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Top Stocks Poised for Significant GrowthTop Performers Forecasted to Double Your Money in 5 Years

In the investment realm, a two-bagger signifies a stock that doubles an investor’s initial capital, representing a notable achievement. Achieving such a feat in merely five years proves to be no easy task, necessitating a compound annual growth rate (CAGR) of approximately 14.9%. By historical standards, such returns are not a guarantee, yet in the recent half-decade, the broader S&P 500 has nearly matched this level. These exceptional returns, therefore, are by no means assured.

However, if one were to speculate on two stocks that could potentially double one’s investment within the next five years, Shopify and Axsome Therapeutics would secure positions on that list. Continue reading to explore the rationale behind this forecast.

Shopify: Dominating E-Commerce

Shopify has accomplished the feat of doubling investors’ capital over the past five years, yet this is certainly not a harbinger of future performance. Despite this, several aspects stand out. Initially, the company’s shares experienced a significant surge at the onset of the pandemic when the e-commerce sector received a substantial boost due to the global outbreak. Subsequently, Shopify relinquished much of these gains between late 2021 and 2022 but has since rebounded.

Moreover, Shopify made pivotal strategic adjustments to its operations in 2023. Among the most impactful changes was the divestment of its logistics segment, redirecting its focus to its core e-commerce activities. This move is projected to bolster profit margins and ensure sustained profitability for the enterprise. Historically, the persistent losses on the bottom line and Shopify’s apparent inclination towards unbridled growth had been key criticisms from the skeptics, underscoring the significance of this strategic pivot.

Looking ahead, Shopify is poised to continue reaping the rewards of the rapidly expanding e-commerce industry, where it has established itself as a frontrunner. The company equips merchants with all the essential tools to establish and customize online storefronts, in addition to vending their wares on various social media platforms. Simultaneously, it furnishes an integrated payment platform, seamlessly bridging brick-and-mortar and e-commerce transactions.

Shopify enjoys a competitive advantage conferred by switching costs; once merchants invest substantial resources in building an online storefront with Shopify, the prospect of migrating to a rival provider becomes unappealing. Furthermore, the company is actively investing in diverse initiatives, including the integration of artificial intelligence (AI) capabilities into its platform to enhance operational efficiency for merchants.

Over the initial nine months of 2023, Shopify’s net loss per share contracted to $0.41, in contrast to $2.24 during the corresponding period in the prior fiscal year. Furthermore, the company’s revenue surged by approximately 27% year over year, climbing to $4.9 billion. With the top line demonstrating robust growth, combined with bottom-line enhancements and boosted margins, Shopify is primed to potentially double investors’ wealth in the next five years.

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Axsome Therapeutics: Pioneering Breakthroughs

Amidst the past five years, Axsome Therapeutics has made consistent clinical advancements across multiple fronts, evolving from a clinical-stage biotech firm to one with two commercially available products. Nevertheless, ample growth prospects remain within Axsome’s ambit.

The pharmaceutical company anticipates several pivotal milestones in the current year that could propel its stock price to new heights and, more crucially, establish a robust foundation for the future. These include two regulatory submissions to the U.S. Food and Drug Administration, three phase 3 clinical trial data disclosures, and the initiation of three fresh phase 3 studies in 2024.

Firstly, Axsome Therapeutics aims to seek approval for AXS-14 in treating fibromyalgia, a chronic ailment characterized by widespread pain and sleep disturbances.

Secondly, the biotech foresees the release of data from a late-stage study for one of its approved products, Auvelity, in the treatment of agitation associated with Alzheimer’s disease (AD). This represents the second phase 3 trial for this medication in this indication, following a successful debut.

Thirdly, Axsome will embark on a phase 3 investigation for Sunosi targeting major depressive disorder. While Axsome Therapeutics is yet to achieve profitability, given its recent transition into the commercial arena, the company has outperformed the market over the past five years due to significant advances in pivotal programs. Axsome is anticipated to remain on this trajectory, potentially elevating its portfolio to an entirely transformed state within the next three years, thereby reclaiming multi-bagger status over the coming five years.

Should you invest $1,000 in Shopify right now?

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Please note that the details provided here do not constitute investment advice. Prospective investors should conduct comprehensive research and consult with a financial advisor to assess opportunities in the stock market.