5 Multibagger Stocks to Buy Right Now (Massive Upside Potential)

Five stocks, all of them down, all of them still growing at insane rates. I'm going to show you exactly why they could be an opportunity right now and exactly the price I would pay based on my own stock analyzer assumptions. First stock, Mercado Libre, ticker MELI. Think of Mercado Libre as the Amazon of Latin America except it's also building the leading fintech and bank of Latin America at the same time. The stock has fallen more than 35% from its high. So, a lot of people assume something is broken. But, look at what the business actually did last quarter. Revenue growth of 49% year-over-year. The shopping side grew 47%. The payment side grew 51% and they sold 56% more items in Brazil alone. Those are not the numbers of a broken company. The reason the stock fell is that profit margins did get thinner and management says that was on purpose. Instead of squeezing out pennies to please Wall Street this quarter, management is pouring money into free shipping, warehouses, credit cards, and marketing. Their lending business alone just grew 87%. The point supporters make is simple. This isn't a tired old store trying to save a little money. It's still being built in a part of the world where online shopping, payments, and banking are years behind the United States. Second stock, SoFi. Guys, SoFi is trying to be the one-stop shop for your whole financial life. Loans, banking, investing, even cryptocurrency, which you know I think is actually a scam, all in one app. And the growth is hard to ignore. Last quarter, revenue grew 41% from a year ago. Their measure of profit grew 62%. Members grew 35% to 14.7 million and the loans they handed out grew 68%. The stock sold off anyhow, mostly because management just repeated its old forecast instead of raising it and hopes for interest rate cuts have now faded. But, here's the signal that a lot of people noticed. The CEO, Anthony Noto, just bought $2 million of stock with his own personal money right out in the open market. When the person running the company buys that much, you don't just take his word for it, but you do pay attention. Now guys, on the first two companies, we're not going to analyze them, but they're just stocks that have been very popular and down a lot even though the fundamentals are getting better. We always say that's a great place to look for value. Fundamentals getting better, big drop in stock price. Now, stock number three. Let's start putting these to test. Uber. You know it for rides and for food delivery, but the real story is that Uber finally makes serious money. Last quarter, people took 3.6 billion trips, up 20% from a year ago. The total dollars flowing through the app, what they call gross bookings, grew about 21% to $53.7 billion. And the profit is growing even faster than sales. Operating income jumped 57%. One number the CEO's proud of, Uber One, their membership club, just hit 50 million members and those members now drive half of all the money spent on the platform. Two things scared people this quarter though. Sales on paper only grew 14%, slower than bookings because of some accounting changes in how Uber accounts their revenue. And [snorts] the bottom line profit looked small because of a paper loss in some investments that Uber owns, not the actual business. But the engine underneath is humming. More riders, more members, fast-growing profit, and strong cash generation. So, let's run it through our Everything Money process right now. Let's pull it up in our software. The Uber Ubers, $72 a share, but the real price is the market cap, $151 billion with an enterprise value of 178. This $28 billion difference between market cap and enterprise value is essentially the debt. Now, here's what I love, guys. They generated almost $10 billion in the last year in free cash flow. So, in less than 3 years, they could take their cash flow and pay off that remainder of debt and basically be a a neutral business in terms of cash versus debt. That is awesome. Now, they're selling for 15 times free cash flow for a business that everybody uses every single day that they love. It's a verb. Gross profit of 41%. Another thing I like here, profit margin in the last 5 years was 6.5%. Last year was 15.9. They started focusing on their profit and free cash flow. And by the way, their free cash flow is greater than their profit. That's a metric that a lot of people don't realize is a good metric. If you're new, free cash flow is the lifeblood of the business. It's rare to find businesses where free cash flow is greater than net income, but we have it right here. And returns on capital are getting better. They were negative for the last 5 years, 8.36% last year. Not a great number, but still growing, which is great. So, let's go to the eight pillars. Four checks, four X's. The four X's are 5-year PE, 5-year price to free cash flow. But remember, their PE their earnings are up a lot in the last 5 years, and so is their cash flow. So, I'm not I'm just ignoring those and looking at the present numbers. Next, return on capital. Again, 5-year numbers negative. Shares outstanding up 5.8%. Now, I don't like it when companies dilute their shareholders. But let's go look at how they've actually done that. We go to the income statement, and we go to the bottom. And guys, yeah, their shares are up, but it's actually down from 2024. Let's look at their quarterly numbers. We down here right here at the bottom. Since 2024, it's been declining. So, yes, it's up now, but it has been declining. Now, with that said, it's only good if a company's buying back cheap shares. 