These powerhouses can provide a robust base for your investment portfolio. While predicting the future for a decade seems daunting, spotting companies primed for significant revenue and earnings growth in the next ten years is Challenging. Taking the time to identify these businesses can prove immensely profitable as they have the potential to yield substantial gains.
Here are three impressive companies that could be prime candidates. Each is poised to capitalize on major trends in the next decade, promising substantial returns for their shareholders.
Brookfield Renewable Partners
As the world grapples with the urgent need to address climate change, switching to green energy will be a dominant and profitable trend in the upcoming decade. Brookfield Renewable Partners (NYSE: BEP) is perfectly aligned to reap benefits from this worldwide shift.
Brookfield Renewable’s mission is to aid the world in transitioning to renewable energy sources and reaching decarbonization objectives. The company boasts a diverse portfolio of high-quality assets, including wind, solar, hydroelectric, and other sustainable energy projects. It operates on a global scale, with businesses spread across five continents.
Structured as a limited partnership, the company is committed to rewarding its investors with abundant cash flow via a steadily increasing distribution, currently yielding over 4%. With the demand for clean energy assured, Brookfield Renewable is confident that its investment strategy will allow it to grow its already substantial cash payout by 5% to 9% annually, delivering total investor returns of 12% to 15% annually.
Eli Lilly
With potential blockbuster treatments in three major areas – diabetes, obesity, and Alzheimer’s – Eli Lilly (NYSE: LLY) boasts an enviable growth pipeline among pharmaceutical giants. Additionally, healthcare trends suggest a growing need for safe and effective treatments for these conditions, projected to affect an increasing number of people in the coming decade.
In May 2022, Eli Lilly’s Mounjaro was approved by the Food and Drug Administration (FDA) as an injectable drug for adults with type 2 diabetes, designed to enhance glycemic control in conjunction with diet and exercise.
Furthermore, the drug (tripeptide) showed promising results in phase 3 clinical trials for weight loss. After 72 weeks, participants had lost up to 34 pounds, with over 80% achieving at least a 5% reduction in body weight. Tirzepatide has the potential to generate billions in sales in an obesity drug market that could surge to $200 billion in the next decade, as per investment bank Barclays’ prediction.
Eli Lilly also has another potential game-changer in Donanemab. The drug slowed cognitive and functional decline in patients with early Alzheimer’s by 35% compared to a placebo in a phase 3 trial. Donanemab also helped to reduce brain plaque associated with the disease, affecting over 6 million people in the U.S. alone.
The company’s robust drug portfolio is expected to drive significant sales and profit growth, leading to strong shareholder returns in the forthcoming years.
Tesla
Tesla (NASDAQ: TSLA) is another good business well-positioned to capitalize on multiple significant trends. The primary one is transitioning from fossil fuel vehicles to electric vehicles (EVs). As the sector’s frontrunner, Tesla is best placed to benefit from the rapid uptake of battery-powered cars.
As the company scales up production, its profitability is increasing. High operating margins allow Tesla to lower vehicle prices to boost sales, moving closer to its ambition of manufacturing 20 million EVs annually by 2030, up from less than 1.4 million in 2022.
The company’s enhanced focus on software could further increase profit margins in the years ahead. Cathy Wood’s Ark Investment Management projects that advancements in autonomous driving technology could create an $11 trillion market opportunity by the decade’s end. Tesla’s aggressive investment in self-driving technology puts it in a favourable position to lead this potential mega-market.
Tesla also stands to gain from the automation trend. At its AI Day event in September, the company unveiled a concept for a humanoid robot named Optimus. The plan is to develop and mass-produce an AI-driven robot to tackle “dangerous, repetitive, and boring tasks,” according to CEO Elon Musk.
Musk considers the Optimus project a priority, believing it could become the company’s most valuable division. With such captivating growth opportunities in EVs, autonomous software, and robotics, Tesla offers multiple avenues for shareholder success.
Brookfield Renewable Partners, Eli Lilly, and Tesla represent a compelling blend of stability, growth, and innovation. Their potential to tap into significant global trends in renewable energy, healthcare, and electric vehicles makes them attractive investment propositions for the coming decade. They are poised to survive and thrive in their sectors, providing promising returns to their shareholders. For investors willing to stay invested for the long haul, these companies offer exciting opportunities to partake in some of our time’s most significant global transitions.
