3 Stocks to Buy for 3X Growth Within a Decade

There are a decent number of growth stocks that have a reasonable shot of growing your capital three times in a decade, either through a spike or consistent growth.

| More on:

While stock spikes that have the potential to double or triple your capital overnight seem very alluring, they are hard to predict, so it’s essential to be prepared to hold the right assets for the proper length of time.

And there are three such assets that should be on your radar if your growth goal is slightly ambitious — to triple the capital appreciation within a decade.

A payment solutions company

Nuvei (TSX:NVEI)(NASDAQ:NVEI) is a relatively new stock, and its inception overlapped with post-pandemic market recovery momentum. It started trading in September 2020 and rose 272% in about a year. But then came the correction, and the stock is currently quite near the point it started from.

However, this pace of growth, even if it was triggered by the overall market condition, indicates that the stock may have a decent growth pace when it gains traction (organically).

As a payment solutions company, it has excellent overlap with e-commerce and other digital businesses. The company facilitates over 530 alternative payment methods around the globe and deals with over 150 currencies (including cryptocurrencies), which shows the strength of its product portfolio.

Unlike its stock, its financials have only gone up in the last eight quarters, so when the stock starts growing and is backed by its strong financials, it may gain enough pace to triple its capital within a decade.

A software company

Constellation Software (TSX:CSU) is hard to beat if you are looking for something classic. The software company has been growing consistently for well over two decades. It has returned about 280% to its investors in the last five years alone, and if it can replicate that pace going forward, you may achieve that triple capital growth goal much earlier than a decade.

Constellation is all about acquisitions, and it’s currently made up of six different companies, all with their target markets. This gives Constellation Software a geographically and industrially diverse portfolio. Its reach is quite extensive, and the clientele is spread out to over 100 countries.

The stock is quite overpriced, which is its usual valuation state, but for a company with such a stellar growth history, this overvaluation is justified.

A crypto company

Three times the growth within a decade can come in various forms. You can either tie your capital to a consistent grower like Constellation or buy a volatile company like HIVE Blockchain (TSXV:HIVE)(NASDAQ:HVBT). Its volatility comes from the asset class it’s associated with — i.e., cryptocurrencies. And this volatility has its perks. The company has grown its value by over three times twice in the last five years.

Considering its history, if you can buy the dip and hold on to it, the company will offer phenomenal growth within three to four years, following a spike in the crypto demand. HIVE is one of the few crypto miners that are not just focused on Bitcoin. Still, it is mining Ethereum as well and uses 100% green energy to mine it, which forestalls any negative environmental considerations.

Foolish takeaway

All three growth stocks have very different types of potential. Constellation’s growth potential is proven and time-tested, whereas Nuvei’s is just a promise. HIVE, however, follows another asset class, and to track its growth potential, you will have to look at the assets it’s associated with.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin, Ethereum, and Nuvei Corporation. The Motley Fool recommends Constellation Software.

More on Tech Stocks

gift is bigger than the other
Tech Stocks

Should You Buy Shopify While It’s Below $150?

As Shopify stock dips below the $150 mark, let’s explore if it’s the right moment to buy this e-commerce giant.

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

The AI Trade Is Back in Play: 2 Stocks to Buy for Summer Sizzle!

Consider Apple (NASDAQ:AAPL) and another cheap stock to be ready for a hotter AI trade.

Read more »

Data center woman holding laptop
Tech Stocks

Should You Buy Celestica Stock While It’s Below $175?

Down almost 30% from all-time highs, Celestica is a TSX tech stock that trades at a cheap valuation in June…

Read more »

space ship model takes off
Tech Stocks

1 Canadian Stock That Could Be the Best Investment This Decade

This tech stock might not seem like the most obvious buy, but trust me, it certainly should be.

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

The Smartest Growth Stock to Buy With $2,500 Right Now

Some of the smartest growth stocks are those that ride technology rallies irrespective of the tech revolution. They never get…

Read more »

Data center servers IT workers
Tech Stocks

Where Will CGI Group Be in 3 Years?

CGI could be a larger, more profitable, and more efficient TSX tech stock by 2028. Here's why.

Read more »

chip with the letters "AI" on it
Tech Stocks

The Ultimate AI Stock to Buy With $1,000 Right Now

If you’re looking to put $1,000 to work and ride the AI wave, here is a top TSX stock that…

Read more »

dividends can compound over time
Tech Stocks

3 Reasons I’m Considering Descartes Systems Stock for a $2,500 Investment This Month

Descartes Systems stock dipped 11% on June 4, creating an opportunity to invest $2,500. Here’s why this stock is a…

Read more »