4 Best Stocks With 100x Potential To Invest In June 2023

What are some of the very best businesses trading at fair or better prices today? While no one can predict what will happen tomorrow. In this article, we'll look at a few stocks with 100x potential on a long-term basis.

Even the best investors in history had to deal with times when it seemed like everything was hopeless. For example, take Warren Buffett's partnership during the early years of his career. After two volatile years, he found himself sitting on $140,000 of losses (which is still a significant sum today).

On the verge of quitting his investment career, Buffett was fortunately persuaded to stay on. His luck took a turn for the better, and he quickly amassed over $7 million dollars (which is still a small fortune today).

I've had my fair share of discouraging moments as well — I'm sure we all have — but what matters most is what we do in the face of those moments.

The people that give up or don't know how to bounce back tend not to last very long as professional investors. Fortunately, a few bad months at the start of my career didn't deter me from continuing on and striving toward success.

The world's equity markets have been less than kind to investors over the last year. However, those that have been willing to weather the storm have been greatly rewarded, as many of the best stocks have fallen.

In my time as a professional investor, I've seen a few investing strategies come and go. As a value investor, Buffett focused on buying cheap companies with strong competitive advantages, trading for less than their intrinsic value.

He assumed that each dollar of a company's earnings is worth more the longer it takes to receive them. If a company can earn $1 per year on a book value or tangible book value of $10, it would consider buying on an earnings yield basis.

If instead, they earned $2 on a book of $5, he would be less inclined to invest. On the other extreme, if a company earned $0.50 on $10, he would not even consider the stock. Time has proven Buffett right for the most part.

Unfortunately, buying companies trading at large discounts to their value often entails long holding periods as these businesses may not be easy to turn around. This is why the best strategies are often tested over long periods of time.

According to Buffett, "The goal of the nonprofessional should not be to pick winners — neither he nor his 'helpers' can do that — but should rather be to own a cross-section of businesses that in the aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal."

In my opinion, Buffett makes a good point. The real key to building significant wealth is simple: Invest in excellent companies trading at fair or better prices and hold them for long periods of time. If we can manage that, then we should be able to outperform the average market returns over time.

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Best Stocks With 100x Potential To Invest In 2023

1. Hexo Corp. (NYSE: HEXO)

Hexo Corp is a Canadian cannabis company that recently went public as the first major marijuana IPO of 2018. The stock was an immediate success and has since returned close to 200% for those lucky enough to get in near the bottom.

While nearly every other marijuana stock has continued to tank following the initial excitement over legalization, Hexo Corp has remained strong. I believe that this is due to its tremendous growth prospects, leadership position in the industry, and future potential for international expansion.

Hexo's CEO Sebastien St-Louis was quoted as saying, "Our first priority will always be our consumer, and we will continue to expand on our offering of high-quality industry-leading products.

We look forward to building upon this foundation while expanding geographically and pursuing new market segments in line with our corporate strategy."

Hexo Corp produces and distributes a number of different products, including dried cannabis, cannabis extracts (shatter, live resin, and honey oil), cannabis oil, milled cannabis, vaporizers, capsules, and pharmaceuticals.

Most importantly, Hexo Corp is an exclusive partner with The Hydropothecary Corporation (THCX) for the Canadian market.

This gives them a great competitive advantage over other companies in the sector due to their ability to produce higher-quality products at lower costs.

Let Us Look At Its Financials

Market Cap: $77 M

Market Cap means what the total value of outstanding shares is calculated to be worth. Currently, Hexo Corp has about $77 million of stock for sale. If every single share was purchased at once, it would cost about $218.24 million USD to buy the Company.

P/E Ratio: (1.9)

P/E Ratio is how much the market values one share of a company by dividing its current share price by its per-share earnings. Negative 1.9 implies that the market is willing to pay more for a share in profits than they are currently receiving.

ROE: (-0.0697)%

Return on Equity shows how much net income a company is able to generate from its overall Equity. Higher rates indicate that the Company has successfully utilized shareholders' funds, thus maximizing profitability for their investors.

A negative sign indicates that the Company is not generating enough profit from shareholders' funds and that further investments in the Company would be required to see a higher rate of return.

Debt/Equity: 0.79

Indicates whether a company has more debt or Equity. This can determine how risky the stock may be. 0.79 means it does not have much debt.

CMP: $0.17

The price at which a company's share price is currently trading. In this case, Hexo Corp is trading at a price of $0.17 USD per share.

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2. VirnetX Holding Corp (NYSE: VHC)

Another company that has been generating a tremendous amount of investor interest lately is VirnetX Holding Corp . If you have not heard about this stock until now, don't feel bad. It was virtually unknown to most people a few years back, but it has recently risen from obscurity and become a market leader in the cybersecurity industry.

