrounded by boxes, sitting on a sofa cushion on the floor.

Image source: Getty Images.

2. The case of Redfin

Unlike DocuSign, Red tuna (NASDAQ: RDFN) don’t try to reinvent the wheel. He’s in the real estate sales business, and he’s taking existing processes and just trying to make them better (and cheaper) – and he’s having huge success.

Most real estate agents are either self-employed or work in a small business dedicated to a specific city or geographic area. They charge a listing fee of around 2.5% which is costly for the seller, but selling a house is a huge financial decision that most people are not willing to attempt without professional help. .

Redfin disrupts the traditional model by employing thousands of agents who operate in all major jurisdictions in the United States. . The proposal is a victory for Redfin and home sellers, resulting in skyrocketing revenue growth.

Metric

2018

2021 (Estimate)

TCCA

Returned

$ 486.9 million

$ 1.8 billion

54%

Redfin’s share of US home sales

0.81%

1.18% (Current)

N / A

Data sources: Redfin, Yahoo! Finance.

Redfin’s market share in total homes sold continues to climb, further underscoring the company’s popularity with consumers. But the company is not a one-dimensional sales agency; he also has a small presence in the tech-driven iBuying industry, where he buys homes directly from sellers and flips them for a profit.

The company sold 463 homes using this method in the first half of 2021, an increase of 39% compared to the first half of 2020. Although strong, almost all gross profit still comes from selling houses in the traditional way.

Like DocuSign, Redfin is crushing the 20% revenue growth rate it needs to potentially quintuple by 2030. It operates in a $ 36 trillion industry and as it continues to capture market share, it’s a exciting opportunity for investors.

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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool owns shares and recommends DocuSign and Redfin. The Motley Fool recommends the following options: November 2021 short sale at $ 65 on Redfin. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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