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2 Stocks That Could Double Within 3 Years | The Motley Fool

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  Published in Stocks and Investing on Saturday, October 18th 2025 at 13:21 GMT by The Motley Fool
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Two Stocks Poised for Potential Doubling Within Three Years, According to The Motley Fool

The Motley Fool’s recent article, published October 18, 2025, identifies two stocks with potential to double in value within a three-year timeframe. Analyst Rick Munarriz highlights companies demonstrating strong growth trajectories and favorable market conditions, acknowledging the inherent risks associated with any investment prediction. The selections focus on distinct sectors – digital advertising and renewable energy – reflecting differing avenues for significant expansion.

The first stock identified is PubMatic (PUBM), a company specializing in ad tech. PubMatic operates as a supply-side platform (SSP), connecting publishers to advertisers. This essentially means they help websites and apps sell their advertising space programmatically. The article emphasizes PubMatic’s focus on connected TV (CTV) advertising, a rapidly expanding segment of the digital advertising market. CTV represents streaming services like Netflix, Hulu, and Disney+, where viewers consume content through internet-connected devices. Munarriz points out that CTV ad spending is still significantly lower than traditional television, suggesting substantial room for growth.

According to the article, PubMatic’s revenue has consistently exceeded expectations, demonstrating a robust ability to capitalize on this burgeoning market. The company's focus on privacy-centric advertising solutions also positions it well in an increasingly regulated digital landscape. The piece references PubMatic’s Q3 2025 earnings report, which showed impressive year-over-year growth in both revenue and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). [https://investor.pubmatic.com/news/news-details/2025/PubMatic-Announces-Third-Quarter-2025-Results/default.aspx] This report confirmed continued strength in the CTV segment and overall positive performance.

The article acknowledges that PubMatic faces competition from larger players like Google and Magnite, but argues its agility and specialization within the SSP space provide a competitive edge. Furthermore, Munarriz suggests that PubMatic’s current valuation is relatively conservative compared to peers, leaving room for significant upside potential if the company continues on its growth trajectory. The article notes a price-to-earnings (P/E) ratio significantly lower than industry averages, implying undervaluation based on future earnings projections.

The second stock highlighted is Enphase Energy (ENPH), a leading provider of microinverter-based solar and storage systems. Enphase’s technology differs from traditional string inverters by placing individual inverters on each solar panel, maximizing energy production and allowing for greater system monitoring and optimization. The article emphasizes the increasing demand for residential and commercial solar installations driven by rising electricity costs and growing environmental awareness.

Munarriz points to several factors supporting Enphase's potential for doubling within three years. These include the Inflation Reduction Act (IRA) in the United States, which provides significant tax credits and incentives for renewable energy adoption. [https://www.energy.gov/clean-energy-tax-credits] The IRA is expected to significantly boost solar installations across the country. The article also notes Enphase’s expansion into international markets, particularly Europe, where energy security concerns are driving increased investment in renewables.

Enphase's financial performance has been consistently strong, with robust revenue growth and expanding profit margins. The company’s integrated hardware and software solutions provide a competitive advantage, allowing for greater control over the entire solar system lifecycle. The article references Enphase’s recent product launches, including advanced energy storage systems, which further enhance its offerings and cater to evolving customer needs. According to the piece, these advancements solidify Enphase's position as an innovator in the renewable energy sector.

However, the article also cautions that Enphase faces challenges, including potential supply chain disruptions and increased competition from Chinese solar panel manufacturers. The price of polysilicon, a key component in solar panels, has fluctuated significantly, impacting production costs. The piece suggests that while these risks exist, Enphase’s technological leadership and strong brand reputation should help it navigate these headwinds.

Munarriz concludes by reiterating that stock market investments carry inherent risk and past performance is not indicative of future results. While both PubMatic and Enphase demonstrate compelling growth potential, investors should conduct their own thorough research and consider their individual risk tolerance before making any investment decisions. The article emphasizes the importance of a long-term perspective and suggests these stocks are suitable for investors seeking exposure to high-growth sectors with significant upside potential. The piece also encourages readers to review PubMatic’s investor relations page [https://investor.pubmatic.com/] and Enphase Energy's website [https://enphase.com/en-US] for more detailed information.