Finding ten-bagger stocks is not easy, but history shows it happens more regularly than most investors expect across various sectors.
All of the Magnificent Seven stocks have been ten-baggers over their history, alongside many other S&P 500 constituents that quietly delivered massive long-term returns.
Over a long enough time frame, successful companies trading at reasonable valuations can deliver returns of 900% or more for patient investors.
The first candidate is Upstart (NASDAQ: UPST), an AI-driven loan origination platform that briefly became a market darling during the pandemic before collapsing as interest rates rose sharply in 2022.
Upstart is still down roughly 90% from its all-time high, yet the company is now profitable on a GAAP basis and is projecting 35% revenue growth through 2028.
With a market cap of just $2.4 billion and an expanding presence in home and auto loan markets, Upstart is competing in an enormous addressable market with significant room to grow.
The company is also pursuing a bank charter, which would lower costs and make it easier to launch new products nationwide, further strengthening its competitive position.
After adjusting for stock-based compensation, Upstart trades at a price-to-earnings ratio of around 13, which looks like a significant mispricing for a disruptive AI-powered growth company.
The second stock is RH (NYSE: RH), the luxury home furnishings brand formerly known as Restoration Hardware, which has fallen more than 80% from its all-time high amid a stagnant housing market.
Despite that pressure, RH is targeting revenue growth of 5.5% to 7% in 2026 and an adjusted EBITDA margin of 15% to 16.2%, demonstrating resilience in a difficult macroeconomic environment.
CEO Gary Friedman has extended the brand into Europe and launched RH guesthouses along with jet and yacht charter services, demonstrating continued ambition to grow the luxury ecosystem.
His previous bold moves, including shifting RH to a membership model, paid off handsomely, and the company has firmly established itself as a premium retailer capable of commanding higher margins.
At a market cap of just $2.4 billion, RH is positioned to benefit enormously once the housing market recovers and consumer demand for high-end home furnishings rebounds.
The third pick is Sweetgreen (NYSE: SG), the fast-casual salad chain that has struggled to turn a profit since its 2021 IPO while facing customer resistance over its pricing strategy.
Despite recent setbacks including a cyclosporiasis outbreak and the sale of its Infinite Kitchen technology to Wonder, Sweetgreen has retained the right to use that technology in its own locations.
The chain’s average unit volumes sit at $2.5 million, not far behind Chipotle, and its new lower-priced wraps have been well received by consumers looking for more affordable options.
Sweetgreen has also introduced a turnaround plan focused on cost reduction and a path toward profitability, alongside continued plans for new store expansion over the next decade.
At a market cap of less than $1 billion, the stock appears priced for failure rather than for a company that analysts believe could reach a $9 billion market cap if it executes its growth plan.
All three companies face real risks and require patience, but each has a credible path to delivering outsized returns for investors willing to hold through near-term volatility.
