At the Motley Fool, we are proponents of buying great companies for three to five years. In doing so, investors should be setting themselves up for success over the long run. Being disciplined and consistent in this type of investing is how anyone can build wealth and achieve financial freedom.
However, sometimes, stocks go up a lot more than you expect them to. In this article, I will discuss two companies I wrote about in June that have seen incredible growth since I first mentioned them.
An alternative financial company
One of the first companies I ever wrote about on the Motley Fool is goeasy (TSX:GSY). The company operates two business segments. The first is easyfinancial, which offers loans to subprime borrowers. Its second business segment is easyhome, which sells furniture and other durable home goods on a rent-to-own basis.
I chose this as an excellent company to consider for your portfolio, because I figured a lot of people would need loans, as a result of the pandemic. With banks being hesitant to provide loans during such an uncertain time, goeasy was in an excellent position to pick up the slack.
The company has since gone on to report record quarters throughout the entire year. In its Q3 earnings presentation, goeasy reported that the company’s loan portfolio stood at $1.18 billion. This represents a 14% increase compared to the same period last year. This translated to a quarterly revenue of about $162 million, good for a 4% increase year over year. Even more impressive was the company’s net income of $33 million. This represents a 67% increase year over year.
My first article on the company was published on June 1. On that day, goeasy stock closed at $52.95. Today, it trades 68% higher than that point. From its lowest point this year, goeasy stock is up nearly 300%. With the company remaining a small-cap stock (market cap of $1.3 billion), the upside that remains is still very attractive. goeasy could be a company to continue watching for the coming years.
A new contender in the enterprise training industry
The second company that has seen very impressive growth this year is Docebo (TSX:DCBO). It provides a cloud-based e-learning platform to enterprises. Relying on its proprietary artificial intelligence software, training managers can use the platform to better administer, monitor, and modify employee training exercises.
I chose this company as one to watch, because I believe the world has been shifting to a more digital setting. The COVID-19 pandemic has done nothing but emphasize the need for companies to embrace this shift and accelerate the adoption of new technology.
Docebo operates in a very competitive market, with companies such as Adobe and SAP providing their own LMS offerings. However, Docebo has done an exceptional job of making an impact within the industry. A much younger company than its peers, Docebo has already secured a partnership with Salesforce, which allows customers to use the Docebo app within Salesforce to better manage users, accounts, orders, and more.
The company has also managed to secure high-profile customers. Among its more than 2,000 global customers, Docebo has previously managed to attract Appian, Thomson Reuters, Uber, and Walmart among many others. In September, the company announced that it had reached a multi-year agreement with Amazon to power its AWS Training and Certification offerings globally. This speaks volumes of the confidence blue-chip companies have on Docebo’s platform.
I started writing on the Motley Fool at the end of May, this year. My original article covering Docebo published on June 5. On that day, Docebo stock closed at $26. Today, it trades about 150% higher! That happened a lot quicker than I expected, but the rise was not that surprising when looking at the big picture.
The Motley Fool is all about helping the everyday investor learn about ways they can build wealth, responsibly, over the long run. Looking for a quick buck here or there is not the intent. However, every so often, you are rewarded with some companies that do perform very well over the short term. Since June, goeasy (+68%) and Docebo (+150%) have done extraordinarily well. I believe this is still just the beginning for these two companies.
Worried you missed the boat with these two companies? Take a look at this stock before it's too late.
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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 Appian and Docebo Inc. David Gardner owns shares of Amazon. Tom Gardner owns shares of Appian and Salesforce.com. The Motley Fool owns shares of and recommends Adobe Systems, Amazon, Appian, and Salesforce.com. The Motley Fool recommends Uber Technologies and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon.