2 Growth Stocks to Hold for the Next 10 Years

Given their multi-year growth potential and attractive valuations, I am bullish on these two stocks.

| More on:
Hand arranging wood block stacking as step stair with arrow up.

Image source: Getty Images

Growth stocks can potentially grow their financials above the industry average, thus delivering superior returns in the long run. However, these companies require higher capital to fund their growth. They usually reinvest their profits and hence don’t pay dividends. So, growth companies are considered riskier.

Having discussed the features of growth stocks, here are my two top picks you can buy and hold for the next 10 years to reap superior returns.


Nuvei (TSX:NVEI) offers a highly flexible and scalable technology that facilitates businesses transacting through digital tools, including next-gen payments. It operates in 200 markets and supports 150 currencies and 680 alternative payment methods (APM). Meanwhile, the growth in the omnichannel selling model has made digital payments popular, thus creating multi-year growth potential for the company.

The Montreal-based fintech company is focusing on developing innovative products, expanding its APM portfolio, making strategic partnerships, and expanding geographically to drive growth. Besides, it has adopted a disciplined cost management structure and is focused on improving its efficiency to drive profitability. In the September-ending quarter, the company’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin stood at 36.3%.

Given its growth initiatives, Nuvei expects its revenue to grow at an annualized rate of 15 to 20% in the medium term. It also hopes to improve its adjusted EBITDA margin to over 50% in the long term. So, its business outlook looks healthy. Despite its solid growth prospects, the company trades at a cheaper valuation, with its NTM (next 12 months) price-to-earnings multiple at 13.1, making it an excellent buy at these levels.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) focuses on developing technology and services that aid healthcare professionals in enhancing the patient experience. The company has been under pressure over the last few months following an increase in its third-quarter net losses. It has lost over 30% of its stock value compared to its 52-week high. Besides, the steep corrections have dragged its NTM price-to-sales and NTM price-to-earnings multiples to 1.1 and 14.9, respectively.

Meanwhile, the growth in the adoption of virtual healthcare services and digitization of clinical procedures have expanded WELL Health’s addressable market. Amid the expanding addressable market, the company is also developing new innovative products and enhancing its product offerings with new artificial intelligence-powered tools, which could strengthen its position. Further, the tech-enabled healthcare company is expanding its footprint and working on acquiring 13 clinics through absorption and 30 clinics through acquisitions.

In the December-ending quarter, WELL Health reported a record 1.2 million patient visits and 1.9 million patient interactions. Both parameters represent 18% quarter-over-quarter growth amid solid organic growth and contributions from acquisitions in Canada and the United States. Boosted by strong operating performance, the management hopes to post positive EPS (earnings per share) during the quarter. So, given its long-term growth prospects, improving financials, and attractive valuation, I am bullish on WELL Health.

Further, the Vancouver-based company has taken several initiatives to streamline its operations and optimize its cost structure, which could improve its operating efficiency and drive profitability. So, the company’s outlook looks healthy.

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

falling red arrow and lifting
Tech Stocks

Is Shopify a Buy, Sell, or Hold?

Shopify (TSX:SHOP) stock has been pulling back of late, opening up a window for dip buyers.

Read more »

Different industries to invest in
Tech Stocks

2 No-Brainer Growth Stocks to Buy Now With $2,000 and Hold Long Term

These growth stocks have already proven their worth this year, but are solid investments for long-term holders as well.

Read more »

woman data analyze
Tech Stocks

1 Stock That’s Just as Hot as Nvidia (Without All the Hype)

Nvidia (NASDAQ:NVDA) stock has surged in share price, but so has this stock, with a far lower share price to…

Read more »

Index funds
Tech Stocks

Constellation Software Stock: Buy, Sell, or Hold?

Unveiling the Code: Should you Buy, Hold, or Sell Constellation Software (TSX:CSU) stock at current levels?

Read more »

A plant grows from coins.
Tech Stocks

Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now

Growth investors should have these two tech stocks high up on their watch lists.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Tech Stocks

Well Health Stock Is Down 58% From its Highs – Time to Buy?

Well Health stock has been hit, but the company remains on a path of record-breaking revenues as it approaches positive…

Read more »

Business man on stock market financial trade indicator background.
Tech Stocks

TFSA: The Most Expensive Stock in Canada Is a Top Buy Today

CSU stock (TSX:CSU) may be the priciest stock on the TSX today, but there is a very good reason for…

Read more »

TFSA and coins
Dividend Stocks

TFSA: Invest $15,000 in CSU Stock and Get $4,694 in Passive Income

CSU stock (TSX:CSU) has surged in the last year, yet even if growth slows by half, you could create immense…

Read more »