Unpredictability in the market is once again coming into view for investors. Indeed, the speculative mania we’re seeing of late is blurring the lines between conventional investing and gambling today.
Accordingly, it’s perhaps more difficult today to assess high-quality long-term growth plays than ever before. But in this article, I’m going to highlight three of the best such options for long-term investors.
Accordingly, let’s go!
A historical growth gem, Restaurant Brands (TSX:QSR)(NYSE:QSR) has been under pressure of late. The pandemic has hit the company’s in-restaurant sales significantly. New location growth has slowed, and there’s little in the way of near-term catalysts with the potential to take this company out of this funk.
Or so it seems.
I think Restaurant Brands is one of the best post-pandemic recovery plays on the market today. A turnaround underway at the company’s Tim Hortons’ franchise has the potential to take investors on a nice ride. The company’s core banners have a loyal following of consumers and provide investors with a very wide moat. For long-term growth investors, these are the kind of factors to be considered.
Restaurant Brands is one of those fantastic businesses which is being temporarily undervalued by the market today. Accordingly, I think investors need to give this stock a hard look at these levels.
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As far as unconventional growth plays go, Spin Master (TSX:TOY) is an ideal buy now.
This company is a well-known toymaker with a number of high-quality brands such as Hatchimals and Paw Patrol under its belt. Accordingly, from a purely organic growth perspective, this consumer discretionary play looks well-positioned to take advantage of a post-pandemic surge in consumer spending.
However, Spin Master has also recently gotten into digital gaming of late, in a big way. The company’s Toca Life World app has spurred revenue growth of 400% year-over-year this past quarter in this growth segment. Spin Master’s track record of hitting home runs with its IP and new content releases continues to impress. Investors considering growth plays with wide moats ought to also consider Spin Master in this regard.
The company’s long-term cash flow growth potential continues to be the primary reason I focus on this otherwise boring play. This company has come on my radar a couple of years ago and since then has blown away even my most aggressive targets. For those who believe in this company’s management team and the direction it’s headed, Spin Master looks cheap at these levels relative to its growth potential.
Like these top growth plays? Here are a few more to consider right now:
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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.
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Spin Master. The Motley Fool recommends RESTAURANT BRANDS INTERNATIONAL INC.