The Motley Fool

3 Growth Stocks That Could Make You a Millionaire

Image source: Getty Images

Last week, Motley Fool co-founder and CEO Tom Gardner stated that by focusing on smaller caps and growth, investors can set themselves up for success. I agree with that statement. Simply put, it’s a lot easier to become a millionaire today by investing in a smaller, $2 billion market cap company, than a large company like Apple. With that in mind, here are three growth stocks that could make you a millionaire.

This company has every chance of succeeding

One stock that has surely turned many everyday investors into millionaires is Constellation Software. Today, the law of large numbers makes it hard to believe that the company could continue doing that over the next decade. However, investors could see similar results by investing in Topicus.com (TSXV:TOI). Until it was spun out into its own company this past February, Topicus was a subsidiary of Constellation Software.

Today, Topicus sits at a market cap of $3.6 billion. That is less than one-tenth the size of Constellation Software. In fact, many investors are comparing the size and positioning of Topicus to Constellation Software in 2010. If the younger company can perform even half as well as Constellation Software, investors could see extraordinary returns over the next decade.

Online retail will push this company forward

Ecommerce is one of the largest secular trends around the world today. Each year, consumers are increasingly relying on online retailers to supply the products needed for everyday life. This shift toward online commerce was greatly accelerated by the COVID-19 pandemic.

With that said, many might think the stock in question would be Shopify. While it’s true, that stock could produce more millionaires from here, I believe Nuvei (TSX:NVEI) gives investors a better chance of earth-shattering returns.

Nuvei provides businesses with an omnichannel payments platform. Using its software, businesses are able to complete online, mobile, in-store, and unattended payments. Although it clearly serves many different avenues, Nuvei’s mobile and online payment solutions should be most exciting.

The company has managed to integrate cryptocurrency payments and onboarded online betting partners, which will make its platform more popular as those two spaces continue to grow. This is a stock that could blow up in a few years.

Visiting your doctor has never been this easy

When the COVID-19 pandemic hit, people needed to find a safe way to see their doctors. One common way that emerged over the past year has been the use of telehealth services.

In Canada, WELL Health Technologies (TSX:WELL) is the leading pure-play telemedicine company. There are currently more than 2,200 clinics included in its EMR network. In addition, WELL Health has managed to penetrate the massive American health care industry, which should help its growth in the coming years.

The global telehealth industry is expected to grow at a compound annual growth rate (CAGR) of 25.2% from 2020 to 2027. If that is the case, then the leaders in the industry should see massive growth.

By the end of the decade, there’s a good chance that WELL Health could be a much larger company than its current $1.44 billion market cap.

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 Jed Lloren owns shares of Apple and Shopify. The Motley Fool owns shares of and recommends Apple, Constellation Software, Shopify, and Topicus.Com Inc. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.