Got $1,000? Top 2 Growth Stocks to Double Your Money

Some investors believe $1,000 is too modest to make large returns. That's not always true. A $1,000 investment in Home Depot's 1981 IPO is worth almost $18 million today, excluding dividends. That doesn't mean investors should expect enormous returns, but it shows that a tiny investment can yield massive rewards over time. Some equities have struggled to thrive despite record indexes.

Some of these stocks have promised to return to fundamental strengths, which should pique investor attention. While investors may need patience, Sea Limited (NYSE: SE) and Block (NYSE: SQ) shares could generate triple-digit returns from current levels.

Sea Limited Many investors sold Sea Limited stock after the 2022 bear market. Due to strategic and regulatory errors, Sea lost over 90% of its value after climbing to $372 per share in 2021.

However, investors now feel it can recover most of its value. For instance, entering European and Latin American areas where it could not develop a moat cost it investment. With the exception of Brazil, these moves resulted in partial or complete withdrawal and significant losses. It invests more in logistics in Southeast Asia to boost its competitiveness.

In 2022, its Garena gaming company lost the ability to sell Free Fire in India, a market of over 1.4 billion people. The Indian Ministry of Home Affairs cited data privacy concerns for this decision. Garena teamed with an India-based hosting and storage provider to ease those worries and believes it may soon be approved to bring Free Fire back to India, reviving this long-suffering subsidiary.

Sea Limited's fastest growth comes from Sea Money, its fintech business. If the corporation can fix the other two segments, the stock may soar. Sea Limited's 2023 revenue of $13 billion jumped 5% due to Garena's problems. Still, it posted its first annual shareholder profit of $151 million, reducing the requirement for outside funding.

Analysts forecast profits to reach 116% this year and 159% in 2025 due to growth expectations. After the latest results announcement, analyst predictions included four target price rises and two upgrades. The stock price could quadruple due to increased profitability.

A projected P/E ratio of 32, down from above 60 last spring, reduces the risk of investing now, and a $60 share price makes it affordable for modest investors. Sea Limited shares will certainly rise due to the retail moat broadening and Free Fire's expected return to India.

Block, like Sea Limited, experienced significant gains in the last bull market, but they mostly faded due to lack of attention. Investors initially liked its Square ecosystem and Cash App success. Block's CEO Jack Dorsey's decision to focus on Bitcoin and add non-core operations like a music streaming service raised investor concerns.

Dorsey is addressing this, thankfully. In the fourth-quarter 2023 earnings conference, he said upgrading Square's platform was his "No. 1 priority" and listed his top four worries. Dorsey wants Cash App to be a major bank for people earning under $150,000. He wants Cash App to provide more financial functions, support families, and create a "social bank" for the future generation.

This is good news for investors since these two platforms account for over 99% of Block's gross revenues. With Bitcoin hitting historic highs, Block may see increased trade.

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