From Nasdaq:

With an average 10% yearly return, the stock market is a great way to build wealth. Some companies have outperformed, turning small investments into over $1 million. Apple’s stock has surged 191,000% in the last 43 years, turning $1,000 into $1.9 million, including dividends. This growth is largely due to the popularity of products such as the iPhone, MacBook, AirPods, and Watch. However, Apple’s mature enterprise and high P/E ratio indicate limited future returns.

Another consumer stock, Costco, has turned a $1,000 investment into $1 million in 49 years, including dividends. Costco’s high-margin membership model brings in recurring revenue, with membership sales up 8.2% and a renewal rate of over 90%. With a P/E multiple of 49.4, Costco is not cheap but offers meaningful growth potential.

Over the last 40 years, Home Depot has seen remarkable growth, turning $1,000 into nearly $30 million, including dividends. Home Depot’s strong focus on efficiencies has led to high operating margin and return on invested capital. Shares currently trade at a P/E ratio of 23.3, making it a reasonable investment that could offer solid long-term growth.

Investing in Home Depot might be wise based on its P/E ratio and long-term industry dominance. Additionally, consider the advice of the Motley Fool Stock Advisor analyst team, which regularly identifies high-growth stocks that could outperform the market.

When making investment decisions, consider the risks and returns associated with the stock. The 10 best stocks for investors to buy now may offer higher potential returns compared to Home Depot or these three stocks. Always research recommended stocks thoroughly before making investment decisions.



Read more: 3 Stocks That Turned $1,000 Into 1 Million (or More)