The Category Killers: 10 stocks with huge upside potential

Dear friends,

I am always on the look out for stocks with dramatic price appreciation potential over the coming years in an effort to find the next Apple, Amazon or Facebook.

Today I introduce this list as The Category Killers: these are the stocks I believe that have significant upside potential over the next 3-5 years. As a minimum, I expect these stocks to AT LEAST double in their share price / market cap price over the coming years.

More specifically, I like these companies as they have very high revenue growth rates, improving operating metrics, big tailwinds behind their back and are clear industry leaders with a long runway ahead.

Over the coming weeks, I plan on doing deep-dives into each of these investment opportunities.

Without further ado, here are the Category Killers.

The Category Killers

In alphabetical order, the Category Killers that can make you a fortune over the coming years:

  1. Alteryx (AYX)

  2. Coupa (COUP)

  3. CrowdStrike (CRWD)

  4. DataDog (DDOG)

  5. Fastly (FSLY)

  6. Livongo (LVGO)

  7. Okta (OKTA)

  8. Roku (ROKU)

  9. Twilio (TWLO)

  10. Zoom (ZM)

I will be closely monitoring their businesses. As a side note, this would also be my stock picking portfolio to track against the market indices.

A word of caution…

I don’t believe in the terms “cheap” or “expensive” when evaluating individual stocks as things are only cheap or expensive for a reason! There is a reason why Ferrari costs more than a Ford!

However, before you jump all-in into the category killers above, it is worth noting that the valuations of many stocks in general and software stocks in particular have now become EXTREMELY “RICH”. The Category Killers are no exception; however, I believe in incremental buying and holding the best companies (“category killers”) over the long term to outperform the mediore market indices.

Given the “rich” valuation for many of the category killers (more on this in separate deep-dives to follow), it is likely that the business growht will outperform the growth in stock price over the coming years. Having said that, Mr Market will always gives us several windows of opportunities (the last one being the COVID-19 fears) to add to our core positions.

Rather than buy all stock all at once, my approach is to buy in increments but to make it systematic as long as the core thesis is intact. To be successful, one does not only needs to be pick the best stocks but also have the right mindset so when the market tumbles (and this is only inevitable at some point in the future), our mindset helps us to overcome fear and switch to one of courage as we are getting investments we want to own for lower prices.

Enough said, hope you enjoy the post!

Disclaimer: author is long all stocks mentioned above at much lower prices; this is not financial or investment advice - do your own research!

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