By all measures, 2017 was a stellar year for U.S. stocks, with the Dow hitting several record highs and the S&P 500 closing at an eye-popping level of 2,700.  But, will the smooth sail continue this year? Wall Street’s bulls believe that sweeping tax cuts by the Republican-led Congress will add up to bigger profits and larger stock gains this year. The market is also expected to continue its winning streak banking on a rise in wages and more confident consumers. Needless to say, the economy is on track to see the fastest expansion in decades. And it has successfully unloaded some of the baggage that had slowed it down since the Great Recession in 2009.

As many of the supportive conditions that boosted the market in 2017 are likely to stay in 2018, investing in multibaggers seems judicious. These stocks will make most of the bull run, courtesy of strong fundamentals and businesses that can multiply in a short span of time. After all, these stocks have seen their prices increase multiple times their initial investment values.

Markets Pin Hopes on Another Banner Year

In 2017, the Dow gained 25.1% after hitting 71 record closing highs, the highest since the blue-chip index’s creation in 1896. The S&P 500 added 19.4%, while the Nasdaq outperformed both with a 29% gain. The tech-heavy index moved north for the sixth straight year — its longest streak since the one that lasted from 1975 to 1980, per WSJ Market Data Group. In fact, all the three major bourses recorded the best year since 2013.

The most optimistic stock strategist further says that U.S. stocks will post sizeable returns this year as well. While some expect the Dow to hit 30,000, Tony Dwyer, the chief market strategist at New York financial firm Canaccord Genuity, raised 2018 year-end target for the S&P 500 to 3,100, up from an earlier projection of 2,800. This will mark a return of almost 16% higher than its current level of around 2,680.

So, what’s driving such bullish sentiments?

Landmark Tax Bill

President Trump’s tax cut had lifted optimism about corporate earnings, prompting many analysts to raise their forecast for business profits. The House of Representatives approved the biggest overhaul of the U.S. tax code in 30 years. Republicans successfully countered opposition from Democrats to pass the bill that will slash corporate taxes and provide temporary tax relief to both wealthy and middle-class Americans. The headline-grabbing move was that the corporate tax rate will be lowered from 35% to 21% and will be implemented next year, instead of being delayed until 2019.

Republicans also repealed the 20% corporate alternative minimum tax, while any income brought back from overseas will be taxed 8% to 15.5%, instead of the current 35%. Immediate offset of spending on short lived capital equipment is expected to further save U.S. companies around $32.5 billion in 2018, as per Congress’s joint committee on taxation (read more: GOP Passes Landmark Tax Bill: Best & Worst for Stocks).

Americans Upbeat About Economy

Consumers, in the meanwhile, have stepped into the new year with confidence. The minimum wage is poised to increase in 18 states and around 20 cities in the United States, according to an analysis by the National Employment Law Project. This will result in inching employees wage closer to $15 an hour, which is known as “living wage.” Jobless rate is already at its lowest since 2000 and job openings are abundant too.

A very strong job market fueled consumer confidence. As per the Conference Board, consumer confidence continues to hover near the 17-year high set in November. Lynn Franco, director of economic indicators at the Conference Board, added that “consumers’ expectations remain at historically strong levels, suggesting economic growth will continue well into 2018.” Diversified financial services company, Wells Fargo & Company has predicted that the U.S. economy will expand an average 2.5% each quarter this year and the next.

5 Multibaggers to Watch Out For in 2018

The Republican tax-cut plan, recently signed into law by Trump, uptick in minimum wage, consumers planning to make big-ticket purchases and a strengthening economy call for investing in multibaggers. These stocks will cash in on such positive developments and give returns that are several times their cost. We have, thus, selected five such stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Madrigal Pharmaceuticals, Inc. , a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutic candidates for the treatment of cardiovascular, metabolic, and liver diseases. The company has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings rose more than 100% in the last 60 days.

Madrigal Pharmaceuticals has yielded a return of more than 100% in 2017. Moreover, its expected growth rate for the current year is 49.3%, better than the industry’s expected gain of 7.9%.

Boot Barn Holdings, Inc.  — a Zacks Rank #2 company — is a lifestyle retail chain which operates specialty retail stores in the United States. The Zacks Consensus Estimate for its current-year earnings advanced 3.4% over the last 60 days.

