2 Growth Stocks to Hold for the Next 10 Years

Given their multi-year growth potential, these two growth stocks are attractive buys.

| More on:
woman data analyze

Image source: Getty Images.

After a solid first quarter, the Canadian equity markets have turned volatile amid growing geopolitical tensions and concerns over a global slowdown due to a prolonged high-interest rate environment. However, investors with longer horizons should ignore these short-term volatilities to earn superior returns in the long run. Given their impressive multi-year growth prospects, the following two stocks offer excellent buying opportunities for long-term investors.


goeasy (TSX:GSY) is a subprime lender and leasing services company that has grown its revenue and adjusted net income at an annualized rate of 17% and 30.9%, respectively, since 2011. Supported by these solid financials, the company has delivered above 2,800% returns over the last 13 years at an annualized rate of 29.6%. Despite solid performance over these years, the company’s market share in the Canadian subprime credit market remains smaller. So, it has considerable scope for expansion.

Meanwhile, the lender witnessed solid loan originations of $2.7 billion during 2023, thus expanding its loan portfolio to $3.7 billion. Besides, its stable credit and payment performance lowered its net charge-off rate by 20 basis points to 8.9%. The provisions for future credit losses declined from 7.6% in 2022 to 7.3%. Its efficiency ratio, which measures the company’s ability to control its overhead costs, fell by 340 basis points to 33.6%.

Further, goeasy is expanding its product offerings, adding new delivery channels, and strengthening its digital infrastructure. These strategic initiatives could boost its financials in the coming years. In fact, the company’s management expects its loan portfolio to grow by 65% from its 2023 levels to reach $6 billion by 2026. This loan portfolio expansion could drive its top line at an annualized rate of 12.9%, while its operating margin could expand from 38.1% to 41% in 2026, thus offering an optimistic outlook.

GSY stock is also a Canadian Dividend Aristocrat, which has raised its dividends over the last 10 years. Its forward yield stands at 2.69%, while the stock trades at an attractive NTM (next 12 months) price-to-earnings multiple of 10.3. Considering all these factors, I believe goeasy would be a worthwhile buy for long-term investors.


Another growth stock I am bullish about is Docebo (TSX:DCBO), which offers an end-to-end learning platform to enterprises worldwide. Thanks to its highly configurable and personalized learning platform, the company has expanded its customer base from 900 in 2016 to 3,759 in 2023. During the same period, its ARPU (average revenue per user) has more than quadrupled to $52,000.

Besides, the company acquired PeerBoard and Edugo last year. The acquisition of PeerBoard enhanced its external training offerings, while Edugo’s acquisition enhanced its existing AI (artificial intelligence) capabilities. With the demand for learning management systems rising amid digitization, the learning solutions platform is well-positioned to benefit from the expansion. Further, most of its clients have signed multi-year agreements, stabilizing its financials. Amid the topline growth, the company’s profitability has been improving from a loss of $2.2 million in 2019 to profits of $16.3 million in 2023.

Given the expanding addressable market, growth initiatives, and improving profitability, I believe Docebo is an enticing long-term bet despite its expensive valuation.

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 recommends Docebo. The Motley Fool has a disclosure policy.

More on Investing

calculate and analyze stock

Prediction: My 2 Top TSX Stocks to Beat the Market in 2024 and Beyond

Any investment is a prediction on the future of stock. Here are two stocks that should deliver predictably strong returns…

Read more »

Retirees sip their morning coffee outside.

Here’s the Average RRSP Balance at Age 71 in Canada

If you hold stocks like Fortis Inc (TSX:FTS) in an RRSP, you pay no dividend and capital gain tax until…

Read more »

Dividend Stocks

2 REITs to Buy to Earn Like a Lazy Landlord

Becoming a landlord and managing the property yourself may give you the most direct exposure, but it also comes with…

Read more »

money cash dividends
Dividend Stocks

Beat the TSX Immediately With This Cash-Gushing Dividend Stock

This dividend stock has already beat the TSX today, even from 52-week lows. But it could only be the beginning.

Read more »

question marks written reminders tickets
Tech Stocks

Nvidia’s Historic Stock Split: Will Investors See Bigger Gains?

Nvidia's (NASDAQ:NVDA) record 10:1 stock split entices many investors in several important ways. But some myths aren't technically correct.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog

Retirees: 2 TSX Dividend Stocks That Have Raised Payouts Annually for Decades

These stocks offer high yields and should continue to raise their payouts.

Read more »

TFSA and coins

5 Canadian Stocks With a Real Chance of Tripling Your TFSA’s Value

TFSA balances can triple in value with five Canadian stocks that have delivered outsized gains in recent years.

Read more »

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

Want $1 Million in Retirement? 3 Stocks to Buy Now and Hold for Decades

Growth stocks such as Docebo and Celsius Holdings should help you generate outsized gains in the upcoming decade.

Read more »