With the Nasdaq and S&P 500 on a running spree, it is easy to pick stocks on momentum. But if you are investing for the long term, you need to pick stocks that will grow your money at little risk. $10K isn’t a small amount, and it is possible to turn it into $1 million with the right stocks. I’ve identified three high-growth potential stocks that can make your $10K into $1 million over the next few years.
These stocks are already trading at a premium and have proven their strength in the past six months. As we enter the second half of the year and before the earnings season begins, invest your $10K in these solid stocks and take home significant gains. These are some of the best companies in the market right now. Without further delay, let’s dive deep into them.
Microsoft (MSFT)
A top tech stock, Microsoft (NASDAQ:MSFT) could be one of your best bets to turn your $10K into $1 million. A legacy business, Microsoft has a presence in multiple industries including social media, gaming, artificial intelligence, and office productivity. The stock has had an impressive run and is one of the most valuable companies in the world.
Trading at $466, the stock is up 25% year-to-date and 40% in the past 12 months. While the stock is at its 52-week high, there is still room to grow. Microsoft’s timely investments in OpenAI have started to pay off and it has successfully integrated AI into its products and services.
The company has shown the ability to evolve with the changing landscape and is advancing in AI with aggressive expansion plans. It has committed billions towards the development of AI infrastructure in Japan and Germany. The company offers a generative AI assistant on its Copilot and it has also revealed new AI-enabled PCs and laptops.
For years, no company has been able to come close to the domination of Microsoft and I don’t think any company will be able to in the next ten years. It has a highly successful cloud unit which generates billions in revenue.
In short, Microsoft is one of the best stocks to buy and hold for the long term. It will generate passive income for you in the form of dividends while also ensuring steady capital growth.
Eli Lilly (LLY)
Another high-growth potential stock enjoying the limelight is Eli Lilly (NYSE:LLY). The pharmaceutical company is known for its weight loss drug, and the stock is up 55% YTD. Trading for $918, LLY stock has grown 102% in the past 12 months. It has a range of products in the pipeline and is currently raking in money with the weight loss drug Zepbound.
The company has more promising weight loss drugs that could soon become a part of its portfolio. It has an oral pill which is in the late-stage trials and another drug, Retatrutide is in the phase 3 trials. LLY is one of the top high-growth potential stocks to own.
It saw a 26% YOY jump in revenue in the first quarter, and the EPS soared 59%. The company reports earnings next month which is why there’s no better time to buy the stock than now. It has high growth potential and could hit $1 trillion in valuation very soon. It has recently purchased bowel disease drug developer Morphic in a $3.2 billion deal.
Eli Lilly’s Alzheimer’s drug was recently approved which shows that the company has the potential to keep delivering and does not bask in the success of a single drug. There could be a stock split in the coming years and investors will benefit significantly from the same.
Since the stock has become expensive, it could discourage many investors and a split may be necessary. While nothing has been announced yet, I believe Eli Lilly is on a solid growth trajectory and can enjoy a steady upside from the current level.
ServiceNow (NOW)
Tech stocks are hot property, and ServiceNow (NYSE:NOW) is another tech stock enjoying the AI hype. One of the best cloud computing stocks, the company offers a software-as-a-service (SaaS) platform that enables workflow management. Its platform makes it easier for organizations to streamline digital workflow across different departments, and as more companies migrate towards cloud, ServiceNow is set to benefit.
The company has recently entered into a partnership with Microsoft to combine their GenAI capabilities. It will be a collaboration of the Copilot and Now Assist and they will both assist the user in the best possible manner.
One big reason to buy the stock is that its revenue is recurring and this ensures steady growth. In the first quarter, it closed eight new contracts with an annual contract value of over $8 million and has about 2,000 customers with annual contract values higher than $1 million.
Up 11% YTD and 35% in the past 12 months, NOW stock is exchanging hands for $766. The company offers a service that helps business automation and increases efficiency. It has sturdy fundamentals with a revenue of $2.6 billion generated in the first quarter, up 24% YOY, and the outstanding performance obligations jumped 21% YOY to $8.45 billion. The net income came in at $707 million.
On TipRanks, 29 analysts have a buy rating for the stock, with an average price target of $856, an 11% upside from the current level.
On the date of publication, Vandita Jadeja did not hold (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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.