Building a seven-figure portfolio takes time, patience, and requires choosing the right stocks for investment. Identifying companies with massive long-term growth potential can set you on the path to amassing $1 million or more over a decade. Of course, an investor’s actual gains depend on portfolio size and investment horizon. However, by focusing on stocks poised for multi-bagger returns (at least according to Wall Street estimates), it’s possible to turn an initial investment of just $10,000 into $1 million in 10 years.
I’ve spotted three stocks perfectly positioned to deliver exponential growth for patient investors and eventually reach billion-dollar valuations. By investing early in these disruptive yet under-the-radar picks, a portfolio worth $1 million by 2033 seem achievable. My three stocks with the potential to convert a moderate investment into a hefty seven-figure portfolio over the next decade are as follows.
Broadwind (BWEN)
With energy security and sustainability top of mind amidst an ongoing energy crisis, companies enabling the clean energy transition excite me. That’s why Broadwind (NASDAQ:BWEN) stands out. This under-appreciated wind player provides essential components like wind turbine towers, gearing, and fabrication solutions for fast-growing clean energy sectors, including wind, mining, and natural gas power.
While Broadwind has faced some recent demand headwinds, the clean energy incentives in the Inflation Reduction Act provide powerful offsetting demand catalysts. These policies support a sustained expansion of wind energy investments in the U.S., driving demand for Broadwind’s products and services over the next decade.
Moreover, Broadwind continues to secure sizable multi-year contracts, including a notable $175 million wind tower deal announced in January. Plus, its 55% year-over-year backlog growth to $262 million demonstrates strong execution. Trading at just 0.4-times sales, BWEN stock appears severely overlooked and undervalued.
As Broadwind scales up production to meet surging clean energy demand over the coming years, this $75 million small-cap turning into a billion-dollar giant by 2033 doesn’t seem unrealistic to me. Broadwind’s leverage to secular ESG tailwinds makes it one of my favorite moonshot picks.
Accordingly, the average Wall Street analyst price target puts the upside potential here at 241%. If we take 2024 expected earnings at face value, the forward price-earnings ratio with this stock is just 4.4-times.
Freightos (CRGO)
Global supply chains remain a hot mess, creating enormous opportunities for logistics disruptors like Freightos (NASDAQ:CRGO). This tiny tech disruptor modernizes the archaic $2.7 trillion freight industry through its digital booking platform.
Freightos’ network effects are powerful. In Q1, its platform saw 229,211 transactions, up more than 100% year-over-year, as carriers and forwarders flooded in.
With freight rates still moderating from pandemic highs, shippers are likely eager to rein in costs through platforms like Freightos. The company’s bookings growth remained resilient amidst an industry downturn, affirming the strength of its ecosystem. Trading at just 8-times+ 2025 earnings, and 1.7-times 2025 sales, CRGO stock seems grossly undervalued relative to its future potential.
Suppose Freightos continues riding the digitization wave, increasing transactions by penetrating e-commerce and implementing real-time tracking. In that case, this $132 million minnow becomes a $10 billion whale within the next decade. That appears plausible to me. Global freight flows show no signs of abating, providing a vast runway for this disruptor.
Wall Street analysts share the same view, and the average one-year price target of $13 implies a whopping 364% upside for CRGO stock.
Cepton (CPTN)
If you’ve read my articles recently, you’d likely notice that I am very bullish on lidar technology. I have heavily covered companies like Luminar Technologies (NASDAQ:LAZR) since I believe that lidar only has one issue, which is price, and that is being quickly driven down over the past few years.
Another lesser-known leader in this space is Cepton (NASDAQ:CPTN). The company’s recent design wins, like its ADAS lidar series production award from a major U.S. auto OEM, validate its tech leadership in my view. Its lidar portfolio boasts proven performance, durability, and affordability. These are key attributes for investors considering the potential for lidar to be adopted by the masses.
Trading at a discount of over 94% from its SPAC merger, I believe CPTN stock offers compelling value given the company’s essential role in autonomous transportation’s future. By contributing its vision-sensing capabilities over the next decade, I think Cepton could plausibly reach a $10 billion+ valuation by 2033.
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On the date of publication, Omor Ibne Ehsan 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.
