When it comes to growth investing, the goal is to make money. Furthermore, investors adopting this investment strategy won’t want to waste their time holding onto companies that don’t offer the potential massive gains soon. Therefore, it’s imperative that investors are able to identify companies that have the ability to serve a large market and become a global leader in their industry. In this article, I’ll discuss three stocks that could triple by 2030.
Take advantage of the growing online retail industry
Currently, one of the industries that is most primed for growth in the coming decade is the e-commerce industry. Over the past two decades, online retail has slowly increased in penetration in many countries around the world. However, the COVID-19 pandemic has shown that it can reach even greater levels. Although I remain bullish on Shopify over the next decade, the company’s explosive growth over the past few years suggests it may not be able to triple by 2030. Instead, investors should consider Nuvei (TSX:NVEI).
Nuvei offers payment-processing services via its proprietary platform. Using its software, merchants are able to accept mobile, online, in-store, and unattended payment transactions. Although Nuvei isn’t technically an e-commerce company, it is posed to grow alongside the online retail industry. Investors uncertain of its ability to grow should look at the recent growth of Adyen and PayPal through the pandemic. Having already grown more than 210% since its IPO, we’re still in the early days of the Nuvei growth story.
When solid companies back a recent IPO, take note
It’s very rare for a new IPO to receive strong backing from one of the most sought-after companies on the market. However, that’s the situation we find ourselves in when it comes to Topicus.com (TSXV:TOI). In February this year, the company held its IPO on the TSX, and it seems like its stock has just shot straight up. Investors explain this strong performance to the company’s relationship with Constellation Software.
For those that aren’t familiar, Topicus was once a subsidiary of Constellation Software. Although it now operates as its own entity, the parent company still plays a vital role in Topicus’s day-to-day operations. Six members of its board of directors are executives from Constellation. If the Topicus management team can learn from Constellation’s wealth of experience, the company could avoid many of the mistakes that hindered Constellation’s growth early on. Having already gained nearly 90% since its IPO, Topicus is a stock to consider for your portfolio.
This company has thrived because of the pandemic
Prior to the pandemic, many companies still conducted employee training on-premises or didn’t have modern employee training programs. However, because many governments imposed business lockdowns, companies needed to find a way to adopt their processes to accommodate for remote operations. As a result, Docebo (TSX:DCBO)(NASDAQ:DCBO) saw its business thrive last year.
In fact, Docebo’s impressive business progress was reflected in its stock price last year. After hitting its lowest point during the COVID-19 market crash, Docebo stock went on to gain about 650%. Today, the stock trades about 630% higher than its closing IPO price. However, it’s still only a $3.2 billion company. This stock still has a lot of growth ahead of it. Its recent American listing and multi-year partnership with Amazon could power it to new heights.
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 Jed Lloren owns shares of Adyen, Docebo Inc. and Shopify. The Motley Fool owns shares of and recommends Amazon, Constellation Software, Docebo Inc., PayPal Holdings, Shopify, and Topicus.Com Inc. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.