Wise investors know that it isn’t prudent to chase 100% returns within a period as short as 12 months. Playing the long game is the way to win when investing in the stock market. Yet, it does make sense to chase 100% gains in certain instances, such as with these stocks to double.
Generally, those situations include instances when good companies are temporarily weak or when a certain company is almost assured to be funded until successful. Those scenarios are present for two of the three stocks discussed below. The other is a strong, solid company at the forefront of a sector that will continue to grow.
Long story short, play the long game when investing in the stock market but also make room for chasing strong returns when constructing your portfolio. That said, let’s take a look at three stocks to double over the coming 12 months.
Fiverr (FVRR)
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At first blush, Fiverr (NYSE:FVRR) might not seem like a stock with the potential to double in price over the next 12 months. After all, revenues increased by a relatively modest 7.1% throughout 2023. That’s not exactly the kind of exciting growth that often underpins companies that can double their price in a short amount of time.
However, once you factor in other considerations it starts to become more evident why Fiverr could rise as high as $50, more than double its current price.
One of the biggest factors is simply that the company has become profitable this year. The company reported a net loss of $71.48 million in 2022. In 2023, that loss became a net income of $3.68 million
Combine recent profitability with a strong position as one of the leading names in the freelance work platform space and its potential becomes clearer. It’s a sector that is expected to continue to grow at rates well into the double digits into the early 2030s. All in all, that makes Fiverr International one of the least risky stocks by which to chase 100% returns.
Lithium Americas (LAC)
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Lithium Americas (NYSE:LAC) is a prime candidate among stocks to double over the next year. That isn’t to say that investors haven’t had their eye on the upstart lithium firm for quite some time. They have.
However, recent news from the company has made it all the more clear that Lithium Americas is positioned to be one of the most important firms moving forward. On March 12, the company announced that the Department of Energy will provide it with a loan worth $2.26 billion.
It’s a strong indication that the company is important to the United States. The U.S. is very clearly investing in electric vehicles and lithium Americas controls Thacker Pass, one of the largest lithium resources on Earth.
Lithium prices might not rebound until 2025. However, they will rebound and, when they do, LAC shares will jump upward quickly. It isn’t unreasonable to assume that share prices double once the lithium market shows signs of returning strength.
Pfizer (PFE)
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Pfizer (NYSE:PFE) stock continues to falter as the company searches for a new course following its pandemic success. That success led to annual revenues that exceeded $100 billion in 2022. In 2024, the company expects revenues to fall between $58 billion and $62 billion.
The company has undertaken a series of moves intended to make up for the shortfall caused by the end of the pandemic. That included a $43 billion purchase of Seagen for its oncology programs. It also includes the promise of several dozen product launches over the next year.
While that’s all well and good, I think the biggest opportunity lies in weight loss drugs. It’s no secret that Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY) have exploded due to FDA approval for their respective weight loss drugs. Pfizer, unfortunately, had to drop its twice daily oral obesity drug due to side effects. But, there could be a silver lining in that gray cloud. It’s important to note that Pfizer’s drug has the distinct advantage of being orally administered. If the company can tweak it and make it more palatable, that could certainly give the drug a leg up. Other FDA approved weight loss therapeutics are given as injections. If Pfizer can give some good news about that drug, don’t be surprised if its shares skyrocket.
On the date of publication, Alex Sirois did not have (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.