Boot Barn yielded a return 32.3% last year. The stock is expected to grow at a rate of 10.6% in the current year, in contrast to the industry’s projected decline of 3.3%.

Famous Dave's of America, Inc.-develops, owns, operates, and franchises restaurants under the Famous Daves name. The company sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings rose more than 100% in the last 60 days.

Famous Dave's of America gave a return 32.3% in 2017. Also, its expected growth rate for the current year is more than 100%, in contrast to the industry’s projected decline of 0.3%.

CVR Refining, LP  operates as an independent petroleum refiner and marketer of transportation fuels in the United States. The stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings rose 16.9% in the last 90 days.

CVR Refining has yielded a return of 59.1% in 2017. Moreover, its expected growth rate for the current year is more than 100%, way higher than the industry’s expected gain of 9.2%.

eGain Corporation  provides cloud-based customer engagement software solutions worldwide. The stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings climbed 13% in the last 60 days.

eGain has given a return of more than 100% last year. Further, its expected growth rate for the current year is 25%, higher than the industry’s projected gain of 12.8%.

Zacks Editor-in-Chief Goes ""All In"" on This Stock

Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

MORE WILL UPDATE SOON!!

My top 10 stocks for 2018

The stock market is at record highs. The S&P is nearly at an eye-popping level of 2,700 — with some analysts predicting that it will hit 3,000 by Saturday.

This bull market is the second longest ever with over eight years of rising stock prices. But will the good times keep rolling in 2018?
The following is my Top 10 for 2018, listed in alphabetical order. Prices are as of the December 19 close. This year's Top Ten represent a nice combination of growth and defensiveness. Seven of the 11 S&P 500 industry sectors are represented, and their average long-term estimated growth rate (in earnings per share) is well in excess of the overall market. On average, these companies are much larger than the average S&P 500 company while carrying an average dividend yield of about 2.1 percent.

 

Top Ten for 2018

Bristol-Myers Squibb (BMY)

Bristol-Myers is a global biopharmaceutical company and a juggernaut in the area of immunotherapy. The company should benefit from continued growth of its primary drugs, Opdivo and Eliquis, as each have several years remaining on their respective patents. The company also has a promising pipeline of new drugs. Furthermore, an aging populating and increased spending on healthcare should act as tailwinds well into the future for the company. BMY has a strong 'A' rated balance sheet which gives the company the flexibility to make acquisitions to expand its revenue base over time.

We expect sustained double-digit earnings growth over the next 5 years, and this growth should not be particularly economically sensitive. The stock trades at 19 times the consensus for calendar year 2018 earnings per share, which represents a slight premium to the S&P 500. In addition, the stock offers a 2.6 percent dividend which should also grow over time.

ExxonMobil (XOM)

ExxonMobil is an integrated oil company. Its business starts with the exploration and production of crude oil and natural gas and then moves to the production of petroleum products, and finally to the transportation and sale of crude oil, natural gas and petroleum products.

The stock performance has lagged the broader S&P 500 by a significant percentage despite improving commodity prices. The company has historically generated strong returns on average capital employed through its relatively low exploration and development costs and superior project management. This point is often lost on investors chasing shale companies. Many that claim to be profitably drilling for oil in the US are only counting the cost to produce oil and exclude the cost of acquiring and developing the land.

The reset in commodity prices has forced companies to find ways to live within their cash flow, and ExxonMobil reached free cash flow neutrality (cash from operations covers capital expenditures, dividends, and any share repurchases) in 2017. Additionally, the company may benefit from policy changes that open more drilling areas or improve relations with Russia. The stock trades at 20 times estimated calendar year 2018 earnings per share. The stock also offers a 3.7 percent dividend yield.

FedEx (FDX)

FedEx has made great strikes in restructuring its Express unit to reflect changing customer preference away from expensive overnight air deliveries and toward more economical Ground deliveries. At the same time, the company has been investing aggressively in its Ground network, enabling it to grow that business at very rapid rates in recent years. Meanwhile, the company is in the process of integrating its largest-ever acquisition – a $4.8 billion deal to acquire TNT Express, which will vastly expand the company's presense and scale in Europe and create big opportunities for expense and revenue synergies.

