7 Top Long-Term ‘Millionaire-Maker’ Stocks To Buy In 2021
Top 7 Stocks To Buy To Make You A Millionaire
If you're an investor who is looking to find the best stocks that can give you stability, reliability and great earnings potential, take a look as we have 7 top ‘Millionaire-Maker’ picks that look set to be the perfect investments.
One certainty about growth stocks is that now more than ever before as we sit within challenging times, investors are looking to add and be a part of some of the best long-term growth stocks on that market today.
Not only do growth stocks look to offer attractive returns, but finding the best growth stocks on the market that offer a mix of reliably, stability along fantastic future prospects is a key, especially as we have seen through 2020 proves that anything can happen. Looking into 2021 and beyond, being a part of such stocks can be extremely rewarding and exciting as they continue to grow to new highs but are surrounded comfortably by strong financial elements.
Although large-cap stocks such as Microsoft (MSFT) offer great returns and stability, stocks that are of such magnitude will not grow your returns as much as these ‘Millionaire-Makers’. Additionally, small-cap stocks are on another scale, as although these stocks have great potential of delivering huge growth success, they do however hold strong risk factors and be extremely volatile, and within this very challenging time, it may not be the time to start taking such risks.
List of 7 Millionaire-Maker Stocks to Buy in 2021:
- Starbucks (SBUX)
- Green Thumb Industries (GTBIF)
- Square (SQ)
- Fiverr International (FVRR)
- Brookfield Asset Management (BAM)
- Illumina (ILMN)
- Splunk (SPLK)
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What Makes A Stock A ‘Millionaire-Maker’?
If you're new to investing you may wonder as to what makes a stock a ‘Millionaire-Maker’, and this answer is pretty straight forward. A stock that sits within a healthy financial position that has high potential for growth along with adding the safety net of stability under your feet.
Of course, doing your homework on any stocks is advised to determine if a stock is worth investing your earnings into. But to specifically research stocks that have the potential of making you wealthy over the long-term period, it's worth your while looking deeper into these stocks to see if your goal of being a millionaire in the long-term is achievable.
What Key Elements To Look For Within A Millionaire-Maker Stock?
As mentioned above, looking into a stock's fundamental elements is key when looking to invest within any stocks. But what to look for within a stock is maybe the question on your mind that you are looking to figure out.
Firstly, any stock that is of interest is worth looking at the industry in which the stock sits in. For example the cannabis industry, this industry that is set to soar as we lead through 2021 and beyond posing huge growth potential not just for individual stocks but for the industry as a whole.
Secondly, before looking specifically into a stock’s overall financial fundamentals, it's worth looking at a stocks market capitalisation, this is a big indication if a stock can look at increasing significantly. For example, take Amazon (AMZN) who has a market cap of 1.6 trillion, realistically this stock is not going to multiply by up to 10 times as much, which looking at a stock who has a reasonable sized market cap has the realistic potential of reaching double digits within the billions, this is a good factor to look at when looking for such stocks to start with.
Having said that, there are a lot of stocks on the market that hold a smaller market capitalisation that hold a lot of risk elements, whilst mid-cap stocks hold a more stable position with great growth prospects.
Then it is time to take a look into a stock’s fundamental elements, these include looking at a stock’s revenue to see how well the company has been growing as if the stock has an attractive and visibly good revenue growth over the years, this is a good indication that a stock has the potential to carry on growing moving forward.
Other key fundamentals to look at include the stock’s balance sheet to see how a stock sits financially, using various metric ratios including P/E (price- to - earnings ratio), P/S (price-to-sales ratio) and ROE (return on equity ratio). These ratios will give you a clearer understanding if this stock is over or undervalued based on the company's share price mixed with the company’s earnings per share, whilst the ROE ratio shows how much profit each dollar of common stockholder’s equity makes, whilst the P/S ratio is another metric to use to look at growth potential as it shows how a business is valued in relation to sales.
Aside from the best elements to look at to determine if a stock is a potential ‘Millionaire-Maker’, a good strategy in order to help simplify a stock’s estimate is the ‘Rule of 72’. The Rule of 72 can be applied to anything that has the ability to increase, it is just a matter of dividing 72 by a stock’s rate of return to be able to give you an estimated time for the stock to double your earnings.
