It's only February and the S&P 500 has already set record highs multiple times this year. With the economy looking strong, an election making risky political moves unlikely, and new trade policies in place with China, Mexico, and Canada, 2020 is shaping up to be another bullish year.
There have already been a number of big winners this year. Tesla shares have more than doubled this year on hopes for the company's disruptive potential in electric cars, batteries, and renewable energy, and Virgin Galactic shares have nearly tripled as bulls have pushed the only pure-play commercial space travel stock to new altitudes.
These won't be the only big winners this year. Let's take a look at three other stocks that could double by this summer.
1. Bed Bath & Beyond
It may be surprising to see the struggling home goods retailer on this list, but investors are already starting to get clued in to the company's turnaround potential. The stock rallied all the way from $7.31 per share in August to more than $17 in December, after Mark Tritton was named as the new CEO in October. Tritton comes to Bed Bath & Beyond (NASDAQ:BBBY) after serving as Chief Merchandise Officer at Target, where he helped guide that retailer to successful turnaround in part by launching a number of new owned brands at the big-box chain.
When Tritton has dropped hints about his strategy for Bed Bath & Beyond, investors have reacted favorably. Earlier this week, he said the company would sell personalizationmall.com for $252 million to help fund improvements in its stores, supply, and digital initiatives, pushing the stock up 7%.
It's also become clear that there's a lot of low-hanging fruit for Tritton to pick as he attempts to streamline the company. For instance, since taking the helm in November, he's cut the number of can openers the company sells from more than a dozen to three, and sales in the category rose. Doing so not only makes the customer experience better, but eliminates inventory and should help drive down costs and create economies of scale as the company can make bigger orders from the same suppliers.
The company earlier reported that comparable sales fell by an adjusted 13% in December and January, so its April earnings report will likely be a dud, but Tritton is preparing to roll out a comprehensive new strategy at an investor conference in May. If investors like what they hear and results improve, shares could make some serious gains.