Stocks have historically outperformed most asset classes and generated massive returns in the long term. Thus, one must invest in shares of fundamentally strong companies to achieve long-term financial goals faster. However, when investing for the long term, investors must focus on companies that can consistently grow their revenues rapidly, even at a large scale. Further, these corporations should be growing profitably or can soon achieve sustainable earnings.
Against this background, here are five Canadian stocks with a solid potential to deliver massive returns over the next decade.
goeasy
goeasy (TSX:GSY) is must-have long-term stock with the potential to generate outsized returns. The company has consistently increased its revenue and earnings at a double-digit rate. Further, it has enhanced its shareholders’ returns through higher dividend payments in the past several years.
Thanks to its high-quality loan originations, stable credit performance, and large subprime market, goeasy’s top and bottom lines are expected to grow at double-digit rates in the coming years. Also, it could continue to enhance its shareholders’ returns through increased dividend payouts. The stock is trading cheaply near the current levels, offering an excellent entry point.
Shopify
Shopify (TSX:SHOP) is among the top stocks for building wealth. Shares of this technology company bounced back strongly in 2023, easily beating the TSX by a wide margin. Despite the recent recovery in its price, Shopify is trading well below its highs, providing a solid entry point near the current levels.
Shopify has grown its scale effectively. Further, it remains on track to deliver solid revenues, reflecting a shift in selling models towards omnichannel platforms. Its growing merchant base, innovative products, the addition of new marketing and selling platforms, and focus on improving margins to achieve sustainable profits in the long term bode well for growth and position it well to deliver stellar returns.
Docebo
My next pick is also from the tech space. I am bullish on Docebo (TSX:DCBO) for its ability to consistently deliver solid recurring revenues and focus on achieving sustainable profit. The company provides a cloud-based platform for enterprise learning and has been steadily growing its enterprise customer base. In addition, its subscription revenue remains strong while an increased number of its customers are adopting multi-year contracts.
Looking ahead, Docebo is expected to benefit from the continued momentum in its business, product expansion, and accretive acquisitions. Further, Docebo’s focus on expanding its generative AI (artificial intelligence) capabilities bodes well for growth.
Brookfield Renewable Partners
From tech, let’s move to renewable energy stocks. The sector is attracting significant investment and has the potential to deliver massive returns. Brookfield Renewable Partners (TSX:BEP.UN) can be a solid addition within the green energy segment. The company, with an installed capacity of 31,600 megawatts and a robust development pipeline, is poised to capitalize on strong demand.
Further, its high-quality assets, long-term power-purchase agreements, and continued investments in technologies and projects with solid risk-adjusted returns augur well for growth. Besides capital gains, investors also benefit from its reliable dividend payouts.
Cargojet
Cargojet (TSX:CJT) is the final stock on my list. This leading air cargo services provider has consistently outperformed the broader markets and generated massive returns. The stock has witnessed a pullback, providing a good entry point. Its diversified revenue base and partnerships with top logistics companies will likely drive its top line at a solid pace. Moreover, its next-day delivery capabilities provide a competitive edge.
The company is well positioned to capitalize on growing e-commerce penetration. Further, its long-term contracts, high customer retention rate, focus on optimizing costs, and opportunities in the international market are expected to accelerate its growth and drive its share price higher.