15 times free cash flow seems like it's probably pretty cheap, in my opinion. Now guys I want to remind you, I threw a lot of stuff at you. If it feels overwhelming, you're not alone. I'm here to simplify all this for you. You've got to remember, everybody in the history of the world who's successful investing was overwhelmed at some point. Nobody was just amazing at it. So, I'm here to make that possible for you, if you're committed to learning. I have an absolutely free PDF that will describe all of these key metrics for you. It'll break it down, explain them to you, what they mean, and how to calculate them. All free of charge. Click the link below, and you'll be able to download the PDF in a matter of minutes. And guys, in a few minutes from here, I'm going to tell you the price that I'm willing to pay based on my own assumptions. But first, let's look and see what analysts think about the company. Well, here's interesting. Not as good as I thought. 313 per share, growing and then declining and getting to 504 a share. So, overall, in the next 7 years, it's up. But analysts, in their busiest years of covering the company, see big growth and then declining. Is it part of the whole, "Hey, we have driverless cars, is that going to ruin Uber's business?" That's a good question to ask. It's a very logical question to ask. But what's interesting is, in terms of revenue, 60 billion growing all the way to 104 billion dollars. But the growth is not huge. It's starting to decline here, according to analysts. So, guys, we have some numbers. We have some story. We do a very quick stock analyzer to figure it out, say, "Hey, should we spend more time on this?" So, here are my assumptions about the future, the next 10 years. Revenue growth, I did 4, 7, and 10%. Next, profit margin and free cash flow, I made them the same. I I 18, 22, and 26. So, 18 is what they did last year, but they keep getting better. So, I'm going to assume they get better in over the next 10 years. Next, what PE and what price to free cash flow would I assign to this business 10 years from now? Well, guys, the market average over long periods of time is 15 or 16, but you need to pay a premium for good companies. Yes, returns on capital aren't great, but I believe this is a moat business. It has very high barriers to entry. I like this business. So, I'm giving 18, 22, and 26. And then finally, my 9% no margin of safety return. What is the company worth? The intrinsic value. Remember, I'm not here to buy a company for what I think it's worth. I want a discount, but it's a great starting off point. So, I hit the analyze button. The stock's currently at $73 a share. I have a low price of 85, a high price of 255, middle price of 150. That means that based on my middle assumptions, the discounted cash flow return is over 19% per year. Now, for me, that doesn't mean I'm going to go out and buy it automatically. It means Paul, go spend a little bit more time. Go in the community, talk to people, use the AI in there to sit there and ask questions that you need to ask about the company. What are they doing to combat driverless cars? Who are they partnering with to be able to do that for themselves? Now guys, a reminder for everybody who watches these videos, do not take our titles literally. We use the title cuz it's a YouTube game to get you interested in the video and then we teach the deeper lesson within it. From the time you saw that the video was posted to the time you clicked on it, the title's probably changed already several times. We're here to teach a process. Stock number four, Netflix. This one I would willing to bet the vast majority of people watching already pay for. Last quarter, revenue grew significantly and profit grew even faster with their operating margin climbing to about 32%. People are watching more than ever. Their main engagement score just hit an all-time high. And here's the part the bulls love. Even with nearly a billion viewers, Netflix says it still has only about 5% of all TV watching around the world, and it reaches under half the homes it could. That's a long runway left. Their newer ad-supported plan is growing faster with ad sales on track to roughly double this year. One fair warning, part of this quarter's big earnings jump came from a one-time payment tied to a deal that fell through regarding WBD, Warner Brothers Digital and Paramount. So, it isn't all repeatable. It's a very important distinction to make. And margins dip a little next quarter because of when new shows launch. But, the long-term story, more viewers, higher prices, faster growing ad business, still intact. So, let's see if our process agrees. So, guys, it's a $250 billion market cap business with $366 billion enterprise value. That's $16 billion difference. Is their debt? They did $11.9 billion in free cash flow in the last year. We're going to go check and see if that included that $2 billion from WBD. Now, an issue that Netflix has had for a long time, but it's much closer, their free cash flow net income, their free cash flow was lower. It used to be 10 to 1, guys. Now, it's much closer. So, they're getting there. And they're selling for 30 times free cash flow right now right now and 26 times earnings. Guys, a couple things I love. Look at the profit margin. 