Having given a clear indication of what a makes a stock a ‘Millionaire-Maker’, what to look for within a stock and how to estimate how long it will take for a stock to grow, now it's time to take a look at 7 top stocks that look set continue their road to success.
1. Starbucks Corp (SBUX)
The American multinational coffeehouse and roastery reserve that has caught the hearts of millions around the globe whilst it continues to draw in millions more for its coffee and uniqueness is Starbucks Corp (SBUX).
The American corporation that is headquartered in Seattle, Washington has been a remarkable stock to invest in and one in which has seen its investors become wealthy over time as the company has gone from strength to strength. In recent days, this stock is not showing any signs of slowing, in fact, the opposite as the stock continues to deliver top coffee along with creating more uniqueness.
To start Starbucks Corp like many companies on the market today hit hard times over 2020 as the Coronavirus pandemic hit, seeing store closures sweep across the globe including many stores to date who are currently closed in efforts to seize and prevent the ongoing spread of this virus, with many stores not offering any services at all.
Having said that, the positives are outweighing the negatives for this brand. Since the trouble hit this coffee stock within 2020, it has managed to come back to the positive as we head towards a new normal. It was apparent to see that the demand has been strong by consumers across the globe as stores, drive-throughs and mobile-ordering services have been strong outlets for the brand and bringing in fantastic revenue from all across the globe leaving Starbucks Corp in a good position as we move forward.
Within the company’s fiscal Q1 released on January 26th 2021 shows a solid move forward despite the current global situation, China witnessed a 5% increase in-store sales whilst Starbucks International segment ended 5% year-over-year with the added boost brought from China, bringing in net revenue of $1.7 billion with a further 1,038 new stores operating adding to this increase in sales. Operating income for the international segment was almost on par with 2020 as it was confirmed at $274.8 million within Q1 in comparison to $275.9 million in 2020.
The American side of the business was slightly behind due to restrictions and the impact Covid-19 holds on the coffee brand, Net Revenue was down by 6% to $4.7 billion in comparison to $Q1 2020, operating income naturally took a decline due to less operation which reduced by -26% to $813.5 million in comparison to $1.1 billion in 2020. 105 new stores did open across the U.S however, this will add in the long run to the brand’s revenue without any doubt.
Overall Starbucks has confirmed that 278 new stores have been opened in the first fiscal Q1 2021, a 4% year-over-year unit growth. A collection of Net revenues brought a total of $6.7 billion brought in for this stock over Q1 took a slight decline by 5%, heavily due to lack of consumer sales due to Covid-19, including the stocks operating margin being down by 3.7% YoY and GAAP earnings per share (EPS) sitting at $0.53 down by $0.21 year-over-year.
All of the stocks reported earnings although, aside from the International segment, is showing a downside, is actually positive news for the stock. When you look at the demand within these challenging times including Starbucks Rewards loyalty program which increased in the U.S to 28 million, that is a 15% increase year-over-year even in uncertain times with limitations.
Looking to the future, Starbucks is looking to add and progress forward with significant growth within 2021 and no doubt over the years as this market is one in which many are drawn too. Starbucks has detailed within its 2021 Fiscal guidance that it looks to archive between 10% to 23% in Global store sales growth, a rough guidance of 2,150 new store openings with 1,110 net new stores internationally and consolidated revenue of between $28 billion to $29 billion for the year-end summary.
The growth potential is definitely visible to see. However, now looking at this stock’s valuations including its share price and EPS ratio, to which looks like it is slightly holding up on the higher side, holding a share price of $105.30 and an EPS of $0.56 it is potentially actually set almost right given what this stock can achieve as we lead forward.
Starbucks will arguably not see a huge downside within its share price, especially as we lead closer to limitations being eased over the coming months, which leads now an ideal time to start looking and invest within this leading coffee stock which definitely has the footings of being a millionaire stock for investors, which it has proven on its strong past record.
2. Green Thumb Industries Inc (GTBIF)
It comes as no surprise that stock within such an eagerly anticipated industry makes the list of top stocks that could make you wealthy. Green Thumb Industries Inc (GTBIF) makes this list as a cannabis stock that you should look to buy for 2021.
Green Thumb Industries prides itself on delivering the highest standard on growing and serving consumers with safe and high-quality cannabis for both medical and recreational use with the firm aim to enjoy cannabis for health, happiness and comfort.
