Stocks to buy

To become a millionaire in the current environment, you’d either have to start with a very high capital or you would have to invest for years. Another pathway is investing in high-risk, high-reward assets. Thanks to their huge growth potential, high-risk, high-reward stocks could turn a small investment into a fortune, which is why they’re my go-to for millionaire-maker stocks.

Nonetheless, we’re in a tough spot for the stock market right now. The Federal Reserve has been continuously hiking interest rates, which means that the cost of capital is high and the liquidity is low.

We may be at the terminal rate now, but this is a drag for the stock market as it lowers corporate earnings and investor confidence. It also means that many high-quality stocks are trading at oversold levels as inflation fears and a recession on the horizon keeps investors at bay. But these are short-term noises that will soon fade away and leave behind a clear path for growth.

In short, I believe it is a rare opportunity to snap up some millionaire-maker stocks at bargain prices.

Here are three of them:

Luminar Technologies (LAZR)

Source: JHVEPhoto/shutterstock.com

One of the most exciting trends in the automotive industry is the development of self-driving cars. Imagine a future where you can sit back and relax while your car takes you to your destination safely and efficiently. Sounds amazing, right? Well, that future is closer than you think, thanks to companies like Luminar Technologies (NASDAQ:LAZR).

Luminar Technologies is a leader in lidar technology, which uses lasers to measure distances and create 3D maps of the surroundings. Lidar is a key component of self-driving cars, as it enables them to sense and avoid obstacles and navigate complex environments. Luminar Technologies has developed a proprietary lidar system that is cheaper, faster, and more reliable than its competitors.

The company has a huge opportunity to capitalize on the self-driving car market, which is expected to grow exponentially in the coming years. The company expects to grow its revenue by triple digits every year for the next five years, leading to a 32-fold expansion in sales. It also has a substantial backlog of $3.4 billion, reflecting its strong customer demand and long-term contracts. Analysts, on average, believe that the stock could deliver a 128.6% return in one year. Personally, I believe explosive gains are possible in the near term, especially if its Q1 report surprises.

Asana (ASAN)

Source: Piotr Swat / Shutterstock.com

If you’re looking for a high-growth tech stock that could bounce back strong in 2023, you might want to consider Asana (NYSE:ASAN). The company, which provides cloud-based project management and collaboration software, has seen its share price drop by more than 88% from its all-time high of $141.6. But I think the stock is trading at compelling levels right now and could soon turn a corner.

One of the primary reasons that Asana is on this list of millionaire-maker stocks is that the company is its CEO, Dustin Moskovitz. As one of the co-founders of Meta Platforms (NASDAQ:META), Moskovitz has a net worth of over $9 billion. He owns about 58% of Asana and has been buying more shares on the open market. This shows his confidence and commitment to the company, and I don’t doubt his experience in the tech sector. Plus, his pockets are deep enough to pull Asana out of any cash deficiencies. 

Another reason I like Asana is its large and growing total addressable market (TAM). The company estimates that its TAM will reach over $50 billion by 2025, driven by the increasing demand for remote work and digital transformation solutions.

Furthermore, Asana expects to accelerate its revenue growth to 45% in fiscal 2023, up from 34% in fiscal 2022. I believe more appreciation is necessary for ASAN to be at a fair value. Recently, analyst firm JMP Securities also reiterated a “market outperform” rating with a 72.36% upside.

Scorpio Tankers (STNG)

Source: Igor Karasi / Shutterstock.com

Scorpio Tankers (NYSE:STNG) is one of the biggest tanker companies. Demand for tankers has been surging after Russia invaded Ukraine, and Scorpio has benefited from the new trading patterns. European countries are weaning off imports from Russian pipelines and are now using tanker-dependent imports from other countries.

Indeed, analysts are bullish on the stock with a $75.13 price target, a 59.89% upside in one year. I believe higher is possible in a multi-year timeframe as its forward price-to-earnings ratio sits at just 3.56x currently. But once sales start growing again, I expect this could become one of the millionaire-maker stocks.

Finally, I would also note that the company has an astonishing 40.8% net margin. That’s better than almost 90% of its peers.

On the date of publication, Omor Ibne Ehsan 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.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

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