Within its three major business segments – Express, Ground and Freight – the company has proven extremely adept at managing package volumes and yields to optimize profits and returns rather than focusing simply on yield, package volume or revenue maximization. This expertise, along with a vast delivery network that has taken 40 years to establish, ensures that FedEx can grow profitability even in the event that an aggressive new competitor (Amazon.com) seeks to participate in the massive growth potential of e-commerce. The stock trades at just 17 times the consensus estimate for calendar year 2018 earnings per share, which is a significant discount to both UPS and the S&P 500. The yield is 0.8 percent.

Goldman Sachs (GS)

Goldman Sachs is arguably the premier global investment bank, with consistently high revenue share in equity offerings and mergers & acquisitions, as well as a growing presence in fixed income. However, the company's trading arm, which typically accounts for an outsized 40 percent-50 percent of total company revenue, has been beset by low market volatility and heightened regulatory scrutiny following the passage of the Dodd-Frank Act in 2010. As a consequence of these pressures, the company's returns on equity have struggled to cover its cost of capital in recent years.

Looking forward, we expect the environment to improve. The Trump administration is actively working to reduce the regulatory burden on financial institutions, to include possible liberalization in the Volcker Rule (which restricts covered institutions from making proprietary investments) as well as liberalization in the capital and liquidity requirements that have resulted in depressed returns on equity.

At the same time, we believe that the recent lack of market volatility reflects a complacency that could be long in the tooth. Finally, the company is working to aggressively diversify its revenue base away from trading operations. At current levels, the stock is trading at just 1.3x book value, which would suggest that the low current ROE's will persist. As such, we think there is solid upside in the event that ROE's improve.

Medtronic (MDT)

Medtronic is a diversified global medical-technology company that operates through four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group, and Diabetes Group. With sales in over 120 countries, the company has geographical scale that is hard to duplicate.

MDT has faced a variety of headwinds in 2017, including natural disasters and IT disruptions, but we expect its new product cycle to drive top-line growth in 2018. Moreover, management has cost-saving initiatives in place that will help boost the bottom line.

The stock trades at just 16 times calendar year 2018 earnings per share, which represents a discount to both its peer group and the S&P 500. We view this stock as an attractive holding for long-term investors, especially given that we believe earnings should continue to grow in a down market. The company also offers a 2.2 percent dividend.

Microsoft (MSFT)

Microsoft is one of the largest technology companies in the world. It has successfully pivoted from a Windows PC-first world to the cloud where its focus on productivity and business processes is paying dividends.

As part of this change in focus, the company has moved from one-time licensing fees (the customer owns the software) to subscription-based sales which, for a monthly fee, allows customers to always have the latest version of the software. This transition negatively impacted revenues and cash flow over the last couple of years.

However, cash flows reached an inflection point in 2017, and the subscription base is now large enough to more than make up for the lost up-front cash generated under the one-time licensing model. We believe the company can grow free cash flow by double digits over the next few years which should support its valuation. The stock trades at 24 times the calendar year 2018 earnings per share estimate with a free cash flow yield north of 5 percent.

Ross Stores (ROST)

Ross Stores operates in the off-price channel, which has been one of the few bright spots in the retail sector over the past couple of years. As many department stores have struggled and closed stores, ROST is expanding its 1,627 store base at 6 percent per year, and management sees potential for 2,500 stores over the long-term.

Unlike most specialty retailers and department stores, ROST does not require fashion or product innovation to drive profits. Instead, access to inventory and quick turnover of merchandise drives traffic, which grows sales and allows the company to leverage operating costs. They are able to purchase inventory at a 20 percent-60 percent discount with the vast majority coming from manufacturers that have over-produced or had orders cancelled.

All of this leads to a "treasure-hunt" experience for customers that is difficult to replicate in an online setting, and this drives loyalty and repeat visits. ROST has only failed to grow earnings per share in 3 years since 1988 and their ability to grow earnings during the last 2 recessions shows that the company has historically been less susceptible to a market downturn.

ROST trades at 22 times on a calendar year 2018 basis which represents a premium to both peers and the S&P 500. Having said this, we think this stock deserves the higher valuation given its strong cash flow generation, resilient balance sheet, and ability to generate double digit earnings per share growth. The dividend is 0.8 percent.

