2 Monster Stocks to Hold for the Next 5 Years

Key Points

• Multibagger stocks can grow your wealth exponentially.

• Niche players in high-potential industries can deliver monster returns over time.

• Robotics and rare earths are two such industries you'd want to look at right away.

• 10 stocks we like better than Symbotic ›

Some stocks don't just outperform the broader markets -- they have the potential to deliver monumental returns over time, supercharging your portfolio for years to come. They're not hard to find if you know where to look. Such stocks with multibagger potential are often hidden among leaders in fast-growing industries, first movers in industries with exponential potential, and innovative start-ups that are shaping the future.

Two such stocks have caught my attention. Each has such compelling growth prospects that buying them now and holding them could yield monster returns over the next five years or so.

The biggest beneficiary of the U.S. rare-earth renaissance

Rare-earth elements technically aren't rare, but it's not easy to extract them in ways that are economically viable. China has a monopoly, accounting for almost 70% of the global rare-earth extraction. That also means 80% of the rare-earth elements consumed in the U.S. are imported, with nearly all of them coming from China.

That's not a great place to be. Rare-earth elements are vital for electronics, semiconductors, robotics, defense and aerospace technologies, wind turbines, electric vehicles, and more. However, China's dominance poses significant supply risks to the U.S. Additionally, it has always disincentivized U.S. mining companies from pouring money into rare-earth elements. President Donald Trump wants to change that and, therefore, has allocated billions of dollars to critical mineral projects, even buying stakes in some domestic producers to secure U.S. supply chains.

There is only one active rare-earth mine in the U.S.: the Mountain Pass in California, owned and operated by MP Materials (NYSE: MP).

In July 2025, the U.S. Department of Defense, rebranded as the Department of War (DOW) by Trump, acquired a 15% stake in MP Materials and became its largest shareholder. MP Materials will build a rare-earth magnet manufacturing facility, known as the 10X facility, with the DOW committing to purchase 100% of the rare-earth magnets produced at the facility for 10 years. Two of its other major deals include:

• A $500 million multiyear agreement with tech giant Apple (NASDAQ: AAPL) to supply magnets.

• A partnership with the DOW and the Saudi Arabian Mining Company (Maaden) to develop a rare-earth refinery in the Kingdom of Saudi Arabia.

MP Materials currently produces rare-earth oxides and metals and will begin production of magnets by the end of 2025. MP Materials stock already carries a market cap of $10 billion, but that could look minuscule five years from now.

Making big strides in automation

Shares of Symbotic (NASDAQ: SYM) have surged over 250% so far in 2025, as of this writing. And there could be a lot more to come.

Symbotic automates warehouses and distribution centers with artificial intelligence (AI)-powered robotics that can move, store, and sort items. Symbotic went public in 2022 but has been working with Walmart (NYSE: WMT) since 2015 to deploy robotic systems at multiple distribution centers. In January 2025, Symbotic acquired Walmart's advanced systems and robotics (ASR) business for automated fulfillment of orders, a new product category for Symbotic.

Under yet another new and recent agreement, Symbotic will develop and install automated micro-fulfillment systems for online pickup and delivery at Walmart's retail stores. Symbotic expects its first prototype to be ready in 2026. Meanwhile, Symbotic is developing a next-generation storage technology as well. Besides Walmart, Symbotic's other customers include Albertsons, C&S Wholesale Grocers, GreenBox, and Target.

Symbotic has also just announced something big: It has signed up Medline as a customer, marking its foray into healthcare. Medline is a major distributor of medical supplies in the U.S. and is expected to go public soon. Symbotic deployed its first system to Medline last quarter.

Symbotic's entry into healthcare marks a significant milestone, as it opens up a new vertical for the company beyond retail and could fast-track its sales growth. Symbotic just posted a 26% growth in revenue for the fiscal year that ended Sept. 27, 2025, and projects similar growth for the first quarter of fiscal year 2026.

Most importantly, Symbotic ended the year with a backlog of $22.5 billion. That's huge, as it represents nearly a decade's worth of sales. So, even though Symbotic's market cap has surpassed $50 billion, its estimated addressable market runs into the hundreds of billions of dollars, making it a solid stock to own for the long term.

Both MP Materials and Symbotic share a common link -- they have the first-mover advantage in their respective industries, and both industries have exponential growth potential. That's what makes these stocks so appealing. Growth stocks carry their share of risks, but with both Symbotic and MP Materials already generating revenue and striking significant partnerships, they're worth the risk.

Should you buy stock in Symbotic right now?

Before you buy stock in Symbotic, consider this:

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Symbotic, Target, and Walmart. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.

2 Monster Stocks to Hold for the Next 5 Years was originally published by The Motley Fool