The cannabis company offers its range of products through various brands such as Dogwalkers, Beboe Therapies, incredible and more ranging from sweet treats to oils. Set across 11 states within the US and with a new operating manufacturing facility within Oglesby, Illinois which was operating, producing and distributing products for all of its connections, along with capable facilities within New Jersey and Ohio. But this cannabis stock has its presence set firm within the state of Illinois, being its home state for one, and secondly, Illinois has risen in consumer demand for cannabis which is another strong bonus for this stock as they currently have more stores based within this state than any other within the U.S.
Whilst business development has been confirmed, now looking at this stocks key figures within the companies third-quarter report looks like this cannabis stock is one that you may wish to get familiar with, and fast.
Within the company's Q3 report it was reported that the quarter was an 'excellent’ three month period as the company produced excellent results growing by 31.3% within Q3 contributing to a 131% year-over-year staggering increase to $157.1 million. The revenue growth was pushed by a strong increase in consumer Packaged Goods and Retail businesses which led Gross Margin to increase to 55.4% from 53.2% within Q2.
The state of Illinois became the 11th state to legalise recreational cannabis usage within 2020. This caused a huge surge in demand pushing sales figures through the roof for this cannabis stock and as more states look to confirm legislation from recreational usage of marijuana, given this stocks positive financial position and the states in which it currently operates in, whether it be through their own stores or through various partnered brands, this should work in this stock favour for growing success.
As it stood on September 30th 2020, the company confirmed that its financial position was undoubtedly strong with current total assets at $159.1 million including cash and cash equivalents of $78.1 million with an outstanding debt of $97.1 million, this has set this cannabis stock in a very attractive financial position.
Holding a current share price of $36.44 which has increasingly risen over the past year due to recent happenings within the industry and happenings within this company, the stock holds a 52-week range of between $4.08 at its lowest and $38.45 at its highest.
This is certainly one marijuana stock that has the footings and the makings of becoming a millionaire stock over the long-term outlook, and to be a part of such a blossoming industry that is set to soar within the coming years.
3. Square Inc (SQ)
The American financial service company comes next on the list as a stock that has great potential.
As the world continues to move heavily into a digital world, Square Inc (SQ) is proving to be one company with its strong ecosystems designed for both ends of the spectrum, sellers and buyers, along with new additions as it seeks to improve or add new benefits to their creative creations.
From where it all started for this stock with the Square Reader device, today has progressed and expanded into various avenues and is proving to be a success, especially more so within 2020 as the Coronavirus pandemic brought many challenges to business owners across the globe.
With the company's most recent creation the Cash App, which came into play in late 2013 under the name Square Cash, this app has been fitting for many positive reasons over recent years as it offers ease and simplicity for individuals to keep a hold of their accounts. The app is designed to be able to receive and send money transfers through the app or website, along with adding new benefits including a recent feature which allows individuals, organisations and business owners to arrange and sort their own taxes, this is just one of many features.
What may people not know, along with this stock having its hands in many successful avenues, there are also many hospitality retailers that use Square Register to which is used to process transactions for customers who pay via debit or credit card methods.
On this note, this is what has taken a huge hit for this stock over the year as the hospitality sector has taken a huge hit brought on by the Covid-19 pandemic which has seen SQ stock take a hit within this avenue. But what has gone in this stocks favour over the year? The stocks ability that helps individuals operating remotely with their organisations and businesses across the globe, including its Cash App.
Within this stock's Q3 results it's clear to see that the Covid-19 pandemic has helped this stock significantly to see its true potential to be seen, as almost all financial areas were way ahead in positive colours. Gross Profit hit $794 million up 59% year-over-year, Seller Gross Profit hit $409 million 12% up YoY, Total Net Revenue increasing by a staggering 140% YoY to $3.03 billion with its Cash App Gross Profit hitting 212% YoY to $385 million. The company also witnessed an Adjusted EBITDA increase by 38% to $181 million.
These figures are impressive, to say the least, and now that individuals are well on their way with operating smoothly, this stock still has huge growth potential to archive ahead, so much so that it has been conscious ‘Buy’ rating by Wall Street analysts with 18 out of 36 Wall Street analysts giving this stock a ‘Strong Buy’ rating.
