For most investors, beating the inflation rate would be considered a reasonable long-term goal. However, for some, the goal is to find those rare stock market home runs that could generate life-changing amounts of wealth. Of course, it’s very difficult to find those stocks. However, if investors look in the right places, they could help increase their odds of finding one of these stocks. In this article, I’ll discuss three potential home-run stocks you should buy today!
This company is supported by a stock market beast
There are very few stocks that are able to create stock market millionaires. As of this writing, it’s unclear whether Topicus.com (TSXV:TOI) will join that exclusive list. However, it looks like the company has a lot of the right attributes that could help it achieve that lofty goal. Topicus is an acquirer of VMS businesses. Canadians should be very familiar with another company that operates a similar business, Constellation Software. Interestingly, Topicus was a subsidiary of Constellation Software once upon a time.
In February 2021, Topicus was spun off into its own entity. Since then, Topicus stock has gained about 45%. That’s a very impressive growth rate, considering it includes a nearly 35% decline from its all-time highs. Topicus is valued at about $3 billion, which makes it less than one-tenth the size of Constellation Software.
That being said, investors shouldn’t be worried about Topicus losing to Constellation Software because of competition. The larger company continues to play a large role in Topicus’s day-to-day operations. Six members of Topicus’s board of directors are executives with ties to Constellation Software. If the company can lean on Constellation’s vast wealth of expertise in this industry, it could avoid some of the major pitfalls that hindered Constellation’s growth early on.
A company changing the healthcare industry
Investors should be aware of what’s going on in the healthcare industry. The telehealth space has been heating up over the past couple years. This competition has been also thrust into the spotlight, due to the COVID-19 pandemic. WELL Health Technologies (TSX:WELL) has grown into a leading player within the space. It operates 77 primary health clinics across Canada and the United States and supports more than 2,800 clinics on its EMR network.
WELL Health’s biggest wildcard is perhaps its app.health offering. The company markets this as a marketplace and innovation hub for digital health. As of this writing, apps.health supports 36 apps. WELL Health aims to grow via an aggressive merger and acquisition strategy. Its CEO, Hamed Shahbazi is very experienced in that space, after leading TIO Networks, which was eventually acquired by PayPal for $304 million.
E-commerce will power this company to greater heights
The e-commerce industry interests me more than any other industry today. I believe that the companies that are able to gain large shares of their respective markets will end up as notable long-term winners. Goodfood Market (TSX:FOOD) is a leading player within the Canadian online grocery industry. With $379 million in revenue reported for fiscal year 2021, Goodfood has managed to grow at a CAGR of 163% since 2016.
Today, Goodfood operates 14 facilities across 10 provinces. This is incredible considering the company only had seven operational facilities in 2020. One goal in Goodfood’s near future is to bring on-demand food services to more major markets. If the company can pull that off, it could see an even greater increase in its revenue and subscription numbers.
