3 Magnificent Stocks That Could Triple by 2030

Holding shares of growing companies is an effective way to invest and grow your savings over many years. And even with the markets sitting close to new highs right now, there are plenty of great stocks selling at discounted valuations that could deliver exceptional returns.

Three Motley Fool contributors provide reasons why Toast (NYSE: TOST), Roku (NASDAQ: ROKU), and Dutch Bros (NYSE: BROS) could potentially triple your investment in the next six years.

An undervalued high-growth software business

John Ballard (Toast): Toast is solving a big problem for the restaurant industry and generating tremendous revenue growth in the process. It provides a digital platform to help restaurants drive more orders and traffic and increase productivity for the staff. The stock trades at a relatively low valuation compared to most other growing software-as-a-service (SaaS) companies.

The industry operates on low margins, but as more customers order digitally, restaurants need an efficient tool to be able to serve more guests and grow their business, while efficiently managing operations to grow profits too. This is especially true for small businesses, which are driving most of Toast’s growth. The company’s revenue grew 42% in 2023 to reach $3.9 billion.

Toast serves an estimated 10% of all U.S. restaurants. That leaves a lot of room to expand. Management sees a tremendous opportunity to grow through word-of-mouth with local restaurants, expanding more with larger restaurant chains, and international expansion. Its platform is also easier to use than the competition, which gives Toast an upper hand in winning new customers.

The stock trades at a modest price-to-sales valuation for a high-growth software company. Most SaaS stocks trade around 10 times trailing revenue, but Toast trades at a 3.2 multiple of revenue. Assuming the company continues to grow revenue at a high rate over the next six years, the stock could triple in value just from the company’s revenue growth alone.

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