What Smart Investors Use to Spot Explosive Stocks Before Wall Street Notices

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Billy Duberstein, The Motley FoolMon, November 3, 2025 at 2:59 PM GMT+1 7 min readIdentifying an explosive stock before the market can set you up for life.Just look at the past performances of Nvidia, Amazon, or Warren Buffett's Coca-Cola investment.These stocks shared three key attributes which are the keys to finding the next big thing.10 stocks we like better than Amazon ›Want to spot the next Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), or Coca-Cola (NYSE: KO)?These stocks have minted fortunes for investors who had invested early on, showing off the true miracle compound earnings can achieve for one's long-term financial independence.The rub is that while these long-term winners seem obvious in retrospect, not many investors knew early on that these stocks would grow into the 100-baggers they eventually became.Yet while each of these prior cases is slightly different, all have three main things in common. If you find an under-the-radar stock with these attributes today, you have pretty good odds of buying the next big thing.Image source: Getty Images.Outsized stock performance comes from outsized earnings growth over the long-term, and especially outsized earnings growth that comes at a high return on invested capital.High ROIC and earnings growth generally mean a company has some sort of extraordinary advantage over competitors, or has built a business so formidable that new competitors won't even try to compete.Once a formidable economic moat is built and earnings take off, many investors tend to notice. But if a savvy investor can see an emerging moat as it's being built, and invests before the market catches on, that could be a recipe for massive long-term gains.Some examples from the past include Nvidia (NASDAQ: NVDA) building up its CUDA software stack, which enabled its graphics chips to be used for parallel processing for big data and artificial intelligence applications.Nvidia began building CUDA in 2006, and while the company achieved some AI success in the following years, the advent of generative AI and ChatGPT in 2022 caused Nvidia's sales to take off. But if an investor had identified this CUDA software moat early on and held Nvidia for the long-term, you would have made a tremendous amount of money.Another example is Amazon (NASDAQ: AMZN). As an early leader in e-commerce, Amazon traditionally eschewed near-term profits to continue investing in its massive distribution and fulfillment network. The investment in its delivery network and expanding assortment of items took tremendous investment over many years. But flash forward to today, and Amazon's ability to deliver items within one or two days is unmatched. If anyone attempted to compete by building a similar network, it would similarly take that amount of money to build. That has thus far deterred many serious competitors.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,760.00 -41.75 (-0.61%)Dow Futures47,115.00 -99.00 (-0.21%)Nasdaq Futures25,337.75 -237.50 (-0.93%)Russell 2000 Futures2,425.30 -12.20 (-0.50%)VIX19.00 +1.83 (+10.66%)Gold3,945.00 -15.50 (-0.39%)PortfolioSign in to access your portfolioSign inTop gainersHTZ Hertz Global Holdings, Inc. 6.73 +1.79 (+36.23%)XMTR Xometry, Inc. 62.62 +14.05 (+28.93%)PAY Paymentus Holdings, Inc. 36.10 +7.49 (+26.18%)MTSR Metsera, Inc. 73.18 +12.45 (+20.50%)SANM Sanmina Corporation 163.58 +23.24 (+16.56%)Top losersDGNX Diginex Limited 18.25 -5.38 (-22.77%)NCLH Norwegian Cruise Line Holdings Ltd. 18.79 -3.39 (-15.28%)NVTS Navitas Semiconductor Corporation 10.46 -1.79 (-14.61%)ZTS Zoetis Inc. 124.46 -19.89 (-13.78%)WRD WeRide Inc. 9.41 -1.50 (-13.72%)Most activeNVDA NVIDIA Corporation 198.69 -8.19 (-3.96%)PFE Pfizer Inc. 24.30 -0.36 (-1.46%)HTZ Hertz Global Holdings, Inc. 6.73 +1.79 (+36.23%)PLTR Palantir Technologies Inc. 190.74 -16.44 (-7.94%)GRAB Grab Holdings Limited 5.79 -0.28 (-4.70%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 101,019.83 -5,870.41 (-5.49%)AMD Advanced Micro Devices, Inc. 250.05 -9.60 (-3.70%)SMCI Super Micro Computer, Inc. 47.40 -3.35 (-6.60%)ETH-USD Ethereum USD 3,255.14 -384.76 (-10.57%)UPST Upstart Holdings, Inc. 46.24 -1.30 (-2.73%)Top economic events