But this company, like many, holds its down points to which is looking like its high valuation. Taking into consideration the companies trailing twelve-months P/E ratio of 373.63 the valuation for this stock indicates that it is overvalued without question.
Although this stock is certainly one that can look to deliver promising and wealthy returns, it is worth potentially hanging back until the price for this stock sits at a more reasonable figure.
4. Fiverr International LTD (FVRR)
The Israeli leading online marketplace for freelance services is providing a unique force that is not to be taken lightly, as this stock has done incredibly well.
Designed to attract both buyers and sellers with an array of various services which include writing to graphic design and all in between, has since graced the list of top 200 popular sites in the world and as of February 2020. It was reported that the company brought in a yearly revenue result of $107.1 million for the fiscal year 2019, which for a company that launched in 2010 is growing closer to vastly becoming growing hit stock.
In recent news, this stock is continuing to accelerate and grow into new horizons as Fiverr International have just confirmed the recent acquisition of Working Not Working, which is a U.S creative platform similar to Fiverr that helps creative individuals seek to find their next freelance opportunities, to which this stock works with some of the biggest and strongest brands on the market today.
Following this news brought a rise in this company's share price which today stands at $323.10 and a share price which has risen steadily over 2020 to its new highs.
Within the companies latest Q3 results, this stock has proven that it is possible to archive blinding figures to which there is no doubt that these results have been spurred on and accelerated to these new highs by the Covid-19 pandemic. The company reported a revenue growth of 88% year-over-year to a whopping $52.3 million and with its active members increasing by 37% to 3.1 million as individuals seek for more freelance work opportunities.
Looking at the bigger picture for FVRR stock, the financial outlook is looking set to potentially hit just under 80% year-over-year to a guidance figure of around $186 million with Adjusted EBITDA to be between $8.5 million - $9 million overpowering prior FT 2020 guidance of $4.5 to $6.5 million.
The company, as mentioned above, is proving to hold solid market share as it looks set to expand and has done so already, as it seeks to potentially become the biggest freelance marketplace on the market to date and there is more than enough room for this stock to carry on growing for many more years to come.
Again like other aspiring glowing stocks on this list, FVRR also looks rich in terms of its valuation, it’s share price has almost increased 14x from March to where it stands on the market today, so waiting to jump on this stock at the ideal time is the best solution.
Looking at other key fundamentals for this stock is showing a natural balance including a healthy operating cash flow position of $9.45 million, the stocks profit margin is increasing which is reaching profitability and almost hit 25% over the past year, however, FVRR’s debt-to-equity ratio is showing that the stock is on the high side at 0.45.
There is no denying that there is still plenty of room for movement as this stock continues to collaborate creative freelance individuals across the globe and the world continues to dive deeper into the digital world for many years to come, this stock truly has the definite makings of becoming a stock that can look at hitting the millionaire status over the long-term outlook. But being a part of this stock at the right price is the biggest point of advice before jumping straight in.
5. Brookfield Asset Management Inc (BAM)
Adding more diversity to the list, Brookfield Asset Management Inc (BAM) hits the list of being a top stock that can look at delivering good returns over the long-term.
The alternative asset management company which has its office presence in New York, Toronto, London, Sydney and Rio De Janeiro focuses their attractions on real estate, renewable energy, infrastructure and private equity, and the company has been delivering with their spectacular results.
To start, the company has accelerated their plans within 2021 for growth prospects ahead, inputting a whopping $44 billion into the company as they seek to expand in the long-term along with having free operating cash flow for any additional extras along the way.
Secondly, looking into the company's recent figures within Q4, its Net Income hit $1.8 billion and record funds hitting $2.1 billion driven by growth and sales. This is not to mention additional third-party avenues that the company is also involved in which raised approximately $40 billion of third-party fund capital within the year.
The company is also a strong dividend stock which saw a solid dividend increase to 8%, $0.13 per share which is due to be paid to shareholders on March 31st 2021.
There is much to rave about on this asset management stock but it also does come with its down points that are worth looking at including its debt-to-equity ratio which currently stands high at 5.92, but if this stock continues to drive and push forward whilst bringing down its debt levels over the period this should not be a cause for concern with this stock.
Based on this stock's share price which stands at $42.95, which has been deemed to be volatile over the year as it has risen as quickly as it has looked to decrease. But based on other metric ratios including its PB (price to book) and P/E ratio of 22.49, makes this stock a good value to jump on to.
