For years, 24/7 Wall St. has covered stocks under $10. While not all were home runs, many savvy investors with foresight and patience made millions on stocks that traded in the single digits. We found a company that had traded in the single digits for years and has exploded higher since 2020.

Typically, when modern-day investors think of hardware, servers, computers, and tech items of the same ilk, they usually come to mind. For older investors, hardware can mean something different, like a hardware store selling everything from sprinklers to tools to paint to a million other do-it-yourself items.

Many investors don’t realize that a long-term (say, ten years) investment in retail and commercial outlets can turn a sizable investment into a huge win, especially if that outfit becomes an exponential leader in construction in a booming part of the country.

That happened to savvy investors who invested $50,000 in Builders First Source Inc. (NASDAQ: BLDR) in 2014. The company and its subsidiaries manufacture and supply building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States.

The shares traded under the $10 level for years

From 2008 to 2015, the stock stayed below $10, and only in 2016 did it burst through $20.

Based in Texas, the company was in the right place

Located in the Dallas suburb of Irving, Texas, the stock exploded higher in 2020 as corporations and citizens looking for better tax treatment and opportunity poured into the Lone Star State, building on a trend that started in the 1990s.

Builders First Source consolidates the building supply business

Supplying items such as roof trusses, kitchen cabinets and countertops, and much more, the company became one of the top go-to leaders in the Texas construction arena.

The stock explodes higher starting in 2021

Trading at $40 in the summer of 2021, the shares toppled the $80 mark by the end of that year

After trading sideways for a year, the stocks parabolic move began in 2023

From the beginning of 2023, the shares went into overdrive, and amazingly, according to the Wall Street Journal, only Nvidia Inc. (NASDAQ: NVDA) and Meta Platforms Inc. (NASDAQ: META) outgained the stock’s stunning 142% gain over the last year.

Please show me the money

The stock traded between $8.05 in January 2014 and $6.98 in December 2014. So, let’s say an investor bought $50,000 worth at an average price of $7.50. That would equal $6,667 shares.

If that savvy investor sold all of the shares today at $210.50 (the current trading price as of this writing), it would equal a remarkable $1,403,404. Subtracting initial $50,000 purchase price would be an incredible long-term capital gain of $1,353,404.

 

 

 

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