10 years is 17%, 5 years is 20, 1 year is 28%, and their gross margin is about 50%. A lot of growth here. High returns on capital, 16% for the last 5 years, 19.7 last year. A lot of good things here. Our community members have it as a hold right now. Let's go to the eight pillars here. This is one of those we're just waiting for the price. The The X's are their their 5-year ratios. Now, let's go check and see their financials to see when they got their money for the $2 billion. Other income expenses, boom, right here. 2.59 billion. So, you got to fact you got to subtract that from here. That's a one-time gain. This is something very important people understand. I When I see big fluctuations in profit or a big jump or a big drop, I always have to look at what the reason is. Is it a one-time thing or is it a repeating thing? This is a one-time thing. So, do not factor this in. You've got to subtract the $2 billion from your net income. So, let's look at the analyst estimates here to see what they think. Guys, about doubling their profit, 366 to 720 over the next 7 years. That's about 10% per year. Rule of 72. Okay? Revenue growth, 52 to 96 over the next 7 years. So, a little bit less than that. About nine About eight or nine percent a year. So, let's go run our stock analyzer tool. Now, maybe I got a little aggressive. I don't know exactly, but I did a 10-year analysis. I did six, eight, and 10% revenue growth. So, it's right in line with the analyst estimates. Profit margin, I did 20, 23, and 26. Now, here's the question guys. Is this accurate? I mean, they already did 28% of profit margin last year. They did 25% of free cash flow. Am I being too conservative here? Well, first off, I'm going to make these exactly the same. I'm going to keep these at exactly 20, 23, and 26. But, I do understand if somebody says, "No, Paul, it should be higher." Logically, it should be higher there. And I think that the ultra-competitive nature of streaming, I feel like the heyday of it is probably a little bit past as it feels that way cuz I don't hear about it all the lot of And that was always my biggest concern about these streaming services is everybody's coming up with them. But now we're not seeing as many. I think there'll be consolidation. We see that with the Paramount deal and Warner Brothers Digital, those kind of things. Next, PE 2023 and 2026. And I have to put in the 9% desired return. Now, I want to explain what I just had there. I had 15% for me. Guys, I'm not saying that's the right number. Personal finance is more personal than finance. For me, based on all the investments I have and the money I need to live in my life, I don't need to take on any company unless I'm going to make a lot of money on it. I picked 15% for that reason. When I wasn't that way, I picked 12%. Do I think it needs to be higher than the market return? Absolutely. But the number base is based on what you believe you need and it's also based on your knowledge of the situation. Now guys, real quick, you just watched me run Uber and Netflix through our process, the eight pillars, the key metrics, stock analyzer with the valuation. You saw exactly how we figure out how to make good assumptions on the future with our stock analyzer tool. Guys, that whole process lives inside everythingmoney.com. You type in any stock into the analyzer, doesn't matter what it is, and it shows you what your future return could be based on your own assumptions. No spreadsheets that you have to handle, no math you need to handle, no hoping some random person internet got it right. It is right there for you doing it all behind the scenes. You get the exact same process that I use on any stock you want, anytime you want it. But here's what I really want to tell you about. The stock analyzer tool is one thing, but what's inside the community is something completely different and far more valuable. Every single week, we're in there going through stocks together. Members are posting their analysis, asking questions, and getting real answers, not from some random comment section, but from people who are actually learning this process and doing the work. We talk through earnings. We talk through valuations. We debate whether stock passes or fails. It's a place where everything you're learning on this channel actually gets applied. And look, most people watch a video like this, they get excited, and then they either act too quickly or they do nothing. Because it feels overwhelming. Where do I start? What do I buy first? What price do I pay? I don't want to miss out on this one. I have FOMO. That's exactly what the community is for. You're not figuring this out alone anymore. You have a grounded group of people who are going to help you through your emotional ups and downs when it comes to money, cuz trust me, we all have those times. So, if you've been watching this channel for a while and you haven't tried it yet, this is me telling you, go try it. How much is it worth to you? I guarantee it's worth over a dollar a day to you, and you can try it for 7 days for $7. Jump in the community, introduce yourself, and see what it feels like to actually have a process. The link is in the description below. I will see you there. So, I hit the analyze button. Boom. I got a low price of 50, high price of 107, middle price of 74. Guys, for me it feels a little rich. It's a 7.8% return, and I made some assumptions that might be a little higher than I'd like to, but that's exactly the point here. And now I know, just be a little patient, and I have it on my watch list here at $55 per share. Doesn't mean I'm buying it there. It means the stock that my our software will message me, and I can go take another look at it and see what has changed. Fifth and final stock, Meta, the