Brookfield Asset Management Inc is certainly a stock that holds strong and promising prospects to becoming a stock that can hit the big-time, in fact, analysts have even deemed that this stock is estimated to be worth 40% more than where the stock is currently sitting at the moment, which confirms the point above that now is an ideal time to invest in this stock.
6. Illumina Inc (ILMN)
The American healthcare company Illumina Inc (ILMN) is a biotech company which has the makings of becoming a millionaire stock, as it has proven.
The company which develops, manufacturers, and markets various systems in order to analyze genetic variation and biological functions, along with offering products and services that serve various markets, has operated at such a level it has managed to gain a market cap of $73.69b through its continued success.
Although this stock is deemed to be a healthcare giant, to which it is, it still has the potential in order to make investors very wealthy as mentioned, as it continues to develop and grow to which has already made investors rather wealthy up to this point. Wall Street analysts have predicted this healthcare stock to increase its revenue by 20% per year, whilst being given 6 ‘Strong Buy’ ratings resulting in an overall consensus ‘Hold’ for the stock.
Looking at the company's recent earnings within its Q4 period it surpassed many expectations. Within Q4 the company's revenue grew by 20% to $953 million surpassing forecasts and $1.22 per share came in above expectations also and it is not going to end there as the world steps closer to coming out of the shadow of the Coronavirus pandemic enabling more force to be driven.
Today Illumina Inc has a share price of $504.76 which has jumped above 75% over the past year, and again like other stocks, this stock is trading above the market and industry averages based on this stock's P/E ratio but is looking good value when compared to its P/B ratio of 15.68. Despite this stock's rich valuation it holds all of the making of delivering, and delivering at impressive amounts if you catch this stock at the right price.
7. Splunk Inc (SPLK)
The last stock to come on the list of 7 top stocks to own is Splunk Inc (SPLK).
Splunk Inc is a San-Francisco based software company that specializes in producing software to search, monitor and analyse machine-generated data.
From the company's latest Q3 report a statement which sums up this software stock by the company's CEO, Doug Merritt, speaks for itself along with the stock's reports.
“Even in the face of uncertain market conditions, Splunk remains one of the fastest-growing companies in the history of enterprise software.” stated Doug Merritt, CEO of Splunk Inc.
Looking at how well the stock performed, Total revenues although down YoY by 11% to $559 million, various sectors were up including Cloud ARR up 71% YoY to $630 million, Cloud revenue up 80% YoY to $145 million, Total ARR up 44% YoY to $2.07 billion.
These are just a few of the highlights within the Q3 report, along with the confirmation of new business highlights as the company is on course to acquire more businesses into the mix adding more future growth potential within companies spreaded across the globe.
Looking at the fourth quarter for this stock the company has given a guidance with Total revenues expected to be between $650 million and $700 million and a Non-GAAP operating margin is expected to be between -4% and 3% giving the stock a realistic outlook.
There is no doubt that Splunk’s data services are going to continue to evolve with potentially many leading companies wanting to benefit from their software, there is no reason analysts are predicting this stock to potentially double within its sales by 2025.
Given a consensus ‘Buy’ rating, this stock will no doubt hit profitability as it drives forward to deliver especially if this stock reaches revenue forecast prediction of 24% per year.
And there you have 7 top stocks that are sitting in a position that could potentially make investors earn millions in the long-term outlook.
All of these promising stocks sit in a position of stability, a good financial position, although some may not be profitable as yet, they still have the capability in order to become so as time moves forward. These fantastic investments are great additions to keep hold for the long-run as you seek to hit that six-figure sum whilst adding diversity with other stocks to your collection is always worthwhile.
If you are new to investing these chosen stocks are great additions to add to your portfolio, a stock such as Starbucks Corp (SBUX) might be a great stepping stone to start with as it offers great growth as we move forward, especially at a good price which can lead to great returns.
If you are an experienced investor, aside from the cannabis industry, Fiverr International LTD (FVRR) is looking like a stock with a huge prospect looking ahead as it seeks to dominate.
Although these stocks hold positive outlooks, it’s wise to conduct additional research before investing in your chosen stocks, as like with all stocks they do pose their own risk elements.
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