This Hot Tech Stock Can Double Your Money in Two Years
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Ordering food from your favorite restaurant has never been easier. Download an app, find a meal, click order, and you’ll be eating within an hour.
You see, tech innovation is making the $800 billion U.S. restaurant industry a prime investment target…
And we found a hot tech stock specializing in online food deliveries that could double your money by 2020.
Money Morning Defense and Tech Specialist Michael Robinson believes “even a small portion of that massive market spells big profits for a firm that has the right kind of tech to hook hungry buyers as repeat clients.”
And he says that firm is GrubHub Inc. (Nasdaq: GRUB)…
Why GRUB Is One of the Hottest Tech Stocks to Buy Right Now
Your local restaurant doesn’t have the time, money, or expertise to launch its own mobile-ordering systems.
That’s where GrubHub comes in.
Just sign in to GRUB on your phone or computer, search for the cuisine you want, hit order, and you’ll have an estimate of how long it will take before you start chowing down.
In fact, GrubHub’s technology makes it so easy to order that industry experts believe online restaurant orders could double in less than a decade.
And if that happens, the price of GRUB will double, according to Robinson.
That means all you have to do is sit back and wait for a 100% return.
But there are even more reasons to get behind GRUB stock…
Why the GrubHub Stock Price Will Double
Robinson has three reasons why he loves GRUB stock.
The first is its CEO, Matt Maloney.
He is the guiding force behind the company’s amazing sales and financial success.
“Maloney holds two master’s degrees, including an MBA, from the University of Chicago, where he serves as an advisor. In 2016, Forbes named him one of the nation’s most powerful CEOs under 40. Two years before that, Fortune named him one of the top 50 businesspeople,” Robinson said.
The second reason Robinson likes GRUB is the projected growth of online food ordering.
“Over the past three years, GrubHub has grown its sales by an average 38%, meaning they are doubling roughly every two years. But it did even better in the first quarter, with sales rising 49% from the year-ago quarter to a record $232 million. And recently, daily active diners climbed 72% to 15.1 million as more diners decide to opt for takeout or to have meals brought to their homes. Based on those results, I still see plenty more growth ahead.”
Finally, GRUB makes Robinson’s list for a hot tech stock to buy now because it could double your money by 2021.
“This is where we look at the firm’s earnings growth and see how long it will take to double profits. By doing that we can figure out how long, on average, it should take for the stock to roughly double. Now we’ll consider what I call my doubling calculator. Mathematicians call it the ‘Rule of 72.’ With an $11 billion market cap, the stock trades at roughly $118. And over the past three years, the firm has had an average 33% growth in earnings per share. That figure more than doubled in the first quarter, to 70% earnings growth. To take a cautious approach, I cut that by more than 50%. Let’s divide the compound profit growth rate of 30% into the number 72. We find that it should double in two years. But to be extra conservative, I extended that out to 2.4 years.”
This is one of Robinson’s favorite stocks.
