Want a Stock That Can Double? Focus on Revenue Growth
What's amazing about investing in the stock market is that you can double, triple, 5x your money or better by simply buying stocks and waiting.
Looking for stocks that can double is a reasonable goal for most investors, especially if your time horizon is long enough. Considering the S&P 500 has historically generated an average annual return of 9% (when including dividends), the broad market index would typically double every eight years.
If you're looking for stocks that will double even faster than that, you're likely going to be focusing on growth stocks. For a stock to double in five years, it would have to increase in price by 15% each year. Different kinds of factors support stock growth. It all depends on the type of stock. But one factor that's almost always required for a stock to double is revenue growth.
Source Fool.com
