U.S. markets closed
  • S&P Futures

    4,022.25
    +17.50 (+0.44%)
     
  • Dow Futures

    32,267.00
    +108.00 (+0.34%)
     
  • Nasdaq Futures

    12,325.25
    +80.50 (+0.66%)
     
  • Russell 2000 Futures

    1,792.10
    +9.70 (+0.54%)
     
  • Crude Oil

    114.31
    +0.11 (+0.10%)
     
  • Gold

    1,825.90
    +11.90 (+0.66%)
     
  • Silver

    21.66
    +0.10 (+0.48%)
     
  • EUR/USD

    1.0445
    +0.0007 (+0.06%)
     
  • 10-Yr Bond

    2.8770
    -0.0580 (-1.98%)
     
  • Vix

    27.47
    -1.40 (-4.85%)
     
  • GBP/USD

    1.2342
    +0.0018 (+0.14%)
     
  • USD/JPY

    129.2660
    +0.2130 (+0.17%)
     
  • BTC-USD

    29,985.82
    -657.80 (-2.15%)
     
  • CMC Crypto 200

    672.25
    +429.57 (+177.01%)
     
  • FTSE 100

    7,464.80
    +46.65 (+0.63%)
     
  • Nikkei 225

    26,676.83
    +129.78 (+0.49%)
     

Zacks Market Edge Highlights: McDonald's, Starbucks, Portillo's, Olaplex and 1stdibs.com

·4 min read

For Immediate Release

Chicago, IL – November 4, 2021 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

How to Find Your Next 10-Bagger Stock

Welcome to Episode #291 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is going to solo to talk about how investors can find their next 10-bagger stock.

What’s a 10-Bagger?

A 10-bagger is an investing term first used by famed Fidelity mutual fund manager, Peter Lynch, in the 1980s and 1990s.

It describes a stock that returns a 1000%. That would entail an investor buying a stock at $10 and watching it go to $100, for example.

In the 1980s, it meant buying a company with growth but that was also fairly cheap on a valuation basis.

In the last decade, both Tesla and Netflix were 10-baggers.

How to Find 10-Bagger Stocks

You can’t screen for 10-baggers. You just have to get lucky.

It could mean that you were a parent in the 1970s and took your kids to McDonald’s MCD all the time and decided to buy the stock.

Or it could mean you lived in suburban Chicago in the early 1990s, when a coffee chain from Seattle named Starbucks SBUX opened up nearby. You loved it so much that you bought some shares when it went IPO.

But one of the hallmarks of 10-baggers is to buy early on in its history as a public company.

Tracey also likes companies with strong consumer brands.

Buying the IPO

2021 is the hottest year for IPOs since 1999.

Could a future 10-bagger be among them?

1.       Portillo’s PTLO, a popular Chicago restaurant chain that specializes in Italian beef and has a famous chocolate cake. It doesn’t yet have positive earnings. Could it be the next Chipotle or McDonald’s?

2.       Olaplex OLPX is a haircare company with a big following. It’s products, including shampoo and conditioners, are used in salons and sold on its website and also at Sephora, Nordstrom and Bloomingdales. It actually has positive earnings and is expected to make $0.31 this year. Could it be the next big beauty brand?

3.       1stdibs.com DIBS is an online marketplace for design. It includes furniture, antiques, art, home décor, jewelry and watches. It’s used by many interior designers. It went IPO in June 2021 and is expected to grow revenue by 21% in 2021. Niche online marketplaces, such as Etsy, have seen big growth in the last few years.

What else do you need to know about finding the next 10-baggers?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of SBUX in her personal portfolio. No, she didn’t buy at the IPO.]

 

Follow us on Twitter:  https://twitter.com/zacksresearch

 

Join us on Facebook:  https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

 

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

 

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/performance

 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Starbucks Corporation (SBUX) : Free Stock Analysis Report
 
McDonald's Corporation (MCD) : Free Stock Analysis Report
 
1stdibs.com, Inc. (DIBS) : Free Stock Analysis Report
 
Olaplex Holdings, Inc. (OLPX): Free Stock Analysis Report
 
Portillo's Inc. (PTLO): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research