Could This Beaten-Down Stock Be the Next 100-Bagger?
Many would argue that searching for 100-baggers -- stocks that return $100 for every $1 invested -- is as likely as winning the lottery. It definitely requires some luck. But not that much. Focusing on a few attributes of a business can dramatically increase the chances of life-changing returns. But those same attributes can increase the risk of underperformance or even collapse. That's why trying to find them makes sense as part of a diversified portfolio.
I think Teladoc Health (NYSE: TDOC) has the potential be a 100-to-1 investment for those willing to hold their nose after a 90% drop in the stock price. The company is finally working through its COVID hangover, and the key ingredients are all there for those with a little luck and a lot of patience.
Asked to name the best investments of the past three decades, many will undoubtedly come up with Apple, Amazon, and Microsoft. Some might even be aware that Monster Beverage has delivered an absurd $3,900 for every $1 invested in 1990. But how many would be able to name UnitedHealth Group or Roper Technologies? Or there's Paychex, Texas Instruments, and Cisco Systems -- companies with stock prices that have grown between 80 and 200 times in value.
Source Fool.com
