In the world of stock markets, there are times when customers panic and sell while savvy investors find incredible profit opportunities. Last year’s bear market, though painful, created numerous chances for astute investors who were able to see beyond the negative noise. And even though some may fear that they missed out on the recent rally, there are indications that the next big winner is just starting to emerge.
To be ready to jump on the next ‘big winner,’ as renowned investor Peter Lynch calls it, investors need to understand the characteristics of a winning stock. In stock market terms, a ‘big winner’ refers to a stock that has increased its value tenfold since its original purchase. Those fortunate enough to secure a ‘big winner’ know how appealing it can be.
The ideal time to invest in a potential ‘big winner’ is after a severe bear market, when stock prices are low. The decline in demand and negative consumer sentiment create a unique opportunity for bullish investors. While the market shift may be gradual at first, prices can quickly reverse course and yield substantial gains within a short period.
Companies like Nvidia (NVDA) and Meta Platforms (META) have demonstrated the potential for significant appreciation, with both stocks surging by over 200% in the last decade. These technology giants continue to exhibit promising growth prospects, with NVDA currently ranked as a Zacks Rank #1 (Strong Buy) and META holding a Zacks Rank #3 (Hold).
However, to find the next ‘big winner’ in the coming months and years, investors may need to look beyond the current market leaders. The market’s risk-reward profile has improved considerably compared to the previous year, and there is a growing appetite for risk in the market. The key is knowing where to look for stocks with the potential to become ‘big winners’.
Finding Hidden Gems in the AI Space
One area that has garnered attention this year is artificial intelligence (AI). Numerous AI-related stocks and ETFs have experienced significant growth. In particular, robotics and machine learning are expected to drive the future, creating new markets and boosting stock prices. Pinpointing relatively smaller AI companies with a high potential for revenue and earnings growth is a good starting point.
To make the most of the disruptive innovation expected from these technologies, investors should be prepared to act when the right opportunity arises. Having available funds and being ready to make a move are crucial strategies.
If you’re looking for the next big winner, keep an eye on the AI space. The possibilities are vast, and the potential for exceptional returns is within reach.
Discover 5 Stocks with Potential to Double
Our experts at Zacks have identified five stocks that they believe have the potential to double in value. These handpicked stocks have had remarkable success in the past, with some soaring over 600%. Many of these stocks are under the radar of Wall Street, providing an excellent opportunity to get in early.
If you’re interested in seizing potential home runs, check out the 5 Potential Home Runs.
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For a detailed analysis of specific stocks:
- NVIDIA Corporation (NVDA) : Free Stock Analysis Report
- Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
- Meta Platforms, Inc. (META) : Free Stock Analysis Report
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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Nasdaq, Inc.