Got $5,000? 2 Top Growth Stocks to Buy That Could Double Your Money.

While $5,000 may not seem like much to some, with the power to invest, that money can turn into $10,000, $20,000, and $50,000 over time. Thanks to compounding, your money will grow faster the longer it is invested, so it’s always a good idea to start investing sooner rather than later.

If you want to double your money — and have a little patience — keep reading to see two actions that could turn $5,000 into $10,000 in no time.

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1. Redfin

Redfin (RDFN 18.88%) was a big winner during the pandemic, but the real estate platform’s stock fell into a bear market as interest rates rose and has remained bearish ever since.

However, economic conditions are beginning to change, and Redfin seems poised to capitalize on them. First, a recent settlement with the National Association of Realtors will change the way commissions work in the real estate industry, which could benefit Redfin as it has led the fight against high commissions.

More importantly, the company stands to benefit from falling interest rates as the housing market shows signs of finally turning around. Interest rates on 30-year fixed mortgages fell to 6.5%, the lowest rate in more than a year, and mortgage rates look set to fall further when the Federal Reserve is expected to start cutting rates interest rates at the September meeting.

Lower rates will lower monthly payments, spurring increased demand and encouraging more housing inventory to come on the market, which will benefit Redfin. There is substantial demand for homes in the market, and home sales could increase as rates fall, as many potential sellers wait for rates to drop enough to justify forgoing a low-rate mortgage.

During the recession, Redfin cut costs and closed its iBuying program, which should help improve margins in the recovery. In addition, the company invested in digital businesses that have already started paying off as it added a self-service platform for agents, landlords and tenants.

Redfin currently has a market cap of just $1 billion, which means it’s trading at a price-to-sales ratio of about 1. If the real estate market cooperates and the company returns to growth, the stock could easily double by here.

2. Super Micro Computer

Another stock with a lot of doubling potential is Super Micro Computer (SMCI 1.39%)the fast-growing maker of servers that are popular for running artificial intelligence (AI) applications.

For the stock to double, Supermicro would only need to recoup its March losses. Shares soared through late 2023 and early 2024 as investors discovered the rapid growth driven by artificial intelligence. However, the stock gave up some of those gains as it fell on a wave when it was admitted to S&P 500. Broader concerns about the AI ​​boom and shrinking gross margins also weighed on the stock.

However, the latest earnings report shows that the stock continues to put up successful numbers. Revenue rose 143% in the recently reported fiscal fourth quarter to $5.3 billion, and it expects even faster growth in the current quarter, forecasting a peak growth of 183%-230%. Adjusted earnings per share in the quarter nearly doubled from $3.51 to $6.25.

Supermicro looks like a great candidate to double, as the company expects margins to expand this year as it monetizes earlier investments and benefits from the launch of a new direct liquid cooling system.

Super Micro Computer stock is also cheap, especially for a company that’s growing as fast as it is. It currently trades at a price-to-earnings ratio of just 31, which seems to reflect recent skepticism about AI’s long-term potential.

However, Supermicro is growing fast and there is a long growth track as companies continue to invest in AI infrastructure to develop general artificial intelligence. At the current price, the stock looks like a good bet to turn $5,000 into $10,000.