Markets are volatile again but is this sell-off creating the next generation of multi-bagger stocks? In this episode of In the Money with Amber Kanwar, Optimist Fund’s Jordan McNamee breaks down why he’s staying aggressively bullish despite market panic driven by AI disruption fears, geopolitical tension with Iran, and rising interest rate uncertainty.
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Past Pro Picks: March 13, 2025
- Carvana (CVNA): +31% since the pick — still a top-3 position with massive conviction.
- HelloFresh: Down 66% from March 13, but McNamee sold last summer (profit came but not consistently).
- ThredUp (TDUP): +36% since the pick, despite volatility (down ~70% from its August peak).
Here are three stocks McNamee thinks can 5x over the next 5 years:
- McNamee is coming back to this leading online consignment platform after a 70% drop since August.
- Business executing strongly: beat last year’s guidance and now guiding for 13% growth this year while continuing to expand margins; long-term potential for 15–20% topline growth with 20–25% EBITDA margins.
- Most compelling reason to own: Trading at just 1x sales for a scalable, high-margin marketplace with proven operational excellence in a structurally growing resale category.
- Upside potential: Could reach $30 in 5 years (currently ~$3.50); potential to hit $15 within the next 12 months.
2. Wayfair (W) – Early Innings of a Major Homegoods Recovery
- Dominant online home goods retailer positioned for a powerful rebound as the multi-year decline in the homegoods market finally bottoms and begins to recover.
- Revenue shifted from flat to +7% growth over the past year, with EBITDA margins expanding from ~4–5% to 7%; management now signaling confidence in returning to 20%+ organic growth.
- Most compelling reason to own: We’re in the first or second inning of the pendulum swinging back — high revenue growth is returning alongside very attractive incremental margins, which should drive explosive profitability over the next 3–5 years.
- Upside potential: Could reach $500 in 5 years (currently ~$76).
3. First Advantage (FA) – Background Screening Leader with Accelerating Growth
- Market leader in employment background screening with ~25% share; recently turned the corner to positive organic growth after years of market weakness.
- Delivered 12% organic growth in Q4 despite still-soft hiring volumes, driven by strong cross-selling of compliance solutions; hiring market has now stabilized and is showing sequential improvement.
- Most compelling reason to own: Exceptional risk/reward profile — trading at only ~9x earnings for a high-quality business that historically grows EPS 15–20% through the cycle and is now entering a strong recovery phase.
- Upside potential: Significant earnings acceleration ahead with meaningful multiple expansion as hiring volumes improve.
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DISCLAIMERS: This text AI generated and should be checked against actual delivery. The content provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.
