The TSX is still down by 9.5% year to date, and, in fact, has sunk 6% since the beginning of December. But in my view, this just gives you even more of an opportunity to buy cheap growth stocks if you’re hoping to reach millionaire status — even by 2030. It would take an investment of about $150,000, but if you’re serious about reaching $1 million, here’s how I’d do it.
I’m going to recommend the baby of the bunch. WELL Health Technologies (TSX:WELL) is a strong choice for investors wanting a lot from their growth stocks in the next few years. The company boomed during the pandemic, because of its telehealth offerings. Yet while investors have slowed down their purchases, the company hasn’t.
WELL stock is one of the growth stocks continuing to grow through acquisitions. However, most recently, it hit record results, reaching revenue that beat out records through organic growth as well. So, with shares at just $2.70, and only 46.65% of equity needed to cover all debts, it’s a safe buy I’d hold for even longer than seven years.
goeasy (TSX:GSY) has just been in the wrong industry at the wrong time. It didn’t seem that way a year or two ago. Since 1990, it’s expanded to loans of all kinds and seen record results during its most recent quarter.
But because it’s classified as a tech stock, investors dropped it like a hot potato. That’s provided investors with an opportunity to buy up growth stocks like this one while it trades at just 11.18 times earnings as of writing. Plus, you get access to a 3.42% dividend!
Not all companies have to be tech stocks to be considered growth stocks. In fact, we could see a lot of growth from Canadian Imperial Bank of Commerce (TSX:CM) in the next seven years. It’s had an overhaul recently, really focusing in on customer satisfaction, and that’s created more interest in this Big Six bank.
Even more interesting is that it’s one of the cheapest of the bunch. Shares trade at just 8.25 times earnings, and after a stock split are the cheapest by price at $55.11 as of writing. You can also gain a 6.13% dividend yield — by far the highest of the Big Six as well.
Making a million
To reach $1 million by 2030, that means each of these growth stocks need to make $333,333 in the next seven years. First, we’ll look at these three stocks reaching 52-week highs in the next year. For WELL Health stock, that’s a 110% upside; for goeasy stock, it’s 71% upside; and for CIBC stock, it’s 54% upside. Then we consider the average compound annual growth rate (CAGR) over the following six years. This comes to 68% for WELL Health, 29.3% for goeasy stock and 5.76% for CIBC stock.
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Then by 2030, you will have a total of $1,005,204.27 from an initial investment of $150,240.43 based on today’s prices.