2 Stocks With Millionaire-Maker Potential

These two top millionaire-maker stocks are some of the best businesses in Canada and offer significant long-term growth potential.

| More on:
financial freedom sign

Image source: Getty Images

Investing offers Canadians a tonne of benefits. It’s the best way to save and grow your capital for retirement or to reach financial freedom. It allows you to put your hard-earned money back to work for you. And, of course, it offers the potential to see your net worth skyrocket as high-quality stocks rapidly increase in value.

Of course, not every stock on the market is a potential millionaire-maker stock. However, there are several high-quality Canadian stocks with significant long-term growth prospects.

Furthermore, any stock that you can buy undervalued is ideal, but when you can buy a high-quality business with years of growth potential while it’s undervalued, you vastly improve the potential gains you can make over the long haul.

As exciting as investing can be, though, there are also considerable risks to keep in mind. Because every time you lose money on a stock or make a bad investment, you’re making it harder to grow your net worth and ultimately become a millionaire.

Therefore, it’s just as important to avoid bad investments as it is to find high-quality stocks. So, with that in mind, if you’re looking for some of the top Canadian growth stocks to buy today, here are two of the best with millionaire-maker potential.

One of the best millionaire-maker growth stocks on the TSX

There’s no question that one of the very best Canadian stocks on the TSX is Dollarama (TSX:DOL), the defensive growth stock.

Dollarama is an incredible business because it offers something consumers will never get tired of buying, discounted goods. Furthermore, the fact that many of the goods Dollarama sells are essential products or household staples ensures a steady stream of demand whether or not the economy is worsening.

In addition to its business model, Dollarama has also done an incredible job over the years of growing its store count, establishing its brand across Canada, and improving its merchandising.

This has led the stock to be one of the best and most consistent growth stocks on the market. In fact, over the last five and 10 years, Dollarama has grown investors’ capital at compound annual growth rates of 24% and 23%, respectively.

Plus, when you’re looking for millionaire-maker stocks and aiming to grow your net worth considerably, consistent compound growth is your best friend.

After two impressive years of significant revenue growth as the economy has worsened, though, Dollarama stock reached a new all-time high just last week. Furthermore, in the near term, analysts expect that Dollarama’s growth will slow down.

Therefore, while it’s one of the best Canadian stocks to buy and should certainly be on your watchlist, for now, you may want to wait for a slight pullback in the share price before buying the stock for the long haul.

A top Canadian healthcare tech stock

If you want a high-potential growth stock that is undervalued today, WELL Health Technologies (TSX:WELL) is one you’ll certainly want to consider.

Despite consistent and impressive revenue growth over the last few years, and now improvements in profitability in recent quarters, WELL has been out of favour since the end of the pandemic.

In fact, in the two full years since the end of 2021, its revenue has grown by over 150%, and its earnings before interest, taxes, depreciation, and amortization (EBITDA) is up by 88%.

Furthermore, for more than four years now, WELL has beaten consensus expectations in every quarter, yet its share price has only continued to decline.

Going forward, WELL’s guidance suggests that revenue will grow another 22% to 24% this year, and its adjusted EBITDA will increase 10% to 15%.

Meanwhile, today, WELL trades at a forward price-to-sales (P/S) ratio of just 0.95 times, the lowest it’s ever been and less than half of its three-year average forward P/S ratio of 2.03 times.

Not to mention, it trades at less than 13 times its forward earnings, which is an unbelievably cheap valuation for such a high-potential growth stock.

Therefore, with WELL Health still growing its operations rapidly, yet its share price is trading significantly undervalued and at the bottom of its 52-week range, it’s undoubtedly one of the best millionaire-maker stocks to buy now.

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 Daniel Da Costa has positions in Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

Solar panels and windmills
Energy Stocks

How Brookfield Renewable Stock Gained 40% in a Month

Brookfield Renewable stock (TSX:BEP.UN) surged in share price from a landmark deal and strong earnings, leading to a 40% jump.

Read more »

money cash dividends
Dividend Stocks

2 Under-$10 Dividend Stocks I’d Buy Right Now

Here's why low-cost dividend stocks such as Decisive Dividend should be part of your shopping list in 2024.

Read more »

Canadian Dollars
Dividend Stocks

5 Stocks You Can Confidently Invest $500 in Right Now

These five stocks are all some of the top businesses in Canada, making them stocks you can buy confidently in…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Worry-Free Dividends: 3 Stocks for Canadian Investors

These three Canadian stocks can help you earn worry-free dividends irrespective of market conditions.

Read more »

movies, theatre, popcorn
Investing

Cineplex Stock Looks Like a Steal at $8 and Change

Cineplex (TSX:CGX) stock is starting to look like a great deal as it looks to add to its recent swing…

Read more »

Woman has an idea
Dividend Stocks

The Smartest TSX Dividend Stocks to Buy With $1,000 Right Now

Here's why blue-chip TSX dividend stocks such as BAM and BMO should be a part of your shopping list in…

Read more »

Investing

The Top 5 Movers on the TSX in May

If you're looking for the best of the best, these five have been the top performers in May of this…

Read more »

stock data
Dividend Stocks

TFSA Pension: 1 Great Canadian Dividend Stock to Own for Growing Passive Income

This TSX dividend stock is down 35% from the 2022 high. Is it finally oversold?

Read more »