Finding potential trillion dollar stocks is paramount as the US confronts an economic future with spending and debt crisis in Congress. Due to a $1.7 trillion gap in 2023 and federal debt expected to exceed 100% of GDP by 2053, urgent bipartisan cooperation is crucial.
To secure economic future in the face of headwinds, immediate reforms in Social Security, evidence-based healthcare spending reductions, and the tax code are essential in the government.
As investors navigate these economic challenges, it becomes pertinent to consider strategic investments. Here are three trillion dollar stocks poised to ride the wave.
Bumble Incorporated (BMBL)
Bumble Incorporated (NASDAQ:BMBL) is a women-focused dating app that has taken the world by storm since 2015.
Financials remain strong. Revenue is forecast to be $1.019 billion, a 16.54% YoY increase that is outpacing the broader market. EBITDA margins are expected to break records at 26.17%, and the company is expected to turn a profit after two years of losses.
By 2030, the dating application market is expected to be worth $14.42 billion from a 7.2% CAGR.
BMBL further trades at a low valuation. The stock trades at a 2.83x price to sales, which is at its all-time low since its IPO date. Prime competitor Match Group has a price-to-sales ratio of 3.39x, which translates to a 20% premium.
BMBL is expected to grow revenue by 5.37% YoY, showing that Bumble’s growth is not being valued by the market. Wall Street is also bullish, with JP Morgan and Goldman Sachs reaffirming buy ratings and having an average price target of $17.70 from 20 analysts.
Overall, Bumble is a fast-growing company that couple be among the trillion dollar stocks before you know it.
MercadoLibre (MELI)
MercadoLibre (NASDAQ:MELI) is a well-established fintech and e-commerce company dubbed the “eBay” of Latin America. It hosts an online marketplace, offers payment processing, and provides logistic services to sellers.
Strong financials are evident. It reported $3.76 billion in revenue and $7.16 in EPS, beating Wall St estimates. This is further underscored by revenue being projected to grow 34.4% and EPS is expected to grow 163.8%.
In contrast, global e-commerce giants like Amazon and Alibaba have struggled to enter the Latin American market. Furthermore, Mercado Pago, Mercado Libre’s e-commerce arm is a huge revenue driver because a significant percentage of the Latin American population is still underbanked.
Wall St analysts are bullish as well, with a price target of $1,678.85 indicating an expected upside of 21.5%. Overall, MercadoLibre is an e-commerce giant that allows investors to invest in Latin America with lots of stability.
First Solar Incorporated (FSLR)
First Solar Incorporated (NASDAQ:FSLR) is a manufacturer of solar panels and a provider of utility-scale PV power plants and services in construction and maintenance.
FSLR stock grew 236.13% in the past 5 years. The global solar power market size is projected to grow from $234.86 billion in 2022 to $373.84 billion with a 6.9% CAGR from the rising population in developing countries.
Q3 2023 revenue of $801.09 million grew 27.37% YoY. Diluted EPS of $2.5 grew 643.38% YoY and beat analyst expectations by 22.58%, and net income of $268.4 million which grew 645.88% YoY.
First Solar has embarked on an expansion strategy forecasted to grow its footprint to 14 GW of nameplate capacity in the US and 25 GW globally by 2026.
In addition, First Solar has recently announced an agreement to supply 500 megawatts of advanced Series 7 thin film modules to Swift Current Energy, an owner and operator of utility-scale clean energy assets.
Modules are expected to be delivered between 2027 and 2028, and this agreement reinforces First Solar’s value proposition for sustained growth in the long run, making it a great candidate to beome one of the trillion dollar stocks in the long term.
Yahoo! Finance reports 23 analysts having a mean 12-month price target of FSLR stock to reach $234.27, with the range spanning from $157.56 to as high as $326.00. The overall contribution of solar to the global energy mix is expected to surpass coal by 2027, so FSLR is a stellar stock to invest in.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
