Want to Retire Rich? 2 Growth Stocks That Could Soar by 100% by 2030

Historically, the S&P 500 has returned an average of 10% per year, which means investors who invest in an S&P index fund today and hold it until late 2030 will have an expected total return of roughly 61%.

That's not too shabby.

But if you want to double your money or more in that time (or faster), you'll need to look for growth stocks with market-beating potential. Let's discuss some reasons why Amazon (NASDAQ: AMZN) and Luckin Coffee (OTC: LKNC.Y) fit the bill.

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Amazon

With a market cap of $2.34 trillion, Amazon is one of the largest companies in the world. And the strengths that carried it to its previous successes can help it continue to outperform as it pivots to new technological opportunities like warehouse robotics and generative artificial intelligence (AI).

To be fair, large-cap and megacap companies often aren't popular with growth investors because it can feel like their best growth days are behind them. But while Amazon's top-line gains have indeed slowed, it still has a huge opportunity to improve its profitability through cost-cutting and new technologies. The company's second-quarter results show the impacts of these long-term strategies.

While its net sales grew by 13% year over year, operating income surged by 31% as margins improved across the business. Amazon has been working to improve its logistics and fulfillment network. These efforts include adding more than 1 million robots capable of moving and packing merchandise. CEO Andy Jassy also suggests generative AI will allow the company to replace some office workers. And this will help it continue to increase profitability over the coming years.

Trading now at a forward price-to-earnings (P/E) multiple of 29, Amazon's valuation looks reasonable considering its recent surge in profit growth and exposure to transformational new technologies. For context, the Nasdaq-100 index has an average forward P/E of 27. Often, high-quality, blue chip stocks trade at a premium.

Luckin Coffee

With shares up by a whopping 900% over the past five years, Luckin Coffee's recovery is already in full swing. The China-based coffee shop chain gradually recovered most of the market cap it lost due to the fraud scandal that led to its delisting from the Nasdaq in 2020. Now, investors can look forward to years of potentially explosive top-line growth.

In the second quarter, Luckin's revenue jumped 47% year over year to $1.72 billion, driven mainly by new store openings and same-store sales growth in its home market. The company also enjoys a healthy contribution from partnership stores (franchises), which generated roughly $400 million in revenue (23% of the total). However, most excitingly, Luckin's growth story looks set to go international over the next five years and beyond.

Luckin has already established solid footholds in Singapore and Malaysia. And in late June, it opened its first U.S. stores in New York City, where it will compete directly with domestic giants like Starbucks and Dunkin' in a $88.9 billion coffee market. The company has already established a compelling niche, showcasing its discount-heavy business model and cashier-free experience, where orders must be placed through its mobile app. Luckin is likely operating its U.S. stores at a loss while it works to grow its brand awareness, just like it did in China.

Trading at a forward price-to-earnings (P/E) multiple of just 17, the company is valued at a discount to both the S&P 500 average of 31 and Starbucks, which boasts a forward P/E of 32. With a dirt-cheap price tag and plenty of room to grow, Luckin Coffee has all the ingredients needed to generate years of market-beating returns for shareholders.

Which growth stock is best for you?

While both Amazon and Luckin Coffee could potentially double by 2030, they are appropriate picks for different investment strategies. While a blue-chip company like Amazon offers safety and stability, Luckin Coffee's aggressive international expansion carries greater uncertainty with greater potential rewards.

Will Ebiefung has positions in Luckin Coffee. The Motley Fool has positions in and recommends Amazon, Luckin Coffee, and Starbucks. The Motley Fool has a disclosure policy.