Schlumberger (SLB)

Schlumberger is the world's premier oil services company providing the broadest range of services to companies in the oil and gas exploration and production business. We believe the company is ideally positioned to benefit from higher energy prices and increasing service intensity in the exploration and production of oil and gas.

This company has less exposure than peers to the more volatile North American market and more exposure to international markets, which tend to have longer and steadier cycles. International activity levels are near a bottom. Additionally, the company has spent the past couple of years streamlining its operations to improve efficiency.

If management's claims are correct that pricing improvements can drive 65 percent incremental margins ($0.65 of operating earnings on each $1 increase in revenue), we estimate that the company could reach its peak profit level by recovering just half of the revenue decline witnessed since oil prices reached a top in the summer of 2014. The shares trade at 29 times the consensus estimate for calendar year 2018 earnings per share with tremendous earnings recovery potential should energy prices remain stable or move higher.

Starbucks (SBUX)

Starbucks is the premier roaster, marketer and retailer of specialty coffees in the world, with over 27,339 stores in 75 countries. Following several years of very strong earnings growth, the stock has been flat over the past 2+ years due mostly to a deceleration in same-store sales growth to the low-single digits from the mid- to high-single digits it had been reporting for years. Management has attributed the deceleration to both a difficult consumer/retail backdrop as well strong customer acceptance of the company's new mobile order & pay solution, which has caused a bottleneck in filling customer orders in a timely fashion.

We think this is a high-class problem, and that this temporary setback creates an opportunity for growth-oriented investors willing to be patient. The company's recently revised long-term growth algorithm calls for 12 percent+ annual earnings per share growth driven by high single-digit revenue growth, 3-5 percent global same-store sales growth, and annual returns on invested capital of at least 25 percent.

We also anticipate that the company can continue growing its global store base by 7 percent-8 percent annually, driven by outsized growth from relatively under penetrated China. Recent sizeable investments in new platforms, products, people and technologies should help enable success in hitting these targets. The stock trades at a 24 times the consensus for calendar year 2018 earnings per share, which is a discount to similar companies. The dividend is 2.1 percent.

United Technologies (UTX)

United Technologies is a diversified industrial company that provides products and services to the building systems and aerospace industries worldwide. The company's aerospace segments target both commercial and government (including both defense and space) customers.

The company has an enviable long-term track record of financial performance, with strong double-digit earnings per share growth, outstanding cash generation, and a rock-solid balance sheet. However, recent performance has been held back by development costs for the company's ground-breaking new geared turbofan (GTF) jet engine as well as increasing competition and pricing pressure in Europe and China for Otis elevators (both equipment and service).

We think the company is taking the appropriate action to improve performance in these two areas. Once through the current investment phase, we think the company can ultimately return to sustainable double-digit earnings per share growth. Based on those expectations, we continue to believe the company offers strong value for long-term investors, trading at less than 19 times estimated calendar year 2018 earnings per share – roughly in line with the overall market. In addition, the current dividend yield is an attractive 2.2 percent.

MORE WILL UPDATE SOON!!

3 Top Oil Stocks to Buy in January

After a sharp and painful downturn, oil prices spent the vast majority of 2017 above $50 per barrel. And over the past six months, prices have steadily increased, to the point where Brent crude is getting close to $70. That's a level we haven't seen since 2014. And while there's some risk -- and even some expectation -- that higher production in 2018 will bring prices back down, oil companies are able to make money at far lower prices than they could even two or three years ago. 

Even better for investors, the market still hasn't come back for a lot of solid oil stocks. Our contributing investors particularly like Transocean LTD (NYSE:RIG), Hess Corp. (NYSE:HES), and Royal Dutch Shell plc (ADR) (NYSE:RDS-A)(NYSE:RDS-B), and think they're worthy investments to start 2018. 

A best-in-class operator trading at fire-sale prices

Jason Hall (Transocean): Since 2014, spending on offshore oil and gas investments has fallen every year. Essentially, every drilling contractor has been forced to scrap and idle vessels to cut costs, and competition for the trickle of new contracts awarded has been fierce, driving dayrates down substantially. This put several big drillers out of business, several more in bankruptcy even now, and saw a significant amount of consolidation, as companies went into survival mode. 

