3 Stocks to Buy for Triple-Digit Gains in the Next 5 Years

If you are looking for triple-digit gains, you have to grow your risk tolerance to a relatively healthy level to access a sizeable asset pool.

| More on:
grow dividends

Image source: Getty Images

100% growth in five years is not a tall order. There are plenty of reliable growth stocks trading on the TSX that can offer this level of growth. But if you are looking for stocks that can more than double your money in the next five years and take you deeper into triple-digit-gains territory, the list might become smaller. There are three potential stocks on that list that you should keep an eye on.

A disgraced growth stock

Disgraced might be a harsh word to describe Cargojet (TSX:CJT) stock, but 2021 has been one of the worst (if not the worst) years for investors of this cargo airline. The stock has actually dropped about 8% in the last 12 months, and it’s not showing any signs of recovery. The company is facing some trouble with the pilot’s union, but that’s not problematic enough to keep the stock at this level.

Cargojet is a key player in the North American e-commerce industry and has healthy relationships with Amazon, the giant of the industry, which should have kept the stock afloat alongside other thriving e-commerce stock in Canada, especially considering its amazing history. One factor might have been the stock’s too rapid a rise in the last few years, and what we see now is just a long-winded, long-due correction.

Still, Cargojet has amazing growth potential, and if anything triggers another uptake, and the stock gains enough traction to replicate its last five-year growth, you might see returns somewhere between 300% to 400%.

A venture capital stock

StorageVault (TSXV:SVI) is an amazing growth stock, and its consistent growth is more akin to larger, blue-chip TSX growth stocks than the small-cap venture capital stocks that offer growth “spikes.” The company has been growing quite consistently over the last five years and has returned over 400% to its investors in about half a decade.

Its strength also comes from the fact that it’s a leader in a very niche real estate market: storage spaces. It’s an evergreen real estate segment, and if we believe SVI’s reports on the rising value of this asset class, it’s generously rewarding.

The company has risen to the mid-cap valuation, and its consistent growth has also made the stock quite overvalued. Still, if it can maintain its growth pace for the next five years, the stock can easily offer you about 400% capital appreciation.

An energy stock

Terravest (TSX:TVK) is another consistent growth stock. It’s not as rapidly growing as StorageVault is, but it’s also available at a much lower price. The company has returned about 243% to its investors in the last five years, and even though it’s part of the energy sector, which saw a lot of trouble in the last few years, Terravest has remained consistently rewarding.

Part of the reason for its dissent from the rest of the energy sector is that it’s not as exposed to oil (which has been the “black” sheep of the sector for some time) as most energy stocks are. Terravest makes specialty containers, vehicles, and other equipment for the energy sector, but through one of its products, it has also gained exposure to the business-to-consumer market. It’s a bargain at its current price and capable of tripling your money in the next half-decade.

Foolish takeaway

All three powerful growth stocks can help you get triple-digit gains in the next five years if they can maintain (or, in the case of Cargojet, reclaim) their growth patterns. The companies also have decent positions in their respective markets, and all are financially stable. And if they can maintain their growth streaks for longer, the returns they can offer over one or two decades could be quite enormous.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and CARGOJET INC. The Motley Fool recommends TerraVest Industries Inc and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »