As a Foolish investor, you’re probably nothing more than annoyed by the non-stop talk about Bitcoin, cryptocurrencies, FOMO, and the return of reckless speculation. The Bitcoin bubble has inflated and burst many times over, and with no underlying value, Bitcoin is still looking like fool’s (that’s a lower-case ‘f’) gold.
If you’re hungry for big gains, you need to expand your time horizon beyond just a few weeks or months. You need to be thinking of holding your investment for a year at the minimum, but Foolish investors know that stocks become less risky as time goes on, so the best holding period ought to be counted in decades.
Consider Kinaxis (TSX:KXS), a “white-hot” tech stock that can scratch your long-term itch for growth. Unlike Bitcoin, the company will probably be in existence in a decade from now — unless it’s taken over, of course.
The developer of supply chain, sales, and operating solutions has hit a bit of road bump over the past year. In a prior piece, I noted that the “bar was set low” and that “large multinational deals” closing over the near term would be a boon for Kinaxis stock, which could see a reversal of momentum.
Supply chain management and the planning of day-to-day operations is a ridiculously expensive endeavour that causes SG&A expenses to prop up for companies that aren’t operating optimally. Indeed, a Kinaxis license pays for itself through the eyes of clients, and as fellow Fool Ambrose O’Callaghan noted, Kinaxis puts Canada on the map in terms of being a “global leader in AI-focused supply chain management.”
Over the past five years, Kinaxis has averaged nearly 20% in annual revenue growth. As the company continues to improve upon its offerings, I expect margins to prop up in conjunction with top-line growth.
After the company experienced a hiccup, the stock now trades at 50.5 times forward earnings and over 10 times book. Not cheap, but given the double-digit in top-line growth you’re getting, and the long growth runway, I’d say the price of admission remains attractive for value-conscious growth investors who have a time horizon of at least five years.
Kinaxis is a probable triple over the next five years, so forget Bitcoin. Kinaxis is your ticket to a sizeable nest egg!
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Joey Frenette has no position in any of the stocks mentioned. Kinaxis is a recommendation of Stock Advisor Canada.