This destroyed billions of dollars in wealth, but has also created wonderful opportunities. Right now, Transocean strikes me as an excellent risk-reward investment. Since the oil-price peak in 2014, Transocean has cut its debt and liabilities more than 30%, cut expenses, cleaned up its fleet, and maintained a strong cash hoard to support any cash-flow shortfalls.

This also gave management the ability to act quickly if the right opportunity emerged. That opportunity emerged last year, when Transocean acquired Songa Offshore and its high-spec fleet that already has more than $4 billion in backlog contracts. 

IMAGE SOURCE: GETTY IMAGES.

As we enter into 2018, the offshore market has started to thaw, and Transocean is leaner than it was at the outset of the downturn, and with a better fleet. It's also far cheaper, with shares trading for 36% of book value. For context, Transocean traded for 1.2 times and higher for much of the past decade -- 3 1/2 times  higher than the current valuation. If offshore shows even minimal spending growth from here, Transocean is primed to be a steal. 

A turnaround play that's already turning

John Bromels (Hess) With oil prices currently above the $60/barrel mark, there are lots of opportunities for outperformance among oil companies. The problem is, the market has already caught on and has bid up the shares of many of 2017's biggest losers in anticipation of a strong 2018. Luckily for investors, there still may be time to pick up some of these underappreciated gems -- like Hess.

Hess is a bit of a hidden gem among independent oil and gas exploration and production companies. While it went into debt during the oil-price slump of 2014 -- along with practically all of its peers -- the company has kept its debt load manageable, with a debt-to-capital ratio of 33.8%, among the lowest in its peer group. Hess also has $2.5 billion in cash on hand to fund its growth plans, which include embarking on a promising offshore joint venture with ExxonMobil in Guyana, and adding rigs to its leading position in the Bakken Shale.

IMAGE SOURCE: GETTY IMAGES.

In spite of all this, Hess's shares fell 23.8% in 2017. And even since oil prices started to rise about six months ago, the company's stock has lagged the performance of its peer group -- as measured by the SPDR S&P 500 Oil & Gas Exploration & Production ETF. But all of that's starting to change. Hess's shares have already jumped 10% this year. That makes January a great time to buy into this surprisingly stable oil company. 

Re-positioned and poised to perform

Tyler Crowe (Royal Dutch Shell): It wasn't that long ago that Shell looked like a questionable investment. After acquiring BG Group back in 2015, the company was undergoing a complete corporate restructuring that involved $30 billion in asset sales. For anyone looking at the situation at the time, it was hard to say exactly what kind of performance an investor could expect when so much of the company's future depended on how that restructuring played out.

Today, though, that corporate shakeup is nearly complete, and the company looks like a much stronger company than it has in decades. CEO Ben van Beurden has transformed the company from one that typically lagged its peers in terms of returns on capital employed to a business geared toward consistent double-digit returns and generating gobs of free cash flow.

It hasn't quite reached those levels of return just yet. With international oil prices around $65 a barrel today, there's a good chance we could see those kinds of returns sooner rather than later. 

On top of that, it looks like Shell's stock still is trading at a reasonable valuation. When you combine all of these elements together, it would appear that Shell is the best buy among the integrated oil and gas majors. If you're looking for oil stocks in 2018, Royal Dutch Shell could be a good place to start.

MORE WILL UPDATE SOON!!

3 Top Tech Stocks to Buy in January

Technology stocks performed very well in 2017, with the Nasdaq 100 index (which tracks tech stocks) gaining more than 37% over the year. But that doesn't mean tech stocks are finished growing. If you're looking for long-term tech investments, you can still find strong tech companies that should leave you looking back on 2018 with delight.

We asked three Motley Fool contributors what tech stocks are looking good in January, and they came back with Etsy (NASDAQ:ETSY), Square (NYSE:SQ), and Shopify (NYSE:SHOP). 

 

An e-commerce site ready for its closeup

Jeremy Bowman (Etsy): Crafty online marketplace Etsy struggled through 2017. The company experienced two waves of layoffs and a change in its CEO after activist investors sensed the need for a shakeup. The moves seem to have worked, as the stock has risen 82% since May when activist investors like Black-and-White Capital first acquired a stake.   

