2 ASX stocks that could 10x your $5,000

Analysts think these shares have bright futures and have put buy ratings on them.

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Key points

  • Siteminder impresses with its global cloud platform for hotel bookings, offering scalable, predictable income through a robust recurring revenue model, and continually enhancing its offerings to elevate user engagement and revenue.
  • Temple & Webster has capitalised on the online shopping trend, standing out with its strong business model and strategic expansion into new product categories, which positions it well for sustained, profitable growth.
  • With outperform ratings from Macquarie, both companies are seen as having significant potential for long-term growth, appealing to investors seeking exponential returns.

Every investor dreams of finding the next big winner. That rare company capable of turning a small investment into something extraordinary.

But the truth is, 10x returns don't happen overnight. They take time, patience, and the right kind of business: one with a scalable model, strong leadership, and a long runway for growth.

While no outcome is guaranteed, here are two ASX stocks that stand out as having the potential to multiply your money over the coming years.

Siteminder Ltd (ASX: SDR)

If you have ever booked a hotel online, chances are you've indirectly used Siteminder. The Sydney-based technology company operates a leading cloud platform that connects hotels to booking websites, automating everything from reservations to payments and room availability.

Siteminder's software is used by tens of thousands of hotels in more than 150 countries, making it one of the true global tech success stories on the ASX. Its recurring revenue model and strong customer retention rates give it predictable, scalable income. These are two essential ingredients for compounding growth.

The company continues to expand its product suite, adding payment processing, business intelligence, and channel management features. These innovations are likely to deepen customer relationships and increase revenue per user over time.

Macquarie is bullish on the company's outlook. So much so, it recently put an outperform rating and $8.55 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX stock that could have 10x potential is Temple & Webster. It has quietly become Australia's go-to destination for online furniture and homewares, and its long-term potential remains enormous.

As consumers increasingly prefer to shop from home, Temple & Webster's online-only business model gives it a powerful cost advantage over traditional retailers. The company's deep product range, fast delivery, and design inspiration tools continue to attract new customers and drive repeat sales.

Management has executed exceptionally well, expanding into new categories like home improvement, while investing in AI-driven personalisation and private-label products. These strategic moves are boosting margins and setting the business up for years of profitable growth.

Another positive is that ecommerce penetration in homewares remains relatively low in Australia compared to other Western markets and verticals. This leaves Temple & Webster with a very long runway for growth over the next decade and beyond.

The team at Macquarie is also bullish on this one. It recently put an outperform rating and $31.30 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, SiteMinder, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and SiteMinder. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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