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

Investors constantly seek opportunities that could lead to significant gains over time. One effective strategy is to study previous successful investments, as they can guide where to allocate capital for future potential.

Throughout history, several companies have dramatically increased their shareholder value. Below, we explore three stocks that have transformed a $1,000 initial investment into $1 million or beyond.

Amazon

Amazon (AMZN 2.94%) tops our list. Since its IPO in May 1997, Amazon's share price has skyrocketed by 222,600% (as of December 5). This staggering increase means that an investment of $1,000 has now grown to over $2.2 million.

Originally focusing on the retail market, Amazon has evolved into a powerhouse in e-commerce, currently capturing nearly 38% of all online spending in the United States.

The company is also benefiting from powerful industry trends. Amazon Web Services, its cloud computing arm, holds a prominent market share, generating $103 billion in revenue in the last year. Additionally, Amazon offers a popular streaming service, Prime Video, and has made significant inroads in digital advertising.

Amazon is increasingly appealing to investors by concentrating on profitability. In the three months ending September 30, the company reported an operating income of $17.4 billion, reflecting a 55% year-over-year increase. With plans for continued cost reductions and enhanced operational efficiency, analysts expect operating income to grow at an impressive annual rate of 38.9% from 2023 to 2026.

Although shares are at all-time highs, there are still opportunities for investors. The forward price-to-earnings (P/E) ratio of 43.1 remains reasonable in light of Amazon's strong earnings projections.

Apple

Currently valued at just under $3.7 trillion, Apple (AAPL -0.08%) has consistently been the world's most valuable company. Since December 1980, Apple's stock has produced a remarkable total return of 245,800%, turning an initial investment of $1,000 into nearly $2.5 million.

Apple has established itself as a leader in consumer electronics by creating beautifully designed hardware accompanied by sophisticated software. Innovation has driven Apple's success, as it continues to release popular products like the iPhone, iPad, and MacBook.

The company generated $391 billion in sales in fiscal 2024, showcasing its immense scale. However, growth may be challenging to achieve, especially since updates to key products like the iPhone are less revolutionary than in the past.

Nevertheless, Apple remains financially robust, generating substantial free cash flow alongside a solid balance sheet.

Currently, Apple may not seem like the best buy. Its forward P/E ratio stands at 32.9, reflecting a 15% premium compared to its trailing-two-year average. This valuation could be viewed as high for a relatively slow-growing business.

Home Depot

Seeing Home Depot (HD 1.13%) featured here may come as a surprise since it is not a tech-based company. However, its stock has achieved phenomenal growth, turning $1,000 invested at its IPO in September 1981 into an astonishing $36.2 million today.

Home Depot's business model has remained consistent, selling tools, equipment, and appliances through its physical stores while also maintaining a substantial online presence to enhance customer accessibility.

Recently, Home Depot has faced challenges in growth due to macroeconomic factors. Consumers are cautious about spending on expensive home improvement projects, resulting in a 3.2% decline in same-store sales for fiscal 2023. Management anticipates a similar trend for the current fiscal year.

Regardless, Home Depot maintains a commanding position in the home improvement sector, recording $155 billion in trailing-12-month sales. As economic conditions improve, the company is poised for renewed growth, supported by trends such as an aging housing market and a shortage of available homes.

Currently, Home Depot shares can be purchased at a forward P/E ratio of 28.2. This valuation is considered high, suggesting that prospective investors might want to wait for a more favorable buying opportunity.

None of the authors hold positions in the mentioned stocks. It is important for investors to conduct thorough research before making financial decisions.

investments, stocks, opportunities