3 High-Growth Stocks That Could 10X in 10 Years — or Sooner

Is your portfolio in need of some serious growth? Here are three top picks to consider.

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The Canadian stock market as a whole may be flat on the year, but there are still plenty of deals to be had on the TSX. Growth stocks, particularly in the tech sector, could be an interesting place for long-term investors to be bargain hunting today.

Anyone that’s looking to take advantage of the discounts on the TSX should be mindful of their investing time horizon. With some major question marks still on the economy’s short-term direction, I’d be braced for more volatility. That means it may take some time for some of the beaten-down growth stocks to return to their market-beating ways. 

If you can afford to be patient, here are three growth stocks that are currently trading at opportunistic discounts.

Shopify

Shopify (TSX:SHOP) is well on its way to not only returning to all-time highs but also reclaiming its position as the largest company in the country. It wasn’t long ago that the tech giant owned the largest market cap on the TSX. But after dropping more than 70% in 2022, Shopify has since given up the top spot.

Shares are up close to 50% year to date and nearly 70% over the past 12 months. There is still a long way to go to return to new highs, but the tech stock is trying to make the case that it bottomed out in 2022.

There’s a price to pay for owning a stock with as many expectations as Shopify. Despite its massive market cap size already, investors are not expecting revenue growth to slow down anytime soon. As a result, I’d be prepared for more volatility if you’re considering owning this high-growth tech company.

WELL Health Technologies

Investors that are worried they missed the boat on the telehealth boom now have their opportunity to get in. 

As demand skyrocketed in the early days of the pandemic, so too did the share price of telehealth leaders like WELL Health Technologies (TSX:WELL). Shares of WELL Health ended 2020 up more than 400%. 

Today, the growth stock is down about 50% from all-time highs but up close to 200% since the beginning of 2020. It’s slowly making ground back up and is currently crushing the market’s returns year to date.

Even with the post-pandemic surge, WELL Health is still only valued at a market cap of $1 billion. The stock has been a multi-bagger performer since it joined the TSX in 2016, and I’m betting that there will be many more years of those types of gains. 

Air Canada

Airline stocks aren’t typically known for driving market-beating returns. However, Air Canada (TSX:AC) had been doing exactly that right up until the start of the pandemic. Even with the stock up close to 20% this year, it’s still down more than 50% below pre-pandemic prices. That puts Canada’s largest airline at a loss over the past five years.

When it comes to growth, Air Canada likely won’t be able to compete with most high-flying tech stocks. But if you’re looking for a proven growth stock trading at a bargain price, Air Canada should be top of mind.

It may be a slow return to all-time highs, but I can’t see Air Canada giving up its top market-share position in the Canadian airline space for a long time.

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 Nicholas Dobroruka has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

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