Megatrends exist across many thematic areas of the stock market. Identifying these trends usually involves analyzing key factors such as technological breakthroughs, social change, urbanization, climate change, and global wealth shifts and capitalizing on them. The dawn of artificial intelligence is an important thematic focus right now. So is a shift away from fossil fuels and toward renewable energy sources.
Demographic shifts continue to play out, as larger economies see their populations age. That shift has clear implications for healthcare, costs, and the necessity for emergent technologies that address issues.
A list of megatrend stocks could be very long, but this list attempts to identify those with 10X potential. Let’s take a look at stocks which fit that criterion.
| SYBX | Synlogic | $0.53 |
| SLDP | Solid Power | $2.27 |
| AI | C3.ai | $17.82 |
Synlogic (SYBX)
Synlogic (NASDAQ:SYBX) is undoubtedly a potential 10X investment, judging by its numbers alone. Shares of SYBX stock trade at only 53 cents per share, while its target stock price is $7.17. So, it’s clear that Synlogic has the potential to provide investors with high returns within the next 12-18 months based on analyst target prices alone.
Regarding megatrends, Synlogic touches on the rapid advancement of technology to treat rare diseases. The company utilizes synthetic biology to create medicine-programmed genes and molecules that address specific conditions. For example, the company’s synthetic biotics are probiotics programmed to deliver a specific therapeutic drug targeted to a particular disease.
If you’ve ever drank diet soda, chances are you’ve seen the warning about phenylketonuria. They are people who cannot metabolize the amino acid phenylalanine. It accumulates in their blood and can lead to neurological problems. Synlogic has designed a strain of the E.Coli microorganism that metabolizes phenylalanine and could help phenylketonuria.
Solid Power (SLDP)
Solid Power (NASDAQ:SLDP), unlike Synlogic, isn’t anticipated to produce 10X returns immediately. Simply going by the numbers, it’s likely to have a 100% upside over the next year or so. That’s not bad, but it’s also not enough to turn $1 into $10.
The firm is developing solid-state battery technology that promises to revolutionize electric vehicles. Current commercial EV batteries rely on flammable liquid electrolytes with lower energy density. On the other hand, solid-state batteries replace the liquid electrolyte with a solid electrolyte that’s safer and provides a far greater range. At least, that’s the goal in theory.
It’s all about testing and iterating up to a commercially feasible battery. For Solid Power, initiating and scaling production from the company’s manufacturing facility in 2023 is the goal. In order for Solid Power to achieve this goal, the company will need to continue delivering products for sampling to potential customers, getting feedback, and iterating upward.
That should lead to as much as $20 million in revenue this year, with 10X potential longer down the line.
C3.ai (AI)
C3.ai (NYSE:AI) doesn’t have 10X potential in the short term, either. The stock is fully-priced now, meaning shares trade around their target price. But C3.ai has the potential to multiply in value moving forward. As its stock ticker suggests, C3.ai is a play in the rapidly-emerging world of artificial intelligence.
Many major tech companies are currently competing to carve out a dominant piece of the AI space. This list organizes such stocks by market capitalization. Although AI technology has the potential to increase their respective valuations in the future, there’s a key difference to understand. C3.ai is one of few pure-play AI firms developing a suite of enterprise AI software services and products.
That doesn’t guarantee success by any means, but it does provide the company with a focused business that can capitalize on this megatrend quicker. If AI leads to some of the business improvements it contends it can provide, AI stock could quickly be worth much more than $20.
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On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.