Canadian growth stocks are arguably some of the most important investments you can make for your portfolio. Companies that can grow rapidly for years can provide you with significant long-term wealth growth that might not be possible with safer stocks operating in more boring industries.
However, the promise of higher returns comes at the expense of greater risk to the capital invested in the assets. Ideally, you should balance out your investment portfolio by allocating a significant portion of it to dividend stocks.
But that does not mean you should stay away from growth stocks. Provided that you can find the right assets that offer you rewards that are worth the risk, Canadian growth stocks could help you become a much wealthier investor in the long run.
Today, I will discuss two growth stocks with a massive upside potential that you should have on your radar.
WELL Health
WELL Health Technologies (TSX:WELL) has gained a lot of popularity amid the pandemic. The healthcare company is one of the most exciting growth stocks that you can consider adding to your portfolio, considering the current climate. The telehealth services provider has played a vital role in revolutionizing the healthcare industry during the global health crisis.
The disruptive company has pushed the Canadian healthcare industry that was severely in need of innovation. WELL Health has already started making the changes necessary to help the industry move toward a brighter future. Its value accretive acquisitions in light of its improving performance have also enabled the company to grow its operations further.
Even in a post-pandemic era, the innovative solutions provided by the telehealth industry will continue to be relevant, and WELL Health stock is well-positioned to capitalize on the trend.
Greenlane Renewables
Greenlane Renewables (TSX:GRN) is another growth stock that offers massive upside potential to Canadian investors. The company is quickly becoming one of the world’s leading providers of biogas upgrading systems. As the world increasingly shifts its focus to adopt cleaner power generation, the company’s clean and renewable natural gas services could provide an ideal solution to meet the growing demand.
The renewable energy industry is growing at a rapid pace as environmental concerns continue to rise due to climate change. Greenlane Renewables has operations spanning 19 countries worldwide, giving it the geographical diversification necessary to generate significant revenues. Trading for just $1.40 per share at writing, the $210.6 million market capitalization stock has substantial room to grow with the rise of the renewable energy industry.
Foolish takeaway
The real challenge for growth-seeking investors is to find companies that can provide them with substantial upside to their portfolios without adding unnecessary risk to their investment capital. While no investment comes without capital risk, especially among growth stocks, it is possible to find companies with the potential to deliver stellar shareholder returns without you running the risk of losing your money.
Given the changing trends in the healthcare and energy industries, WELL Health Technologies stock and Greenlane Renewables could be ideal stocks to have on your radar or in your portfolio today.
