Have $2,000? Here Are 2 Growth Stocks That Could Turn it Into $4,000

Growth stocks can double invested capital relatively quickly. These companies are usually asset-light and rapidly gaining market share in unimaginable huge industries. If you have $2,000, I would recommend focusing on two of the most exciting growth sectors of 2020: telehealth and spacetech. 

Telehealth growth stock

WELL Health Technologies (TSX: WELL) is my top growth stock pick for a few simple reasons. Firstly, it’s an underappreciated stock. The company’s market value is just $360 million. Meanwhile, the long-term market opportunity for telehealth and telemedicine could be worth over $1 trillion. 

In a recent interview with author Stephen Dubner (of Freakonomics fame), several medical practitioners said telehealth was clearly here to stay. Not only did it broaden the access to healthcare, but it also reduced costs for patients and improved results in certain time-critical situations. 

Telehealth has gained some traction this year, as everyone was confined to their homes. I believe diagnostics and consultations via texts or video chat will be a permanent fixture of our healthcare system, even after the pandemic is resolved. 

WELL Health is at the forefront of this revolution. The company’s VirtualClinic+ and digital platforms saw a 10-fold jump in usage during the lockdown. That puts it in a favourable position for long-term growth. The stock has already doubled year to date. I wouldn’t be surprised if it doubled again by the end of the year. 

Spacetech growth stock

Unlike WELL Health, Maxar Technologies (TSX: MAXR)(NYSE: MAXR) has been on a downward slope for years. Investors who bought the stock in 2015 have lost three-fourths of their capital by now. 

However, there are signs that the wealth destruction may be over. Maxar has offloaded some assets to tackle debt. It also moved its headquarters to the U.S. to win government contracts there. Now, the company’s finances seem to have stabilized. 

Meanwhile, the spacetech industry is rapidly expanding. The sector was worth US$360 billion in 2018 and is projected to grow at a compounded rate of 5.6% to value US$558 billion by 2026. By 2030, the sector could be worth over $1 trillion. 

Maxar is already an established player in the sector. It has several years of experience working with corporate clients and government institutions. If it can capture even a fraction of this expanding market, the company’s market value could surge. At the moment, the firm is worth just shy of US$1 billion. 

Hedge fund legend Michael Burry made a serious bet on Maxar this year. That vote of confidence makes the growth stock even more compelling.

Bottom line

Turning $2,000 into $4,000 is far from easy. Most stocks tend to deliver a 6% annual return. At that pace, you could double your money in 12 years. However, growth stocks could deliver this return far quicker. 

This year alone, several tech and growth stocks have doubled. Investors in cybersecurity, e-commerce, enterprise software, and biotech have all seen massive wealth creation. However, I believe the spacetech and telehealth sectors are the most exciting sectors for the future. 

With that in mind, my top growth stock picks are Maxar and WELL Health. Keep an eye on them.