Investing in quality stocks and holding them for decades should help shareholders create a retirement nest egg and benefit from the power of compounding. Here are three such millionaire-maker stocks you can buy right now and benefit from outsized gains in 2024 and beyond.
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Celsius stock
Valued at US$22 billion by market cap, Celsius Holdings (NASDAQ: CELH) develops, markets, sells, and distributes functional drinks and liquid supplements. In the last five years, CELH stock has returned a staggering 6,650% to shareholders, crushing the broader market returns by a wide margin. Celsius aims to gain traction in the energy drink segment, which is valued at US$44 billion globally.
While its revenue growth has decelerated in recent quarters, sales grew by 37% year over year in the first quarter (Q1) of 2024. Comparatively, revenue more than doubled to US$1.32 billion in 2023. Given its total addressable market, Celsius has enough room to grow its top line.
Beverage giant Pepsi owns an equity stake in Celsius and is also a key distribution partner of the energy drink company. This partnership has helped Celsius penetrate several locations across verticals such as restaurants, gaming, and recreation.
Priced at 88 times forward earnings, Celsius stock trades at a lofty multiple. However, analysts expect its earnings to expand by 32% annually in the next five years.
Docebo stock
One of the fastest-growing tech companies in Canada is Docebo (TSX: DCBO), which operates in the e-learning segment. In fact, Docebo was among the first companies to introduce artificial intelligence tech in this segment, and its capabilities have allowed it to acquire customers at a rapid pace.
Docebo ended Q1 with 3.833 customers and an annual recurring revenue of US$201 million. Moreover, its average contract value rose to US$52,000 in Q1 of 2024, up from US$12,000 in 2017. Docebo also emphasized that existing customers increased spending by 4% in the last 12 months.
Docebo now reports consistent profits and is forecast to expand adjusted earnings from US$0.08 per share in 2023 to US$1.2 per share in 2025.
An asset-light model allows Docebo to benefit from high operating leverage and command a premium multiple. Analysts remain bullish and expect the TSX tech stock to surge roughly 50% in the next 12 months.
Blackline Safety stock
The final growth stock part of this list is Blackline Safety (TSX: BLN), a tech company that is driving innovation in the industrial sector through IoT (the Internet of Things). Blackline enables companies to drive towards zero safety incidents and improved operational performance by leveraging connected safety devices and predictive analytics capabilities.
Blackline increased revenue by 25% year over year in Q1 of 2024, its 28th consecutive quarter of top-line growth. Further, gross profits rose 40% to $14.6 million, while the net dollar retention rate stood at 130%. It suggests existing customers have increased spending by 30% in the last 12 months.
While still unprofitable, Blackline stated it is on track to report a positive adjusted EBITDA in the second half of 2024 due to the strength of its product and service segments, margin enhancements, and expansion across utilities, energy, and industrial sectors.
Analysts remain bullish and expect Blackline stock to surge over 40% in the next 12 months.
