Get Rich by 2025: 3 Hidden Growth Stocks to Hold Over the Next 5 Years

Tired of sluggish returns? This trio of stocks, including WSP Global (TSX:WSP), could give your portfolio the boost of growth it needs.

potted green plant grows up in arrow shape

Image source: Getty Images

Hi, Fools. I’m back to draw attention to three attractive growth stocks. Why? Because companies with rapidly growing revenue and earnings

As legendary investor Warren Buffett once said, “Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”

So, if you’re looking to boost your TFSA over the next five years, this is a good place to start. This trio of stocks is growing rapidly and is relatively unknown to many investors.

Logistical dream

Leading off our list is Descartes Systems Group, which has grown its EPS and revenue at a rate of 139% and 118%, respectively, over the past five years. Shares of the software technologist are up 46% over the past year.

Descartes’s growth should continue to be supported by a dominant position in the logistics software space, positive secular trends, and smart acquisitions. In the most recent quarter, income jumped 23% as revenue improved 19% to $83 million.

“Descartes continues to deliver predictable results in an increasingly unpredictable business environment,” said CEO Edward Ryan. “Our customers need access to timely, reliable data from multiple sources via a network to fuel decision-making tools that power their businesses.”

Descartes trades at a forward P/E of 36.

Global reach

Next up, we have WSP Global, which has grown its EPS and revenue at a rate of 167% and 202%, respectively, over the past five years. Shares of the professional services specialist have risen 36% over the past year.

WSP’s consistent growth over the past several years is underpinned by impressive scale, geographic reach, and hefty cash flows. In the most recent quarter, EPS clocked in at $0.95, as revenue improved 15% to $2.2 billion.

More importantly, WSP has generated trailing 12-month free cash flow of $424 million.

“We are pleased with our Q3 2019 performance, which following a slow start to the year in certain countries, demonstrates the resilience of our business model,” said CEO Alexandre L’Heureux.

WSP shares trade at a forward P/E of 25.

Seeing daylight

Rounding out our list is Badger Daylighting, which has delivered EPS and revenue growth of 30% and 59%, respectively, over the past five years. Shares of the excavation services specialist are down 27% over the past six months.

A lacklustre Q2 and weak Western oil activity have weighed heavily on the stock in recent months, but now might be a prime opportunity to pounce. In Badger’s Q3 results last month, net profit jumped to $26 million, as revenue of $183.7 million topped expectations by $34 million.

“2019 continues to be a year of executing on strategic initiatives, providing the operational and administrative scale to facilitate Badger’s ability to continue to grow its business and capture additional market share in a profitable manner,” said CEO Paul Vanderberg.

Badger shares trade at a forward P/E of 17.

The bottom line

There you have it, Fools: three attractive growth stocks for 2020.

They aren’t formal recommendations. Instead, view them as ideas worth further research. Even stocks with breakneck growth can crash hard if you don’t pay attention to valuation, so plenty of due diligence is still required.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned.   

More on Tech Stocks

man touches brain to show a good idea
Tech Stocks

Nvidia Stock Becomes World’s Most Valuable Company: Buy Now or Beware?

Nvidia (NASDAQ:NVDA) stock is now the world's highest valued company, with a market cap of US$3.34 trillion. So, is the…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run

Here's why Constellation Software (TSX:CSU) and Shopify (TSX:SHOP) are two top Canadian stocks long-term investors should consider.

Read more »

Wireless technology
Tech Stocks

Predictions for the Top Canadian Tech Stocks in June 2024

Whether it's the growth of artificial intelligence or e-commerce, these three tech stocks offer massive growth in June and beyond.

Read more »

Golden crown on a red velvet background
Dividend Stocks

These 5 Stocks Have Unstoppable Dividend Growth

These five stocks can form a diversified stock portfolio of dividend aristocrats from the TSX.

Read more »

Online shopping
Tech Stocks

Up 42% from 52-Week Lows, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock looks like one of Canada's best growth stocks. And right now, it looks like it's on sale,…

Read more »