2 Stocks That Could Double Your Money

Finding investments that can generate returns of 100% or more in relatively short periods of time is challenging but certainly not impossible. In fact, well-chosen growth stocks can easily help you double your money in periods of 3-5 years — and potentially even sooner.

Here are two stocks that just might have what it takes to deliver these types of fortune-building gains.

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Redfin 

If you’ve ever sold a home — or know someone who has — you likely know just how expensive it can be. Seller agent commissions can run as high as 3% of the total value of a house, which equates to $7,500 for a $250,000 home. Redfin (NASDAQ:RDFN) is helping to change this outdated and costly system. By saving its customers thousands of dollars, it’s positioned itself to claim a larger share of the $80 billion U.S. brokerage industry. 

Redfin’s online-based approach and salaried agents allow it to charge home sellers commissions as low as 1% of the sale price of their house, or about 67% less than the typical agent fee. More home sellers are beginning to take notice, and Redfin is quickly gaining market share. It accounted for 0.96% of the value of existing-home sales in its most recent quarter, up from 0.81% in 2018, 0.67% in 2017, and 0.33% back in 2014. Yet with its share of this enormous market currently at only about 1%, Redfin can still grow exponentially in the years ahead.

Better still, Redfin’s ancillary services are helping to expand its already massive market opportunity and fuel its growth. Its “other revenue”  — which includes sales from its mortgage and title businesses — surged 92% year over year to $5 million in the third quarter. Redfin also has a fast-growing home-buying business, which is enticing more customers to use its platform and further boosting demand for its brokerage, mortgage, and title services.

All told, Redfin’s $2.3 billion market capitalization belies its incredible growth potential. As such, investors who buy shares today could easily double their money over the next half-decade — and potentially much sooner.

Aurora Cannabis

Canadian marijuana producer Aurora Cannabis (NYSE:ACB) is another stock with the potential to help you quickly earn gains of 100% or more.

The cannabis industry is expanding at a rapid rate. Analysts at investment bank Stifel estimate that global marijuana sales could grow to $200 billion by the end of this decade. With its industry-leading cannabis production capacity and international footprint, Aurora is well-positioned to capture a significant portion of the industry’s profits in the coming years.

However, Aurora’s stock is down sharply in recent months. And is currently valued at only $2.2 billion. Investors have understandably grown concerned about Aurora’s withering cash reserves and ability to fund its growth initiatives. But these are challenges that can be solved quickly if Aurora were to sell an equity stake to a larger company, such as when fellow cannabis producer Cronos Group sold 45% of its shares to tobacco titan Altria for $1.8 billion in late 2018. Even if Aurora were to raise a smaller amount of capital via a similar deal, by alleviating its cash concerns, its stock price would likely explode higher on the news — potentially doubling your money in the process.

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