3 Top Growth Stocks That Turned $10,000 Into $100,000 in the Last 5 Years

Here’s why growth stocks such as Shopify and WELL Health remain solid long-term bets right now.

| More on:
Knowledge concept with quote written on wooden blocks

Image source: Getty Images

Growth stocks have the potential to increase your wealth at an exponential rate over time. As these stocks have a high beta, they tend to outpace the broader markets in a bull run. Alternatively, when markets turn bearish, investors should also be ready for a significant pullback in their portfolio value.

Here, we look at three quality growth stocks in Shopify (TSX:SHOP)(NYSE:SHOP), WELL Health Technologies (TSX:WELL), and The Trade Desk (NASDAQ:TTD) that have already returned over 1,000% to investors in the last five years.

Shopify

Canada’s largest company in terms of market cap, Shopify stock has been up 2,900% in the last five years. In 2020, the e-commerce giant increased sales by 86% year over year. Its stellar top-line growth continued this year, evidenced by sales that were up 57% in Q2.

The ongoing pandemic served as a tailwind for companies part of the e-commerce space, allowing Shopify to onboard merchants on its platform at an accelerated clip. It now has 1.7 million merchants on the platform, at the end of Q2.

Shopify sales have risen at an annual rate of 65% in the last three years, allowing the company to report free cash flows of $507 million in the last year. Further, Shopify has estimated its total addressable market at $153 billion, providing the company with enough room to expand its top-line in the future.

WELL Health Technologies

A Canadian company that has focused on highly accretive acquisition to gain traction in the digital health segment, WELL Health Technologies is valued at a market cap of $1.11 billion. Analysts expect WELL Health sales to rise to $461 million in 2022, up from just $414,000 in 2017.

WELL Health has a majority stake in Circle Medical, a Silicon Valley-based company. Circle Medical aims to have a presence in 46 states by the end of the year and its revenue run rate exceeds $20 million right now. Further, its sales grew by 346% in the last month and rose by 275% in the last quarter on the back of a 191% growth in total active patients.

WELL Health stock is up 6,270% in the last five years, valuing the company at a market cap of $1.38 billion.

The Trade Desk

The final stock on my list is The Trade Desk, a company that operates in the digital advertising space. TTD uses bid factor technology to value ad impressions, allowing advertisers to better target their audience on a real-time basis.

In the second quarter of 2021, TTD sales more than doubled to US$280 million. Its adjusted EBITDA margin also improved to 42%, up from its pre-pandemic EBITDA margin of 36%. The company ended Q2 with 875 enterprise clients and confirmed the number of brands spending over US$1 million in connected television on its platform more than doubled year over year.

The Trade Desk also enjoys a high customer retention rate that has remained over 95% since 2014. It remains well poised to grow revenue at a fast pace in the upcoming decade on the back of aggressive international expansion.

TTD stock has risen by 2,500% in the last five years and is currently valued at a market cap of $36 billion.

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 Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify and The Trade Desk. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Tech Stocks

Question marks in a pile
Tech Stocks

Should You Invest in Absolute Software Stock Right Now?

Absolute Software (TSX:ABST) is a tech stock that is worth your attention, as it offers exposure to exciting security markets.

Read more »

Online shopping
Tech Stocks

Should You Buy Shopify Stock If the Rate Hike Cycle Slows?

Is SHOP stock a buy after its 72% drop this year?

Read more »

Doctor talking to a patient in the corridor of a hospital.
Tech Stocks

3 Healthcare Stocks to Buy for Long-Term Passive Income

Healthcare stocks provide exposure to an essential service sector. They are also the best for passive income in the short…

Read more »

edit Women wearing red sweater shopping online and using credit card at home office
Tech Stocks

Shopify Stock Soars as Tech Stock Breaks Another Black Friday Record

Shopify (TSX:SHOP) stock jumped on the report of beating Black Friday sales records of 2021, and there's still Cyber Monday…

Read more »

stock data
Tech Stocks

Better Buy: CGI Stock or Constellation Stock?

Not all tech stocks are bad, and Constellation stock (TSX:CSU) and CGI (TSX:GIB.A) prove that. But when it comes to…

Read more »

healthcare pharma
Tech Stocks

Here’s Why I Just Bought WELL Health Stock

Although there are several high-quality stocks you buy undervalued today, WELL Health Technologies has to be one of the best.

Read more »

money cash dividends
Energy Stocks

Sitting on Cash? These 2 TSX Stocks Are Great Buys Today But Won’t Be Forever

If you have the appetite for risk, you might consider investing in some great buys today, including a tech stock…

Read more »

woman data analyze
Tech Stocks

5 Things to Know About BlackBerry Stock in November 2022

Should you buy BB stock?

Read more »