$10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

These three growth stocks could deliver multi-fold returns over the next 10 years, thus creating fortunes for shareholders.

| More on:
A stock price graph showing growth over time

Image source: Getty Images.

Growth stocks are the companies that have the potential to grow their financials above the industry average, thus delivering superior returns in the long run. These companies usually require higher capital to fund their growth initiatives and trade at higher valuations. If an investor can grow his investment of $10,000 at a CAGR (compound annual growth rate) of 15%, he would have over $40,000 by the end of 10 years.

Meanwhile, the following three growth stocks have the potential to deliver over 15% of returns annually for the next 10 years.

Nuvei

Nuvei (TSX:NVEI) has been under pressure over the last few days amid weak second-quarter earnings, the lowering of its 2023 guidance, and the loss of a significant customer. It has lost around 46% of its stock value this month and is down over 85% from its 2021 highs. Meanwhile, given its healthy long-term growth potential, I believe the selloff is overdone.

Digital payments are gaining momentum and could grow in the double digits for the rest of the decade, thus increasing the addressable market for the company. Meanwhile, the payment processing company focuses on improving its product offerings, expanding its APM (alternative payment methods) portfolio, and venturing into new markets, which could boost its financials. Also, the company is strengthening its position in the iGaming segment through new customer wins.

Meanwhile, the recent selloff has dragged its valuation down to attractive levels, with its NTM (next 12-month) price-to-sales and NTM price-to-earnings multiples at 1.9 and 9.4, respectively. Considering all these factors, I believe Nuvei could deliver solid returns over the next 10 years.

WELL Health Technologies

Another growth stock that has the potential to deliver superior returns over the next 10 years would be WELL Health Technologies (TSX:WELL), which provides a comprehensive healthcare and digital platform to practitioners to offer omnichannel services. The company has been delivering solid financials amid organic growth and strategic acquisitions. In the recently reported second-quarter earnings, the company’s top line and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew by 21.8% and 16.2%, respectively.

The digital healthcare company had over one million patient visits and 1.5 million patient interactions during the quarter. Meanwhile, the growing popularity of virtual healthcare services has created a multi-year growth potential for the company, which has launched an artificial intelligence investment program to develop next-generation tools. It is continuing with its acquisitions to expand its footprint across North America, which could drive its financials in the coming years.

Despite its healthy growth potential, WELL Health’s NTM price-to-sales and NTM price-to-earnings multiples stand at 1.3 and 14.5, respectively, making it an attractive buy.

BlackBerry

My final pick is BlackBerry (TSX:BB), which operates in high-growth markets like IoT (Internet of Things) and cybersecurity. The demand for the company’s services is rising amid digitization and the rising popularity of connected cars. Its QNX platform runs on 235 million vehicles. Meanwhile, the company recently introduced a highly scalable and high-performance operating system, which could aid in developing next-generation tools.

The intelligent security software firm has also strengthened its cybersecurity solutions portfolio by introducing new AI-powered solutions. McKinsey projects IoT and cybersecurity sectors are converging to create an addressable market of $750 billion by 2030. Given its specialization in both sectors, BlackBerry is well equipped to benefit from this convergence.

Meanwhile, BlackBerry is witnessing healthy buying over the last few days amid reports of a takeover from Veritas Capital. However, there is no official statement from the company. So, considering its growth prospects, I believe BlackBerry would be an excellent long-term buy.

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei. The Motley Fool has a disclosure policy.

More on Tech Stocks

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

3 Millionaire-Maker Tech Stocks That Should Be on Your Radar

These three tech stocks have already proven themselves worthy, but have a lot more to prove in the near future.…

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

1 Tech Stock I’d Buy Before Shopify

Shopify (TSX:SHOP) stock might be stagnating, which could mean this other tech stock is at a prime advantage.

Read more »

man touches brain to show a good idea
Tech Stocks

Nvidia Stock Becomes World’s Most Valuable Company: Buy Now or Beware?

Nvidia (NASDAQ:NVDA) stock is now the world's highest valued company, with a market cap of US$3.34 trillion. So, is the…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

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

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run

Here's why Constellation Software (TSX:CSU) and Shopify (TSX:SHOP) are two top Canadian stocks long-term investors should consider.

Read more »