Top stocks that can bring life-changing wealth to their investors: Who does not want it. Another question is whether you really want to pay the price for it. After all, trust the candidates who have the appropriate risk-reward ratio. We can not avoid growth.
I believe it AxonEnterprise (WKN: A2DPZU) and Mercadolibre (NASDAQ: FTC) may be two more conservative top stocks that still have the potential for life-changing wealth. At least that’s where I see things to a solid tenfold upside potential. Let’s look at the details.
Axon Enterprise: Top stocks for life-changing wealth?
A first top stock for potentially life-changing wealth for me is still Axon Enterprise. The company is small but earns a big name. And is the ideal combination of matching unique hardware and a built-in software company with the cloud. High margins and a gigantic growth potential seem possible.
Axon Enterprise focuses on the security market with tasers and bodycams. Although I want to elaborate on the investment dissertation: It is about digitizing the police authorities and ensuring that all processes run as safely as possible. Starting with the interrogation up to the confrontation of an attacker. But also the evidence, the judiciary and all other processes are in the foreground. Finally, Axon Enterprise has solutions for digital evidence management, for sharing data in addition to tasers and bodycams.
The management of this largest life-changing wealth stock also sees a total addressable market of $ 52 billion. Crucial: You’re just starting to roll up the international market, but you can get the first deals around the world.
Axon Enterprise is currently valued at just $ 6.2 billion. In any case, for an addressable total market of $ 52 billion, I see room for improvement in terms of valuation. Of course, the management has only just set its sights on the billion mark in sales. But the need for such solutions does not diminish.
Mercadolibre: what an ecosystem!
Mercadolibre is the second top stock where I see life-changing wealth. At least if the investment specialty continues to function as before. Management is working to become a leading cosmos for e-commerce, payment, but also consumer credit and wealth management in Latin America with its 600 million consumers. Even cryptocurrencies are on the agenda and their own logistics are included. What value could it have?
In any case, the market value at the moment is less than 40 billion US dollars, which is very, very small for me. Two megatrends and the complementary areas should be significantly more valuable in this market in the long run. Especially since the price-sale ratio with a value of around 4 is relatively cheap. The core markets are Argentina, Brazil and Mexico. But the management is already noticing Chile.
Crucial to this biggest life-changing wealth stock: Mercadolibre’s management follows Amazon’s model of success. Customer satisfaction is more important than profitability. As well as expanding reach and market share at the same time. It may bother investors in the short term, but it’s the way to go to achieve excellent returns.
When in doubt, how big can e-commerce and digital payment services be across Latin America? I’m sure the $ 2.2 billion quarterly revenue is just a glimpse of the possibilities. Or the market capitalization of 40 billion US dollars.
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Vincent owns shares in Axon Enterprise and Mercadolibre. The Motley Fool owns shares in and recommends Axon Enterprise and MercadoLibre.