F2 Stocks That Could Be Ten-Baggers Before 2030

Two Canadian growth stocks – WELL Health Technologies (TSX:WELL) and Constellation Software (TSX:CSU) – could deliver tenfold returns.

| More on:
consider the options

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

A tenfold return in less than a decade is the gold standard for growth investing. A massive return like that requires a compounded annual growth rate of 26% or more. Very few companies ever achieve this level. Even fewer sustain it. 

However, there are two Canadian stocks I believe could maintain this pace for the foreseeable future. Here are the potential ten-baggers that should be on your radar. 

Growth stock 1

WELL Health Technologies (TSX:WELL) is an obvious candidate for hyper growth stock. In fact, the stock has already delivered a tenfold return over the past two years. Since going public in 2016, the stock has delivered a jaw-dropping 6,500% return. 

This year, the company is rolling out its services in the United States. That’s the largest healthcare market in the world – worth an estimated US$8.5 trillion or C$10 trillion in annual revenue. It’s an astoundingly large market with plenty of space for telehealth upstarts like WELL Health to expand into. 

Over the past year, the company registered annual growth rates of over 75%. Not to mention that new service revenue is growing much faster. Over the past year, software service revenue expanded 400%. That’s well above our 26% threshold, which means WELL Health could easily deliver a tenfold return and then some over the long-term. This growth stock should certainly be on your radar. 

Growth stock 2

Constellation Software (TSX:CSU) is one of the most robust and reliable growth stocks on the market. It’s easy to dismiss this as a growth story that’s coming to an end, but it’s just getting started. 

Investors who bet on Constellation in mid-2013 have experienced a tenfold return over the past eight years. Since 2006, the stock has managed to deliver 9,850%, one of the best performances on the Toronto Stock Exchange over that period. 

However, all of the company’s growth has been driven by acquisitions. The company has acquired and integrated over 300 small and mid-size software firms over the course of its existence. This year, the team decided to set broader ambitions. 

Starting in 2021, Constellation will look beyond its traditional software market for acquisition targets. It will also aim for bigger targets than it did previously. This means investors should expect some surprising and headline-grabbing mergers in the near-future. 

If future acquisitions are anywhere as successful as previous ones, Constellation could easily deliver yet another tenfold return before the end of the decade. Even if growth falls short of expectations, the company is profitable enough to mitigate downside risks for investors.  That’s what makes this one of my favourite Canadian growth stocks. 

Bottom line

Companies growing at 26% or more a year can deliver a tenfold return in less than a decade. Two Canadian growth stocks – WELL Health Technologies and Constellation Software – are already beating this benchmark and could easily deliver a 1,000% return before 2030. 

 

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 Vishesh Raisinghani owns shares of WELL Health Technologies. The Motley Fool owns shares of and recommends Constellation Software.

More on Tech Stocks

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

2 Beaten-Down Growth Stocks You’ll Be Happy You Own in 2032

Buying these oversold TSX stocks could make you rich by 2032.

Read more »

shopping online, e-commerce
Tech Stocks

Shopify Stock: Could it Reach $100 in 2022?

Shopify stock (TSX:SHOP)(NYSE:SHOP) has seen a huge uptick in daily trading volume, with shares up 28% in the last month.

Read more »

money cash dividends
Tech Stocks

Got $1,000? Buy These 4 TSX Stocks in Bulk!

These four TSX stocks are rebounding already, and offer a substantial opportunity for long-term Motley Fool investors.

Read more »

A stock price graph showing growth over time
Tech Stocks

3 Cheap Growth Stocks to Buy Right Now

Given their growth prospects and cheaper valuations, these three TSX stocks could deliver superior returns in the long run.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Stocks I’m Buying During a Tech Stock Correction

Tech stocks like Constellation Software (TSX:CSU) should be on your radar.

Read more »

financial freedom sign
Tech Stocks

$5,000 Invested in These 3 Stocks Could Make You Rich Over the Next 20 Years

Are you looking for stocks that could carry your portfolio over the next 20 years? Here are three top picks!

Read more »

potted green plant grows up in arrow shape
Tech Stocks

This Growth Stock Rallied 20% Yesterday, But it’s Still Cheap!

This growth stock is a great value. The 20% rally indicates the company has executed well and has potential for…

Read more »

Target. Stand out from the crowd
Tech Stocks

Down 70%, This Could Be the Best Stock-Split Stock in Canada to Buy and Hold Forever

This is arguably be the best stock-split stock to buy right now, as it has the potential to multiply your…

Read more »