VirnetX Holding Corp is a Delaware Corporation that applies secure communications technology to various industries, including virtual private networks, Internet security, and audio/video transmitting.

The Company holds patents in the US and other countries for its technology related to creating safe facsimile transmission solutions.

VirnetX has been involved in a number of lawsuits against major tech companies such as Apple and Microsoft. Just recently, a judge ruled in VirnetX's favor and ordered Apple to pay $368,500 per day until the infringement ceases.

In an earlier ruling, a judge also found that Microsoft had violated two of VirnetX Holding Corp's patents for secure communications links to hand over $200 million in damages.

As seen in the rulings, these lawsuits are extremely successful for VirnetX. Suppose you're wondering why large corporations would pay damages to VirnetX instead of just licensing their patents.

In that case, it's because most companies can't produce products with secure communication links without infringing on the patent. This is why it is expected that they will continue to triple-digit growth for the foreseeable future.

Let Us Look At Its Financials

Market Cap: $85 M

Market Cap means what the total value of outstanding shares is calculated to be worth. Currently, VirnetX has about $85 million of stock for sale. If every single share was purchased at once, it would cost about $102 million USD to buy the Company.

P/E Ratio: (-3.92)

P/E Ratio is how much the market values one share of a company by dividing its current share price by its per-share earnings. A negative sign implies that the market is willing to pay more for a share in profits than they are currently receiving.

ROE: (-9.93%)

Return on Equity shows how much net income a company is able to generate from its overall Equity. Higher rates indicate that the Company has been successful in utilizing shareholders' funds, thus maximizing profitability for their investors.

A negative sign indicates that the Company is not generating enough profit from shareholders' funds and that further investments in the Company would be required to see a higher rate of return.

Debt/Equity: 0.03

Indicates whether a company has more debt or Equity. 0.03 means it does not have much debt.

CMP: $2

The price at which a company's share price is currently trading. In this case, with VirnetX Holding Corp, we see that shares are trading for about $2 per share on average.

With the increasing market demand for cybersecurity and patent licensing, VirnetX's stock price can be expected to rise substantially over the next few years.

3. Edgio, Inc. (EGIO) (Formerly Limelight Networks)

This Company is an innovator in the content delivery network industry, which means that it helps websites load faster for users by strategically placing servers around the world.

Edgio, Inc. distributes its shared hosting services to over half of the Fortune 1000 companies and has more than 1,000 global customers, including eBay, Ford Motors, HighBeam Research, HotJobs, Monster.com, and The New York Times.

The growth opportunities for Limelight Networks are immense as streaming media becomes increasingly popular around the world.

With real-time data delivery growing rapidly each year, Limelight Networks has positioned itself to become an industry leader in this technology area by acquiring two other companies, Flash Networks and Alpha Networks, which are also leaders in the streaming media delivery industry.

With a backlog of deals worth $631 million already on its books, Limelight Networks has already started to see revenues growing at triple-digit rates year over year for 6 years running.

As customers begin to adopt streaming media technologies at an accelerated rate throughout the world, it is expected that Edgio, Inc.'s lead in the content delivery network industry will allow its revenues and profits to continue to grow at high rates for many years.

Let Us Understand Its Financials

Market Cap: $283.629M

Market Cap means what the total value of outstanding shares is calculated to be worth. Currently, Edgio, Inc. has around $283.629 million of stock for sale. If every single share was purchased at once, it would cost about 352.42 million USD to buy the Company.

P/E Ratio: (-3.4)

P/E Ratio is how much the market values one share of a company by dividing its current share price by its per-share earnings. The negative sign indicates that the company is not making a profit or losing money.

ROE: (-38.31%)

Return on Equity shows how much net income a company is able to generate from its overall Equity. Higher rates indicate that the Company has been successful in utilizing shareholders' funds, thus maximizing profitability for their investors.

A negative 36.29% indicates that the Company is not generating enough profit from shareholders' funds and that further investments in the Company would be required to see a higher rate of return.

Debt/Equity: 46.50

Indicates whether a company has more debt or Equity. 46.50 means it does have a lot of debt, and the company is borrowing more capital from the market to fund its operations.

CMP: $1.28

The price at which a company's share price is currently trading. In this case, with Limelight Networks, we see that shares are trading for about $1.2 per share on average.

Edgio, Inc. is not currently profitable but with the increasing market demand for streaming media technologies, Limelight Networks' stock price can be expected to rise substantially over the next few years.

