Tesla Is 50% Overvalued, But These 3 Hyper-Growth Blue Chips Could Triple In The Next 5 Years

Tesla Is 50% Overvalued, But These 3 Hyper-Growth Blue Chips Could Triple In The Next 5 Years

Posted On July 15, 2021 3:41 am

Tesla is one of the fastest-growing companies on earth, with a 37% CAGR growth consensus and Cathie Wood at ARK forecasting growth as high as 86% CAGR.

ARK’s latest TSLA valuation model says that TSLA has a 75% chance of hitting $3,000 to $4,000 by 2025. That’s 40% to 50% CAGR returns from here.

A careful analysis of ARK’s model shows forecasts that are 300% to 700% more optimistic than the 42 analyst consensus. Tesla is 50% overvalued and worth about $436 today.

Today, Tesla’s hyper-growth equates to 10% CAGR analyst return expectations over the next five years, and just 6.2% on a risk-adjusted basis.

In contrast, these three hyper-growth blue-chips that DK and I have been buying recently are 18% to 31% undervalued. Their potent combination of yield, growth, value, and quality offers 172% to 400% five-year consensus return potentials. In other words, a reasonable possibility to triple your money (or better) in the next five years.

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Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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