company behind Facebook, Instagram, and WhatsApp. Here's a number that's even hard to picture. Three and a half billion people use Meta's apps every single day. Guys, that's almost half the planet. And the business is booming. Last quarter, revenue grew 33% from a year ago to $56 billion. The number of ads they showed grew 19%, and the price per ad grew 12%. So, why did the stock drop? Because Meta said it's going to spend $10 billion more than planned, mostly on artificial intelligence, and that scared people who worry that the CEO, Mark Zuckerberg, is spending too much before it pays off. But, the bull case the payoff is already showing up. Meta is using AI to make its ad smarter, better at picking what you see and turning that into sales for businesses. Cuz, guys, as a business owner, if I know I'm going to get a good return on the money invested in my ads for on Instagram and Facebook, guess what I'm going to do? I'm going to buy more ads. And one famous investor, Bill Ackman, recently bought a big chunk of the stock. When investors like that show up, you pay attention. So, let's run the numbers. Guys, I want to remind everybody that Meta went from $340 a share to $88 a share in 2022. Everybody was calling for Mark Zuckerberg's head. They said people won't use Meta anymore. It was It was a dead company, and I was like, is it though? I got lucky. I was buying on the way down. I got lucky and bought it exactly at $88 per share. But, guys, the mistake I made was I sold too soon. So, let's pull up Meta in our stock analyzer tool in our software. The price of Meta is at $1.53 trillion. The enterprise value is 1.6. That's a $70 billion essentially the debt, and they generated $48 billion last year in free cash flow. Now, to show you how much money they're spending on CapEx, their net income was $71 billion, yet their free cash flow was 48. That's how much money they're spending out there. High returns on capital. Profit margin, I'm actually surprised. Pretty similar. Pretty Pretty even keel. 32% a year for the last 10 years, 31 and 1/2% for the last five, 32.8 for the last one year. But, look at those gross margin 82%. That means every dollar they bring in an extra revenue, 82 cents of it goes to the bottom line before overhead and taxes. And look at this growth rate in revenue. 27% a year for the last 10, 17.9 for the last five, 22% for the last three. A lot of growth and not a lot of acquisitions based on their market cap. So, it's all internal growth. Incredible. Small dividend, but it eats up a big chunk of their cash flow. Guys, all in all, just great company. Community members have it as a buy right now. Let's go to our eight pillars here. This is what we love to see. Everything's a check except for the PE, five-year PE, and five-year price to free cash flow. Remember, that doesn't mean it's bad and you should avoid the company. It just means that the growth has to justify that valuation. If two companies are the same, but one's going to grow 20% a year, one's going to grow 5% a year, the 20% per year company deserves a higher premium. That's what we're asking here. Does the growth potential for Facebook, for Meta, justify the premium? So, let's go to analyst estimates. Analysts think that the earnings per share growth will be 35, 5, 15, 20, 14, and 2 and 1/2%. Growing from $33 a share to 58 in the next four or five years. And revenue growth, look at this. All I mean, this is incredible. 27, 19, 16, 12 and 1/2, 13, 14 and 1/2, three and nine. Over double in the next, what is that, seven years? Over double. So, what are we doing here, guys? We have to now take this information and do our stock analyzer tool. Now, remember, guys, this tool is what we use to figure out the price that I want to pay for the company based on my own assumptions. So, here are my assumptions for the next 10 years. But, I'm not going to lie to you guys. I'm going to tailor back just a little bit. I'm going to do 7, 10, and and 14% revenue growth in the next 10 years. Profit margin, I did 29, 31, and 33. And free cash flow, I did 28, 30, and 32. Free cash flow is getting lower because they're investing so much in AI. Hopefully, in the next 10 years that it stabilize, the profit the money has come in to pay for itself and justify it. So, we're hoping for that here. Now, what PE and price to free cash flow 10 years from now? I did 20, 24, and 28. And my 9% no margin of safety return, the stock's essentially at $600 a share right now. Hit the analyze button. I have a low price of 580 to 600, high price of 1480 to 1500, middle price of 900 to 930, which based on my middle assumptions is about a 14% return. I hear a great I heard a great quote from Joel Greenblatt the other day. He said, "My largest positions aren't the ones that I think have the highest potential. They're the ones I think I'm not going to lose money on." I'm not saying that about this. But, I look at that a little bit differently now going, "Hey, even my low assumptions occurring, which I don't think is I I think it'd be hard for for Meta to do that, I still have an 8% return on there. That's not bad." So, for me, I am taking a deeper look and even writing puts on this company, which I have done, which allows me to buy the stock at a lower price in the future. Now, guys, if you found these five stocks exciting, here's the video you're going to want to watch next. I'm going to show you every single move I'm personally making in my own portfolio right now. Every stock that's on my watch list that I want to buy. Click right here to watch. Thank you for your time.