3 Potential Tenbagger Stocks You Shouldn’t Miss

Despite the title, let’s be clear: Not everything in your portfolio can (or will) deliver awesome returns overnight. In general, a more balanced approach works in the long term. 

However, potential “tenbaggers” — stocks that appreciate 10 times their initial purchase price — are out there. WallStreetZen’s Potential Tenbagger screener can help you find them. 

Below, we’ve done some preliminary research on three such stocks.

These aren’t random selections. We cross-referenced the picks with our Zen Ratings system, which uses 115 factors to identify which stocks display the most promising signs of future growth. The stocks are then graded from A through F, just like school grades. A-rated stocks produced an average annual return of +32.52% since 2003.

Here are three stocks that have tenbagger potential and have a Zen Rating of A or B:

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1. Digi International Inc (NASDAQ: DGII)

A large player in the Internet of Things (IoT) space, DGII is already looking to have a good year, and has a Zen Rating of A, putting it among the top 5% of stocks we cover. Specifically, reviewing its component grades, it has a B in Value, Growth, Financials, and Artificial Intelligence. This indicates a stock that exhibits signs of future growth and is currently undervalued.

While it is uncertain how the IoT will be used in the future or which products will take off, its continued growth and health are likely, and DGII will almost certainly branch out into other areas of everyday life.

2. BioMarin Pharmaceutical Inc (NASDAQ: BMRN)

Any Biotech stock is a major breakthrough away from that coveted tenbagger status, and while BioMarin does not have such a breakthrough to our knowledge, it still presents an undervalued opportunity to the right investor who is willing to consider it.

We’ve recently covered BioMarin Pharmaceutical as a great opportunity to buy the dip. It’s down -35.49% over the course of the year, and despite this, our system indicates it holds excellent value for the price (with a Component Grade of A for Value), and it has been regularly cited as a growth candidate by analysts and publications. Revenue exceeded expectations in Q2, and the company's cash flow is improving.

3. GreenBrier Companies Inc (NYSE: GBX)

Rail has dealt with some tough tracks as an industry in recent years, but that does not mean every railroad stock isn’t worth considering. Manufacturing cars, equipment, parts, and more alongside shipping-related services, GBX has steadily been on track for investors, and perhaps underconsidered.

The key point about GBX is that it is currently considered undervalued, with a Value Component Grade of A by our own Zen Ratings system. Estimates are rising, GBX is outperforming industry expectations, and it offers a reasonable dividend yield. 

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Note that while all of the above stocks were highly rated by our system, chasing larger gains can lead to greater risk. Therefore, be sure to conduct thorough due diligence before investing in any stock.

And tenbaggers are stocks to watch closely, and you’ll want the right tool for that. WallStreenZen Premium is that tool. It provides you with all the fundamental information you may need, an unlimited watchlist, and premium stock idea pages.

Looking for a perhaps safer, more guided approach to building your portfolio? Then Zen Investor is what you’re looking for. With it, you’ll get regular stock picks, market commentary, and updates to a model portfolio hand-selected by our own Steve Reitmeister, who has more than 40 years of investing experience and has dealt with his fair share of turbulent markets.

What to Do Next?

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