Fiverr (FVRR)
Online service marketplace Fiverr (FVRR) allows individuals to sell their services, and for buyers to find, research, and hire them. The company’s verticals include graphic and design services, digital design services, video and music tools, and more.
Plus, Fiverr offers value-added content and subscription-based services. That can allow companies to scale up their needs for outside services as necessary. And in today’s digital age, it can mean that workers have a global network they can tap into for selling their services.
Fiverr has been growing revenues slowly over the past few years, but the platform is becoming one of the largest global networks. That could allow them to better profit from opportunities in the digital services space.
Best of all, Fiverr notes that their user base remains engaged. While many may go to Fiverr for a one-off service, they have a loyal following with a large base of active buyers that’s held steady amid the economic uncertainty over the past few years.
Currently, Fiverr trades at a valuation of about $1 billion. Given the growth of digital services and Fiverr’s leadership as a platform, it’s a stock that could easily double, and go far beyond that in the years ahead.
Coinbase Global (COIN)
Cryptocurrency brokerage firm Coinbase Global (COIN) is already a pricey stock. But shares could double easily for several reasons.
First, shares tend to trade in sympathy with moves in the cryptocurrency market. That’s allowed shares to more than triple from their lows in 2021 when cryptos were in a bear market. Today, a new bull market is underway, and still has most of its move to play out.
Next, Coinbase is the custody of choice for nearly all of the 11 bitcoin ETFs that were approved for trading by the SEC at the start of 2024. Custody services indicate Coinbase’s industry leadership, but also the prospect for collecting fees and other crypto assets from interested investors.
Finally, Coinbase tends to print money in a crypto bull market. Capital comes pouring in when prices rise, and as a brokerage, Coinbase can perform its services with a hefty profit margin.
While Coinbase may not rally as much as a popular cryptocurrency, its shares stand to see substantial gains amid the next crypto bull market.
At present, the company’s hefty cash flows aren’t going to shareholders. But in time, this is a strong candidate to initiate dividend payments and share buybacks.
Warner Bros. Discovery (WBD))
Media stocks have been out of favor with the market in recent years. There was an initial burst of enthusiasm as these companies embraced their own streaming platforms.
Now, that market is saturated, and consumers feel like they’ve simply replaced cable with a more expensive and roundabout alternative.
However, the upside of that is that many media companies now trade at a reasonable value relative to their library of intellectual property. One inexpensive media stock that could double is
That’s because shares trade at about half their book value, which may understate the value of some properties and franchises. And shares trade at 0.5 times their price to sales, indicating another sign that the market is overly pessimistic here.
Currently, WBD is working on improving the profitability of its streaming operations, and generating free cash flow, which is now in excess of $5 billion annually. The company is working to pay down its massive debt load, and a substantial reduction there could be key for future gains in the stock.
As with many media companies, there’s no clear upside catalyst to drive shares higher yet. But with a potential asset sale or industry consolidation, an inexpensive stock in the space like WBD could see the biggest percentage move higher.
Hudbay Minerals (HBM)
The commodity market has started to show some signs of life in recent years, after spending most of the 2010s in decline. One commodity that tends to fare well during a bull market for the asset class is copper.
One small copper play is Hudbay Minerals (HBM). They operate a number of properties in North and South America, particularly in Peru.
Besides mining copper, Hudbay’s properties also produce valuable metals such as gold, silver, molybdenum, and zinc.
While shares of this copper play have already doubled in the past year, a commodity rally tends to take years to play out. That suggests fare more upside ahead for shares.
Operationally, Hudbay has a reasonable balance sheet with a low debt to equity ratio. And the company’s operations are in places politically friendly for copper mining.
Hudbay even pays a small dividend of a penny per share, which works out to a 0.2% dividend. Further increases could be in the cards if copper prices soar and Hudbay has excess profits to put to work.
If the commodity markets really take off, Hudbay could also be an acquisition candidate by one of the larger copper or metal mining companies. That would likely mean an offer carrying an instant premium to where shares recently traded.
Whether or not that happens, conditions are ideal for the share price to trend higher.
Bloom Energy (BE)
The energy sector can be one of the most volatile in the markets. When stock sold off in 2022, energy stocks soared. In 2023, when the markets roared back, energy prices slid and most energy stocks slid with them.
Today, conventional energy stocks are seeing strong demand. But green energy plays are out of favor. The high costs, government subsidies, and other factors don’t make them attractive right now.
Straddling conventional and green energy, Bloom Energy could be a big winner, even if energy prices don’t take off. That’s because the company designs and creates fuel cell systems that allow facilities such as data centers or warehouses to convert fuels into electricity.
That includes conventional energy sources such as natural gas. But it can also include hydrogen or biogas. The end result is a more robust and diverse local power grid that’s less susceptible to downtime.
Bloom Energy tends to see big moves up and down in shares. Currently, shares have been trending down. But they now trade at a value that could see them soar higher.
Since going public in 2018, Bloom has yet to turn a profit. But revenues have been trending higher the past few years, and the company has been inking large deals with data centers and other facilities with on-site electricity generation needs.
Analysts have become bullish on the stock, and reliable energy demand shows signs of increasing, especially with the growth of data centers catering to AI needs. Shares could easily double if investors realize that Bloom Energy is a secondary play on the AI market.