2 Unstoppable Growth Stocks to Buy With $200

It is generally expected that growth stocks be more expensive than value stocks. However, which growth companies can be bought by those with less capital?

| More on:
Where to Invest?

Image source: Getty Images

Growth stocks are very exciting companies to hold in your portfolio. Unfortunately, many of these companies seem to feature very expensive stock prices. For example, Constellation Software trades above $1500 per share and Amazon over $3200 USD.

While it is understood that companies should not be judged by their prices, rather by valuation and prospects, it is still unappealing for smaller investors to pour so much money into one company at one time. Luckily, if you look in the right places, you will be able to find excellent growth companies that do not have such expensive prices.

The health care industry is changing rapidly

Investors with smaller amounts of capital should consider an investment in WELL Health Technologies (TSX:WELL). The company is focused on improving Canadian health care by providing disruptive services and products.

WELL Health has primarily grown via acquisitions. As of its latest earnings report, the company operates wholly owned 19 clinics. In addition to its health clinics, WELL owns a portfolio of digital assets. These include its electronic medical records software and a digital health app marketplace for EMR users.

WELL Health’s rise to prominence over the past year has been very popular among Canadian investors. For those that are unfamiliar, WELL Health was a very promising company during its time being listed on the TSX Venture Exchange (TSXV). In 2018 and 2019, the company was included in the TSX Venture 50, a list of the 50 best performers on the exchange. In early 2020, WELL Health graduated from the TSXV to the TSX.

Since going public on the larger Canadian exchange, WELL has seen its stock skyrocket. Year-to-date, WELL stock has gained nearly 450% as of this writing. That increase in stock price places the company among the leaders in the Canadian market over that time period.

Although its stock price has increased nearly 500% this year, WELL Health still trades below $10. More important, the company has only a $1.21 billion market cap, which indicates that it may still have a long growth runway ahead.

Digitization is inevitable

Another company that investors can grab at an inexpensive price is Docebo (TSX:DCBO). I have been covering this company since early June, and I remain as bullish as ever. The company provides enterprises with an e-learning platform that uses the company’s proprietary artificial intelligence software. Using this platform, training managers can more easily create, administer, and monitor employee training programs.

Docebo is a company that checks off many boxes in my investment checklist. The company features a large amount of insider ownership, indicating that its leadership is willing to be rewarded according to the company’s performance. Docebo also has a very high amount of recurring revenue, which speaks to the sustainability of its revenue sources.

Finally, as the subheader suggests, digitization is inevitable. Companies are beginning to adapt their software to suit modern environments. Docebo is a leader in its industry and should experience tremendous growth moving forward.

The company went public in late 2019. Since then, its trajectory has been mostly upward as investors have realized the tremendous opportunity that presents itself with this company. Year to date, Docebo stock has returned over 200% to investors. Currently at a valuation of about $1.57 billion, Docebo can still potentially provide 10 times returns form here.

Foolish takeaway

Although growth stocks can be more expensive than value stocks, there are definitely options available for investors that have smaller amounts of capital. WELL Health currently trades below $10 and Docebo just over $50, as of this writing. In both cases, WELL Health and Docebo trade under a market cap of $1.6 billion. If these companies continue to execute as well as they have so far, investors may be generously rewarded in the future.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of WELL and Docebo Inc. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and Constellation Software and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon.

More on Tech Stocks

shopping online, e-commerce
Tech Stocks

Young Investors: Shopify (TSX:SHOP) Stock May Finally Be Worth Buying

Shopify (TSX:SHOP)(NYSE:SHOP) stock is attempting to stage a bottom, but should investors be buyers amid the market chaos?

Read more »

Tech Stocks

How to Easily Turn a $25,000 RRSP Into $250,000

You can hold quality growth stocks such as Shopify in your RRSP and benefit from market-beating gains in the long…

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Kinaxis vs. Descartes: Which Is the Better Tech Stock to Buy?

Top tech stocks like Kinaxis Inc. (TSX:KXS) and Descartes Systems Group Inc. (TSX:DSG)(NASDAQ:DSGX) are worth your attention right now.

Read more »

tech and analysis
Tech Stocks

2 Top Tech Stocks Investors Should Consider Buying Right Now

Tech stocks such as Sierra Wireless and Open Text are well positioned to deliver outsized gains to investors in 2022…

Read more »

cup of cappuccino with a sad face
Tech Stocks

Shopify (TSX:SHOP) Stock Has Been a Bloodbath

The share price of the TSX’s tech phenomenon could still plunge if the bloodbath continues due to the slowdown of…

Read more »

sad concerned deep in thought
Tech Stocks

Tech Stocks Crumble: Is it Time to Buy?

Shopify is coming down from its pandemic highs as its business falters, but BlackBerry's business is just gaining steam.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Tech Stocks

This 1 High-Growth Stock Just Got Irresistible

Despite a challenging macro environment, Lightspeed continues to post strong growth, which could help this high-growth stock stage a sharp…

Read more »

exchange-traded funds
Tech Stocks

Buy the Dip: 3 ETFs That Have Taken a Beating in 2022

Three prominent TSX ETFs trades at bargain prices in 2022 because of their significant exposure to the slumping technology sector.

Read more »