They are leaders in their respective industries.
Doubling your money in the stock market is not as difficult as you might think. Thanks to the power of compound interest, it only takes a few years of decent profits to achieve that result. If you choose the right stocks.
Of course, during the market rally over the past 15 months, many stocks have soared more than 100%. But all he needs to double his investment is about 6 years of growth at an average annual rate of 12%.
You can access these benefits simply by owning . S&P500 index fund. Over the past decade, the broader market has grown on average by about 15% per year. However, investors can aim for even better results by purchasing individual growth stocks as well. Here's a look at two stocks that are likely to outperform the market.
1. Palo Alto Networks
The cybersecurity industry is an important industry and is becoming a bigger priority as companies move more work to the cloud. Please consider purchasing shares of palo alto networks (PANW -1.22%) Come experience this fascinating space.
With full-year revenues of $7 billion, Palo Alto Networks is a leader in cybersecurity. Sales have been growing at an impressive rate recently, with revenue expected to grow by almost 20% this year, after growing 25% in 2023. Palo Alto Networks recently turned profitable, and management is eager to build on its strong momentum. Following his 5 percentage point improvement last year, operating margins are expected to increase in 2024 and beyond.
Indeed, you can benefit from industry growth by owning a more diversified software company such as: microsoft. However, Palo Alto Networks offers more targeted investments in cybersecurity, giving patient investors a greater chance of above-average returns.
2. Adobe
adobe (ADBE -1.73%) is already a big company, but the software-as-a-service giant has a lot of room to grow from here. The business is ideally placed to help customers create digital content and experiences and capitalize on emerging trends around generative artificial intelligence (AI).
Excitement about new technology has increased demand for Adobe's subscription services, fueling revenue growth over the past year. CEO Shantanu Narayan said in mid-March that the company has “done an incredible job leveraging the power of AI to bring breakthrough innovation across our portfolio.”
The problem is that the software giants have yet to demonstrate that they can make money from these innovations. Net income fell 50% in the most recent quarter as Adobe increased spending in areas such as research and development (R&D) and marketing. These stumbles help explain why the stock has lagged the market by a wide margin through 2024.
Investors who take advantage of this discount will reap impressive profits over the next few years. After all, Adobe's profit trends this year have been temporarily held back by costs related to the canceled Figma acquisition. Those expenses, including his $1 billion hit to 2024 revenues, will not be repeated.
A big thing to watch this year is how Adobe starts to capitalize on the excitement around AI-powered tools. The first part of this plan is working well, as subscription levels for products like Photoshop and its Creative Cloud platform have jumped. Prices will also increase to reflect the increased value that users receive from these products. And as Adobe's revenue growth accelerates, shareholders should be excited about the returns they can get from the software giant.
Demitri Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has positions in and recommends Adobe, Microsoft, and Palo Alto Networks. The Motley Fool recommends the following options: His January 2026 $395 long call on Microsoft and his January 2026 $405 short call on Microsoft. The Motley Fool has a disclosure policy.