As Edgio, Inc. is still not fundamentally sound, investors should wait before making an investment until its financials are in better shape.

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4. Axos Financial (NYSE: AX)

It is a bank holding company and the parent company of Axos Bank, formerly known as "Bancorp of California." In July 2017, the Company completed its acquisition of GE Capital Bank, which it renamed Axos Bank.

With that acquisition, Axos Financial became a federally regulated bank with access to the Federal Reserve's Discount Window and a Federal Deposit Insurance Corporation (FDIC) member.

It is a diversified financial services holding company whose primary business is providing online savings products through its wholly-owned subsidiary, Axos Bank.

The Company provides trust services, insurance, and lending products through its other subsidiaries. The Company's principal executive office is located in Berwyn, Pennsylvania.

It has potential because of its acquisitions of GE Capital Bank and other banks, which will allow it to increase its railroads in the banking industry, as well as to create a relationship with Axos Bank that is similar to that of PayPal's relationship with eBay.

Financials

Market Cap: $2.15B

The Company is still in the acquisition phase of its growth, accumulating over $2.15 billion in assets since 2014.

P/E Ratio: 8.85

Positive 8.85 means that the market is willing to pay more for a share in profits than they are currently receiving.

ROE: 15.12%

Return on Equity shows how much net income a company is able to generate from its overall Equity. Higher rates indicate that the Company has successfully utilized shareholders' funds, thus maximizing profitability for their investors.

Debt/Equity: 0.37

Indicates whether a company has more debt or Equity. 0.37 means it does not have much debt.

CMP: $35.80

The price at which a company's share price is currently trading. In this case, with Axos Financials, we see that shares are trading for about $35 per share on average.

What Financial Factors Need To Be Considered Before Choosing A Stock?

Fundamental Analysis tells us how much a stock is worth, but it does not tell us whether or not the Company will realize that value. Don't forget to do your own research from various sources and from all angles before investing in any one particular company! The following are some fundamental factors:

Industry

Different industries have different prospects in the market. One should choose one that is currently profitable or will soon be. If you do not know anything about an industry, research it before investing in it. It is unwise to jump into something when you are uncertain of what you are getting yourself involved in with your money.

Revenue

A company that is profitable, or will soon be, is likely to have a high revenue multiple. The higher the revenue multiple, the more you are being paid for owning a share of stock in it.

Debt/Equity ratio

The debt-to-equity ratio shows how much debt a company has compared to its Equity. A company with no debt is less risky than one with a lot of debt because they have no outside force financially straining them if things go south.

Market cap

Market capitalization shows the value of a company in terms of how much they are currently valued on the market. The higher the market cap, the larger the Company is valued at.

P/E Ratio

The price-to-earnings ratio shows how much you are paying for every $1 in earnings that a company has before taxes, interest, depreciation, and amortization. The higher this number is, the more expensive it is to own one share of stock in that specific Company.

This is not always a bad thing, as sometimes high P/E ratios indicate what the market thinks of the Company's potential, which means you as an investor may be able to make more money from it in the future if everything goes according to plan for said Company.

ROE

Return on Equity shows how much net income a company is able to generate from its overall Equity. Higher rates indicate that the Company has successfully utilized shareholders' funds, thus maximizing profitability for their investors.

Book Value

A company's book value is the total assets minus total liabilities. If its current price is lower than its current book value, then that means it's selling for less than what it's worth. This can be a little risky as such stock may actually be "worth" more than the market perceives it to be, and you could potentially lose money.

Share Price

The share price is the price of one unit of a company's stock. If it is higher than what it has been historically, investors expect something good to happen.

When this happens, you may want to check up on the Company and see if anything positive has recently happened for them, such as new management or products that are doing well in the market.

Dividend Yield

The dividend yield is the amount of money paid out by a company to its shareholders in dividends for each stock owned. If this number is higher than what other stocks in the market offer, there's a good chance you'll be making more money from it. You won't make much if any, money from the stock price increase, but you'll get a good steady income.

Insider purchases

If the management of a company is buying up their own shares in an open market, that is usually seen as a positive thing because this shows they believe in the stock and want to see its price go up.

However, you need to be careful as sometimes this may be a trick where they are attempting to increase their own wealth using money that isn't theirs.

What Are Some Technical Indicators To Be Considered Before Buying A Stock?

Technical Analysis tells you the price of a stock in the past and what it has done historically, but it doesn't tell you why or what will happen in the future. While there are many technical analysis indicators, we'll only go over 4 indicators.

Relative Strength Index

The relative strength index is a momentum indicator that helps determine if a stock's price movement is overbought or oversold. If the RSI is below 30, then it means the stock is looking undervalued, and you may want to consider buying it as this could be an opportunity for you to make more money from owning it.

