3 Growth Stocks That Could be Huge Winners in the Next Decade and Beyond

Growth stocks like Canopy Growth and Well Health Technologies are poised for explosive upside as their businesses gain traction.

Medicinal research is conducted on cannabis.

Source: Getty Images

Growth stocks offer investors the possibility of massive capital gains. They’re often operating in a new, rapidly growing industry. And they usually have some sort of competitive advantage, such as first mover advantage.

The opportunity that growth stocks offer is alive and well today despite market turmoil. Without further ado, here are three growth stocks that could soar in the years ahead.

Ballard Power Systems: A fuel cell stock cleaning up the transportation industry

The first growth stock that I’d like to discuss is Ballard Power Systems Inc. (TSX:BLDP)(NASDAQ:BLDP). Ballard is a leading global provider of innovative clean energy and fuel cell solutions. These fuel cells already power transportation vehicles such as buses and trucks with zero emissions. The stock has been very volatile, as one would expect from growth stocks.

Growth stocks Ballard Power stock

As we can see from Ballard’s price chart above, this growth stock has not been for the faint of heart. But for those of you that are willing to bear the volatility, the future looks bright. For example, Europe’s new hydrogen initiatives are accelerating the adoption of fuel cell electric vehicles. Earlier this year, a significant hydrogen initiative was approved by the European Commission. This plan will see Europe investing heavily in hydrogen in order to reduce its dependence on fossil fuels.

This is more good news for the hydrogen industry, and ultimately for Ballard. In fact, Ballard management expects that the momentum will accelerate sharply in the coming years. This means rapid growth in activity levels as well as rapid revenue growth. In its latest quarter, Ballard continued to make progress. While the company still posted a net loss, backlog sits at almost $100 million. This increased scale will continue to drive Ballard’s costs down and ultimately, result in positive earnings.

Well Health stock: Digitizing the health care industry at rapid speed

Well Health Technologies Corp. (TSX:WELL) is an omni-channel digital health company. Currently, the company is achieving rapid revenue and operating cash flow growth. This is being driven by soaring demand for its technology. Fortunately, the healthcare industry is finally embracing technology and this is evident in Well Health’s results.

Well Health stock

In its latest quarter, Well Health posted record revenue and cash flows. In fact, revenue increased almost 130%. Furthermore, operating cash flow increased an impressive 450%. Yet, Well Health stock has languished. Like Ballard, Well Health has a leadership position in its industry. And it’s an industry that’s looking forward to leaps and bounds of progress. Both of these companies are changing the world for the better. Both of these stocks can be expected to benefit massively from their respective positions in their booming industries.

Well Health stock is backed by strong cash flow growth. It’s also backed by a reasonable valuation of less than two times sales.

Canopy Growth: A cannabis stock whose day has come

When cannabis stocks were all the buzz a few years ago, I just watched. While I always believed in the potential of this industry, I refused to pay up for its stocks. Today, things are different. Cannabis stocks like Canopy Growth Corp. (TSX:WEED)(NASDAQ:CGC) have plummeted. Yet, the industry has progressed forward. This combination of lower valuations combined with lower industry and company risks, has me interested. I like that investors have lost interest. I also like that expectations priced into Canopy Growth stock have fallen dramatically.

Canopy growth stock

So, Canopy Growth is a global cannabis company that has sealed itself a leading spot in the emerging cannabis market. This market has two parts to it, the medical cannabis market and the recreational market. Similar to any stock that’s operating in an emerging industry, Canopy Growth is currently burning cash. This has many implications for shareholders – most importantly, that it’s a high-risk name.

But the cannabis industry clearly has great potential. It’s a product that meets the needs and desires of many. So, it makes sense that the global cannabis industry’s market size was estimated at $28 billion in 2021.  And that it’s expected to grow significantly in the next few years. Some estimates are calling for annual growth rates of 30%+.

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 Karen Thomas owns shares of Canopy Growth, Ballard Power, and Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

Target. Stand out from the crowd
Dividend Stocks

RRSP Pension: 2 Dividend Stocks to Buy on the Latest Dip

These high-yield TSX stocks look cheap right now for RRSP investors.

Read more »

bulb idea thinking

The Smartest TSX ETF to Buy With $1,000 Right Now

Forget the TSX 60 or the TSX Composite. I prefer the TSX Dividend Aristocrats.

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada

CPP Benefits Not Enough? This Top Dividend Stock Can Help Fund Your Retirement

Canadian retirees can look to supplement their CPP payout with quality dividend stocks such as Headwater Exploration.

Read more »

grow dividends
Stocks for Beginners

Why Cargojet Stock Is Surging Past 52-Week Highs

Cargojet (TSX:CJT) stock surged by 17% after a new deal was announced, with upgrades coming in as well for the…

Read more »

protect, safe, trust

It’s Time to Defend Your Wealth: 3 Top Stocks to Help Keep What’s Yours

For those looking to defend your wealth against what appear to be robust oncoming macro headwinds should consider these stocks.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Safe and Sound Stocks for Canadians: My Top 5 Choices

Five safe stocks to buy on a market pullback.

Read more »

Financial technology concept.

Couche-Tard Stock: Today Is a Huge Buying Opportunity

Alimentation Couche-Tard (TSX:ATD) stock looks like a steal after its latest unwarranted plunge into a correction again.

Read more »

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »