While plenty of stocks out there boast value, few can actually deliver. However, there are still lots of growth stocks out there if you know where to look. In fact, some of these stocks you’ll already have heard of, but are wary to buy. In that case, while i don’t blame you I urge you to look at the big picture. Long-term investment into these growth stocks could see massive returns in the next decade.
It continues to surprise me why investors don’t snatch up Cargojet Inc. (TSX:CJT) in bulk. The airline company has not only been untouched by COVID-19 when it comes to revenue, it’s soared to new heights. This is in part thanks to its recent partnership with Amazon, where the e-commerce giant may soon up its 9.9% stake to 14.9%!
With earnings coming out next week, it’s the perfect time to buy up this stock as an e-commerce buy and hold, especially with shares where they are. The company saw shares trade at $250 in the last year, but now have sunk to $187 as of writing. I wouldn’t be surprised if you see a massive boost with another strong earnings report. But definitely hold onto this stock as e-commerce continues to boom.
Shares are still up 73% in the last year and 781% in the last five years for a compound annual growth rate (CAGR) of 55%!
While Cargojet stock wasn’t really affected by the pandemic, WELL Health Technologies Corp. (TSX:WELL) certainly was, but not the way other businesses were. The company saw revenue soar as telehealth became a necessity. The company has now expanded through acquisition at a rapid pace, currently expanding into the United States on a massive scale. This should see revenue continue to explode in the next years to come.
Yet again, shares are incredibly cheap compared to the growth potential of this stock. Shares continue to trade at about per share. While that may be near all-time highs, I wouldn’t count on this stock dropping lower any time soon. This is the perfect buy and hold stock for long-term investors looking to take advantage of the shift to telehealth that’s likely to continue even after the pandemic is over.
Shares are up 378% in the last year, and 2,430% in the last three years. That’s a compound annual growth rate (CAGR) of 193% as of writing!
Finally, here is where things get tricky. On the one hand, Canopy Growth Corp. (TSX:WEED)(NYSE:CGC) has a lot of work to do. It’s swimming in debt and had to cut back dramatically from both the pandemic with production reaching a low point, and to prove to investors it could inch towards profit.
On the other hand, the bloody work is over and management is making serious moves because of the new United States President Joe Biden. Legalization looks like it could be in sight for the entire country. That’s exactly what Canopy has been waiting for. If you’re a long-term investor, then you should be drooling at today’s share price of $43 as of writing. U.S. legalization will eventually happen. When it does, Canopy Growth will become not only the largest producer in the world, but the largest producer and distributor in the largest cannabis market in the world.
So while shares are down 40% from all-time highs, shares are still up 62% this year alone and 1,378% in the last five years for a CAGR of 71%.
These hidden gems could be the growth stocks that take your portfolio over the top. What’s even better, each doesn’t involve the enormous risk that can come with many growth stocks. Instead, they are the perfect buy and hold option for long-term investors to look forward to returns for years.
Want even more options for HIGH GROWTH stocks? Check out this FREE list of three!
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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 Amy Legate-Wolfe owns shares of WELL, Canopy Growth, and CARGOJET INC. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and CARGOJET INC and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.