On the other hand, if the RSI is above 70, then it means that the stock's price could be overvalued, and you may want to sell as soon as you can to make sure you don't lose money from its inevitable decline.

Moving Averages

The moving average shows what a stock's average price has been for the last X number of time periods. If it is currently higher than its moving average, then that means the stock's price has gone up over the last number of sessions.

It can be used as a signal to determine whether or not you want to buy or sell a certain stock. For example, if its 50-day moving average is going up along with the stock, you may want to consider buying it, as that could indicate its potential for growth.

However, if its 50-day moving average is going down along with the stock price, then you may want to think twice about making an investment, as this indicates that traders are selling their shares and causing the price to fall.

Bollinger Bands

Bollinger bands consist of a centerline and two parallel lines that surround them. The centerline represents the high-low price range, while the two outer lines represent standard deviations from it.

If a stock's price is higher than usual, then its Bollinger band will widen as traders buy more shares. However, if it goes lower than usual, the band will narrow as traders sell their shares.

MACD

The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages of prices. It's usually represented by three lines: a fast line, a slow line, and a signal line.

The fast and slow lines represent the difference between short and long-term moving averages, while the signal line represents the difference between the two moving averages. This indicator can be used to help predict the price movement of a stock.

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Now Let Us Learn Some Basics About Stock.

What Are Stocks?

A stock is a unit of ownership in a public company. You can either buy individual stocks or you can purchase shares in an index like the S&P 500, which will spread your risk among different sectors, industries, and market factors.

When you own stocks, you become part-owner of the Company; therefore, it makes sense that they are riskier investments than bonds or cash. In the long term, stocks have been known to make people wealthy if they can ride out their ups and downs over time.

How Do You Buy A Stock?

In most cases, it's as simple as going to a brokerage company like E*TRADE or Ameritrade and opening an account that will hold your stocks.

Once your account is verified, and you've chosen how you want to pay for it (by making a cash deposit or using the money in your bank account), you can start buying stocks online by paying for them with money from your own checking or savings account.

How Do You Make Money On Stocks?

You make money on stocks when the price goes up. For example, if you buy a stock at $10/share and then sell it for $20/share, you've gotten a 100% return on your initial investment.

Obviously, this doesn't always happen so quickly, but over time stocks have the potential to grow in value many times over - especially if they pay quarterly dividends or have a track record of increasing their value every year.

What Is The Right Time To Buy A Stock?

The right time to buy a stock is when you believe the price will increase. Just like any other product, stock prices are determined by supply and demand.

If it's a hot item that everyone wants to buy, then the price will be higher than something that nobody cares about. After all, why would someone pay $40 for a DVD player when they can buy one used for $15?

What Is The Right Time To Sell A Stock?

The right time to sell a stock is when there's little chance of it going up. For example, if you bought a stock at $10 and it has now gone up to $20/share, then there's no reason to sell just yet because it will probably go up a bit more before stabilizing.

On the other hand, if you bought a stock at $40/share and it has now dropped to $30/share, you have two choices: hold on and hope it goes back up or cut your losses and sell while the price is still somewhat high.

What Is A Stock Market?

The stock market is an exchange where people buy and sell shares in public companies. The goal is to make money from the difference between the price you paid for a security and the price at which you sold it when you want to exit your investment.

Just like going out to dinner, if you paid $25 for a meal and then you can go next door to sell it for $35, you've made money. The only difference is that the restaurant doesn't buy back their food, whereas stock exchanges will let anyone turn their stocks into cash whenever they want.

How Does The Stock Market Work?

A company has an initial public offering (IPO) which means they are selling its shares to the public for the first time. They do this by choosing a stock exchange on which they want their shares to be traded, making sure there are enough buyers, and then pricing it so that investors get an "attractive" return.

Demand is based on how well-liked or trusted the Company is, how much demand there is for its product, what the economic outlook looks like, and whether or not the IPO pricing was cheap enough to attract buyers.

Once they have a buyer for all of their shares, they are officially public and traded on the stock exchange where it's being sold.

Conclusion

It doesn't matter if you're a seasoned investor or somebody who's just getting started; there are some stocks that have the potential for returns of more than 100x your initial investment.

What does this mean? In plain English, it means if you buy a stock at $10/share and then sell it for $100/share, you've made a cool $90 profit.

But before you invest in any stock, you have to do your research since, without due diligence, there's no telling how much money you might lose. You always have to take a chance when buying stocks, so if you don't feel comfortable with the risks, then you probably shouldn't be investing.