But there's good reason to think that the stock could continue moving higher through January in anticipation of the company's fourth-quarter earnings report. The holiday season is generally a bonanza for retailers, as sales and profits surge in the weeks before Christmas, but Etsy has mostly missed out on the party. While sales on the platfrom do rise in the fourth quarter, it doesn't get the same spike that other retailers do, which is surprising considering many of the wares on the site are perfect for gifts.

New CEO Josh Silverman spotlighted this as a problem in the company's most recent earnings report, saying that historically shopping on the site had fallen off in Mid-December, a time when it usually peaks at other retailers, especially online retailers, which help consumers save time in the last-minute crunch of Christmas shopping. Shoppers didn't think Etsy could compete with discounts or fast shipping.

This year the company has provided tools for its merchants to help shoppers find gifts or items on sale and get fast or free delivery. We won't know how Etsy fared until the company reports earnings in February, but we do know that holiday sales experienced their biggest spike since 2011 and that online sales were up 18% during the period, according to Mastercard'sShopperTrak.

That's a bullish sign for Etsy to top estimates in the key holiday-quarter report coming up.

Hip to be square

Todd Campbell (Square): A financial company with a technology kicker, Square is my top technology stock to buy this month.

Square's hardware and software solutions connect merchants to buyers at craft shows, retail stores, and online, and its agnostic approach means it can process payments regardless of whether they're made by tap, dip, or swipe.

Square's APIs allow sellers to integrate Square with their other business systems, and Square's software allows them to track their sales from any device, anywhere, at any time. According to CEO Jack Dorsey (who, by the way, is also Twitter's CEO and a Bitcoin investor), Square-connected apps have been built for "everything from tea shops to taxis."

Greater integration with other business software solutions, such as SAP Business One, allows Square to compete for bigger, revenue-friendly accounts. E-commerce, invoicing, and instant cash connect Square more deeply with its merchants while providing it with a bigger share of their sales. For example, Square gets a flat 2.5% of sales when its reader is connected to a merchant's device, like a tablet, but it collects a 2.9% rate, plus a $0.30 per transaction fee, for e-commerce transactions, and a 3.5% rate, plus a $0.15 per transaction fee, for virtual terminal and keyed-in transactions.

Sales are growing at an over-30% clip, and I think buying shares ahead of fourth quarter earnings in February makes sense. A larger customer base and a strong holiday season could allow Square to overdeliver on its forecasted net revenue of between $585 million to $595 million and adjusted EPS of between $0.05 to $0.06. Still looking for reasons to add Square to your portfolio? Consider that Dorsey's well-versed in cryptocurrency and blockchain, and his plans likely include positioning Square to benefit from both.

A strong e-commerce play 

Chris Neiger (Shopify): E-commerce is hardly a new investing idea, but unlike the old days where investors were essentially focused on big players like Amazon.com, there are now plenty of smaller players that are making big waves in this space. Shopify is a case in point.

Shopify provides cloud-based platform software and services to small, medium, and large businesses, and its wide array of offerings and tiered pricing have propelled the company from a niche player into a merchant platform powerhouse.

Merchants can use Shopify's platform for everything from online and mobile payments to shipping orders and social media management. The tiniest small business can tap into Shopify's services for as little as $9 per month, but its largest customers shell out up to $40,000 a month for the company's top-shelf Shopify Plus services. The company is doing a fantastic job winning bigger customers, and as a result Shopify Plus accounted for 20% of monthly recurring revenue (MRR) in the third quarter 2017. 

Companies big and small are seeing the benefits of Shopify's platform, and since 2015 the company has grown its total subscribers from 200,000 merchants to more than 500,000. Shopify's top line is growing quickly as well, with sales in the third quarter growing by 72% year over year and transactions conducted through the company's platform increasing by 69%, to $6.4 billion.

Investors should know that the company isn't profitable right now, but the expansion of the e-commerce market should help the company to continue to grow. U.S. sales from e-commerce are expected to hit $638 billion four years from now, up from $409 billion last year.

Shopify's shares have already jumped 138% over the past 12 months, but that doesn't mean the stock has finished its run. The company needs to continue releasing in-demand features for its platform (which it's already doing) and grow its merchant customer base and earn more from each of its customers (which it's also doing) -- and if it keeps that up, then investors will be pleased they added this stock to their portfolio now instead of waiting on the sidelines.